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ACKNOWLEDGEMENT

The knowledge of our theoretical studies is absolutely incomplete without

its proper implementation and application in today’s diversified corporate

world.

With profound sense of gratitude and regard, we convey our sincere thanks

to our teacher, Dr. Shuchi Agarwal for her valuable guidance and the

confidence she instilled in us, that helped us in completion of the project

report. We would like to thank her for providing the basic knowledge of

Organizational Behavior, project topic & the methodology to be used for

preparing the report.

An undertaking of study like this is never an outcome of efforts put in by a

single person; rather it bears imprint of number of persons who directly or

indirectly helped us in completing the study.

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CONTENTS

1. Diversity

Introduction

Managing Diversity

Why Manage Diversity?

Indian and USA Context

2. Managing Workforce Diversity as

A Challenge

An Asset

3. World Best Companies to work for(Fortune Magazine)

4. How to Manage Diversity in an Organization?

5. Diversity Policy

Ways to ensure that Diversity program is successful

Policies that support Diversity at HP

6. A Case Study : Diversity at IBM

7. Conclusion

Bibliography

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Diversity Management

The Challenges & Opportunities

Introduction

Diversity is ubiquitous. We all are aware of it since decade‟s .No two persons

are similar. The world has been and is a stage of huge mix of people with

different backgrounds, religion, castes, race, culture, behavior, age, marital

status, nationality, educational qualification, political affiliation, levels of

ability, personality, gender and many more which vary across the globe. Other

sources of differences include socio - economic background of individuals,

membership and non membership of unions, forms and quality/quantity of

education, period and nature of employment, drives to work, and work styles.

Work place diversity therefore, intends to also consist of social, economic and

political visible and non visible differences which might not have a direct

creational origin from the work place, but certainly have direct impact on work

attitude and performance at the work place. Diversity itself relates to the fact

that we are all unique individuals.

Organizations are becoming increasingly cosmopolitan. A typical

organization is emerging as a place of diverse workforce in terms of gender,

race and ethnicity. One can find a Shastri rubbing shoulders with a khan, both

jostling with a Gowda, and all shaking hands with a Singh. Then there are

physically handicapped, gays and lesbians, the elderly and even people who are

significantly overweight

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Though they work together, they maintain their distinct identities, diverse

culture and separate lifestyles. Managers of today must learn to live with these

diverse behaviors. Diversity, if properly managed, can increase creativity and

innovation in organizations as well as improve decision making by providing

different perspectives on problems.

Diversity mainly came into the picture when globalization came in 1990-91.As

the wave of globalization sweeps across the organizations, there is a

convergence of workforce from diverse countries, cultures, values, styles etc

.Such convergence of distinctly different people presents tremendous

opportunities as well as challenges. Organizations can derive unassailable lead

in the marketplace when they have in place effective Human Resource

Management practices and diversity initiatives that accepts differences, values

equality and creates preferred places to work

And as we enter the 21st century, workforce diversity has become an essential

business concern. In the so-called information age, the greatest assets of most

companies are now on two feet (or a set of wheels). Undeniably, there is a

talent war raging. No company can afford to unnecessarily restrict its ability to

attract and retain the very best employees available.

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Managing Diversity A management system which eliminates the differences found in a

multicultural workforce in a manner which results in the highest level of

productivity for both the organization and the individual. In simple words

managing diversity means managing people in the best interest of employee

as well as employer.

Managing diversity is an on-going process that explore the various

talents and capabilities which a diverse population bring to an organization,

community or society, so as to create a wholesome, inclusive environment,

that is “safe for differences,” enables people to “reject rejection,” celebrates

diversity, and maximizes the full potential of all, in a cultural context where

everyone benefits from Multiculturalism, as the art of managing diversity, is

an inclusive process where no one is left out.

Earlier, the management followed melting pot approach to

differences in workforce. It was assumed that people who were different would

somehow manage with the majority group. But it is now recognized that

employees don‟t set aside their values, beliefs, lifestyles, preferences, etc when

they come to work. Therefore, it is desirable to recognize and value such

differences by adapting management practices to different life and work styles,

etc of the diverse group.

Diversity management involves creating a supportive culture where

all employees can be effective. In creating this culture it is important that top

management strongly support workplace diversity as a company goal and

include diversity initiatives in their companies' business strategies. It has

grown out of the need for organization to recognize the changing workforce

and other social pressures that often result.

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Why Manage Diversity There are various reasons explaining the need to manage diversity. They are:

A large number of women are joining the work-force.

Work-force mobility is increasing.

Young workers in the work-force are increasing

Ethnic minorities' proportion constantly in the total work-force is

increasing.

International careers and expatriate are becoming common.

Diversity can be seen through these figures in Indian context Over 400 million women are employed in various streams

Around 30 percent of the workforce in the IT sector is women

Socially disadvantaged people (scheduled casts/tribes, etc.) have entered

organizations as a result of a policy of reservations and concessions.

Old employees have grown in number because of improved medical and

health care.

IT Industries like Infosys, TCS and Wipro are actively recruiting foreign

nationals and women, both by choice and design.

Bharti Enterprise has mandated their recruitment agencies to have a 25-30%

percentage of women candidates at the interview stage.

Diversity in companies is no longer about being melting pots, but being salad

bowls," according to Grady Searcy. "We want people to retain their identity yet

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be integrated into the company Currently, 7.5 per cent of our workforce

consists of non-Indians," said Mr. S Padmanabhan, Executive Vice President

and head Global human resource, TCS said while speaking at the Nasscom HR

Summit on `The War for Talent'. The Indian workplace is no different from

global MNCs.TCS has announced plans to hire about 4,000 people from across

the world.

A majority of HLL customers are women but till 2000 women constituted just

5% of its management. Alarmed by that number, the company put in place a

plan to hire more women. It looked at companies like ICICI , which had a far

better representation of women in their workforce. HLL started several

initiatives like a six-month fully paid maternity leave as well as a five-year

sabbatical.

IN USA • By 2050 the percentage of Hispanics will grow from today‟s 11 percent of

workforce to 24 percent

• Blacks from 12.5 to 14 percent

• Asians from 5 percent to 11.5 percent

• The 55 + age group which currently makes 13 percent labour force will

increase to 20.5 percent by 2014

• The white non-Hispanic percentage of the population has decreased from

77.7 percent in 1990 to 73.1% in 2000 and it is projected to decrease

further to 69.2% by 2010.

• Number of female workers have increased from 29.6 percent in 1950 to

46.7 percent in 2003 and are projected to increase to 47% by 2010

• Currently, as per ILO report, 45% of world women population aged (15-64)

are employed.

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Challenges in Managing Employee Diversity

Diversity presents managers with following set of challenges:

1. Individual versus Group Fairness: This issue is closely related to the

“difference in divisive versus better” i.e. how far management should go

in adapting HR programs to diverse employee groups.

2. Resistance to Change: Long established corporate culture is very resistant

to change and this resistance is a major roadblock for women and

minorities seeking to survive and prosper in corporate setting.

3. Resentment: Equal Employment Opportunities (EEO) was imposed by

government rather than self initiated. The response to this forced change

was in many cases grudging compliance.

4. Group Cohesiveness and Interpersonal Conflict: Although employee

diversity can lead to greater creativity and better problem solving; it can

also lead to open conflict and chaos if there is mistrust and lack of

respect among groups. This means that as organizations become more

diverse, they face greater risks that employees will not work together

effectively. Interpersonal friction rather than cooperation may become

the norm

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5. Segmented Communication Networks: It has been seen that most

communication in the organization occurs between people with some

similarities either by way of gender or by way of same place.

6. Backlash: Some group in the organization feels that they have to defend

themselves against encroachments by those using their gender or

ethnicity to lay claim to organizational resources .Thus, while women

and minorities may view a firms cultural diversity policy as a

commitment to improving their chances of advancement.

7. Retention: The job satisfaction levels of women and minorities are often

lower than those of majorities. Therefore it becomes difficult to retain

such people in an organization.

8. Competition for Opportunities: Already, there are rising tensions among

the disadvantaged groups jockeying for advancement. Employers are

being put into the uncomfortable position of having to decide which

disadvantaged group is most deserving.

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Diversity as an Asset

Diversity in the work force was previously thought to lead to garbled

communications, conflict, and a less efficient workplace. Today, many firms

realize that diversity can actually enhance organizational effectiveness.

a) New Products and Services: Diversity generates ideas in geometric

progression fuelling greater creativity and innovation. It can stimulate

consideration of less obvious alternatives. This results in flurry of new

products and services to meet the customer‟s expectation and needs.

b) Better teamwork: Organizations are operating in such a fashion that it is

impossible to function without teamwork. Interacting with diverse

workforce is leading to better ideas and enhancing the morale and

motivation in the organization

c) Better Image: Companies that have diverse workforce are having better

image, reputation and patronage than those who do not encourage

diversity. This has huge impact on expansion of business as it can reduce

the talent crunch by targeting the diverse groups.

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d) Effective and Happy workforce: Adept handling of diversity can multiply

motivation and enhance productivity due to the satisfaction employees

enjoy on being treated fairly, valued equally and given dignity at

workplaces. It reduces the chances of absenteeism and attrition too as the

undue stress, unnecessary frustration or low morale due to being

insensitive, discriminatory etc gets drastically reduced. Hence, many

organization are charting diversity initiative not merely to comply with

legal obligations but reap the business benefits especially in term of better

recruitment and higher retention among the talented workforce

e) Expansion of Markets: Globalization has brought together heterogeneous

teams to enhance the problem solving capabilities and produce creative

solutions leading to expansion of business landscape.

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Worlds Best Companies To Work For ( Fortune 500 Magazine)

According to the above mentioned data, we can analyse that best companies

(to work for) works with diverse group of people. Google, ranked first by

fortune500 magazine, employs about 36 % minority people and 33 % women‟s

0

10

20

30

40

50

60

70

Google Quicken Loans

Wegmans Food

Markets

Edward Jones

Genentech Cisco Systems

Starbucks

Minorities

Women to Men Ratio

Company Name

Rank

Minorities

(Percentage)

Women

to Men

Ratio

Has Non Discrimination Policy that

includes Sexual Orientation?

Google 1 36 33 Yes

Quicken Loans 2 19 44 Yes

Wegmans Food Markets 3 15 53 Yes

Edward Jones 4 6 65 Yes

Genentech 5 44 50 Yes

Cisco Systems 6 41 25 Yes

Starbucks 7 35 66 Yes

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in its workforce. Comparatively Edward Jones and Starbucks, ranked fourth

and seventh respectively accounts for more than 60% women manpower. Each

of these companies has non discrimination policy which is followed strictly so

as to ensure equity. This represents their efforts to recognize diversity and

make use of it in a positive manner i.e. as a company‟s asset

How to Manage Diversity in an Organization Diversity can be managed in an organization by taking following steps:

i. Embrace Diversity: Successfully valuing diversity starts with accepting

the principle of multiculturalism. Accept the value of diversity for its own

sake not simply because you have to. The acceptance must be reflected

in actions and words.

ii. Recruit Broadly: When you have job openings, work to get a diverse

applicant pool. Avoid relying on referrals from current employees, since

this tends to produce candidates similar to existing work force. An

exception is that if the present workforce is fairly diversified then there

is no harm in accepting referrals from current employees.

iii. Select Fairly: Make sure your selection process does not discriminate.

Particularly ensure that selection tests are job related.

iv. Provide Orientation and Training: Making the transition from outsider

to insider can be particularly difficult for non-traditional employees.

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v. Sensitize all Employees: Encourage all employees to embrace diversity.

Provide diversity training to help all employees see the value in diversity.

vi. Strive to be Flexible: Part of valuing diversity is recognizing that

different groups have different needs and values. Be flexible in

accommodating employee requests.

vii. Seek to Motivate Individually: A manager or the superior must be aware

of the back ground, cultures, and values of employees. The motivation

factors for a full time working mother to support her two young children

are different from the needs of a young, single, part-time employee or an

older employee who is working to supplement his or her retirement

income.

viii. Reinforce Employee Differences: Encourage employees to embrace and

value diverse views. Create traditions and ceremonies that promote

diversity. Celebrate diversity by accentuating its positive aspects. But

also be prepared to deal with the challenges of diversity such as mistrust,

miscommunication, and lack of cohesiveness, attitudinal differences and

stress.

ix. Involve all when Designing the Program: Involve as many employees

from every level in the organization as you can when designing a

diversity initiative. This gets people talking about the program and

promotes ownership and buy-in.

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x. Avoid stereotypes: Stereotypes are pre conceived notions which a person

holds for particular person. They are beliefs that all members of specific

groups share similar traits and are likely to behave in the same way.

Stereotypes create categories and then fit individuals into them. Holding

Stereotypes are harmful for several reasons. A person may be

misunderstood early in an interaction. Contributions may be limited and

specific strengths or talents may be overlooked because they do not seem

prominent in the given stereotypical category. On the other hand, poor

performance can be overlooked in an individual because they belong to a

stereotypically desirable group. By allowing stereotypes to manage people

we create natural divisions within the organization. Managers can combat

this by mixing teams, creating smaller mixed teams for subtasks,

monitoring all team members‟ progress and allowing individuals to

volunteer for roles rather than being cast into their default role as

defined by their stereotypical category.

In the current scenario in metro cities and corporate companies there are very

few problems with minority or traditional sector of employees are treated

differently. For that matter it does not reflect in the working at all making the

managerial task easier. We can say differential treatment continues in the

government sector due to political orientations and it is not the minority or

backward but majority and so called forward classes are the sufferers. This also

must be eliminated and only one class must get the support that is an

economically backward class belonging to minorities, all castes and creed.

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Diversity Policy

Today the attrition rate of every corporate sector is high due to lack of proper

diversity program/policy. It is more challengeable since we are in global

village. Before we look to hire diverse candidates, we must be sure that our

organizational culture and environment support diversity, otherwise retention

will become a challenge

The purpose of the Diversity Policy is to encourage an atmosphere in which all

staff embrace the benefits of working in a diverse community and to provide a

framework for the fair and equitable treatment of all employees, job

applicants, customers, suppliers and visitors irrespective of their individual

differences or any personal characteristics.

Following are 10 ways to ensure that our diversity program is successful

1. Make it strategic: Incorporate diversity into your business strategy and

communicate the professional “business sense” and leadership

commitment to diversity; make training only a part of the overall

diversity program; revisit existing policies and programs to ensure they

align with and support your vision for diversity.

2. Make it measurable: Know your baseline: How do your current employees

feel about your environment - Is it inclusive? Do they feel they are part of

the company team? Do they feel their input is welcome? Periodic climate

surveys and ongoing exit interview surveys can provide you with valuable

information with which to measure your program's effectiveness.

3. Make it relevant to your customers/clients: Who are your current

customers/clients? Who might your new customers/clients be and what

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are their interests? How might you position your organization to meet the

needs of an increasingly diverse market?

4. Make it inclusive:Make your program applicable to all employees of the

organization, rather than targeting people of color, women and/or

disabled employees.

5. Make sure there's accountability: Assign responsibility to a core team of

leadership professionals for the development and implementation of

strategic action plans

6. Make it experiential: Roll out development programs that enable

participants to draw from real world examples and engage in interactive

exercises so that they can “try-on” new concepts and build new skills.

7. Make it unifying:Rather than polarizing or alienating, which many

diversity programs tend to be as they recreate social inequities

8. Make it standard:Role model an appreciation of differences from the top

down; the message must stem from leadership and business vision, and be

modeled by senior executives.

9. Make it collaborative: Encourage accountability and ownership of the

responsibility for fostering an inclusive environment by all managers and

staff throughout the organization.

10. Make it comprehensive: Cover the basics, like rolling out compliance

training and developing anti-harassment and anti-bias policies, but be

sure to assign critical importance to the development of intercultural

competence and the associated skills.

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Policies that support Diversity at HP

No Discriminating Policy

Electronic job posting

Harassment-free work environment

Employee network groups

Open Door Policy

Education Assistance Program

Employee Assistance Program (EAP)

Open communications

Management by objective (MBO)

Share in company's success

Provide development opportunities

Flexible work hours

Safe and pleasant work environment

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A Case Study : Diversity at IBM

The case examines the diversity and talent management practices of the US-

based IBM, the leading IT Company in the world. IBM figured in the Fortune

magazine's list of "America's Most Admired Companies" in the year 2004. It

was appreciated for recruiting and retaining the best talent across the

world. IBM actively encouraged recruiting people from various social and

cultural backgrounds irrespective of their age, sex or physical status. In the

same year, IBM had developed a talent marketplace to effectively manage

its workforce. The marketplace supported employees to find the most

suitable job across different organizational units within the company.

Issues

1. To provide an understanding of diversity and its significance at the

work place.

2. To provide insights on how an organization can leverage diversity to gain

competitive advantage.

Introduction

In the year 2004, IBM was listed among the top 10 companies on Fortune

magazine's list of "America's Most Admired Companies." The ranking was

based on eight variables like employee talent, innovation, use of corporate

assets, social responsibility, quality of management, financial soundness,

long-term investment value, and quality of products/services

Fortune was appreciative of IBM for recruiting and retaining the best talent

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across the world. Analysts attributed IBM's success to its skilled diverse

workforce that included people from almost all the countries in the world.

Workforce diversity at IBM

Diversity at the work place in the US originated from the concept of EEO

(Equal employment Opportunity) in the 1940s. At IBM, Watson Jr. issued the

first equal opportunity policy letter in 1953. Later, it came under

government compliance under the Civil Rights Act of the US in 1964.

With the onset of „globalization' in the 1980s, organizations initiated efforts

to broaden their marketplace. In an attempt to sustain themselves amidst

the continuously increasing competition, they started doing business across

the world. This trend made it important for them to focus on diverse

cultures across borders in order to offer products and services that suited

the specific needs of different markets...

Recruiting people with disabilities

IBM had a well-structured plan in place for recruiting and training people

with disabilities. The recruitment specialists and hiring managers are

specially trained for this purpose. In each business unit, IBM had „line

champions' - the managers experienced in hiring and working with people

with disabilities - to facilitate the recruitment process. The company also

worked with various educational institutions for campus recruitment of

such candidates .IBM has a diversity website where prospective candidates

with disabilities could submit their resumes directly...

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Women at workplace

IBM started recruiting women professionals well before the Equal Pay Act,

1963. A letter issued by Watson Sr. in 1935 stated, "Men and women will do

the same kind of work for equal pay. They will have the same treatment,

the same responsibilities, and the same opportunities for advancement."

IBM's management has made efforts to find out what are the specific needs

of its women employees and provided women-friendly facilities accordingly.

This improved the productivity(of women) even while maintaining a proper

balance between work and family life.

IBM treats diversity as a part of its business strategy. It Have employees from

different social and cultural strata which helps them to understand and serve

its customers better.

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Conclusion

A diverse workforce is a reflection of a changing world and marketplace.

Diverse work teams bring high value to organizations. Respecting individual

differences will benefit the workplace by creating a competitive edge and

increasing work productivity. Diversity management benefits associates by

creating a fair and safe environment where everyone has access to

opportunities and challenges. Management tools in a diverse workforce should

be used to educate everyone about diversity and its issues, including laws and

regulations. Most workplaces are made up of diverse cultures, so organizations

need to learn how to adapt to be successful practices.

Diversity, if positively managed, can increase creativity and innovation in

organization as well as improve decision making by providing different

perspectives on problems. When diversity is not managed properly, there is a

potential for higher turnover, more difficult-communication, and more

interpersonal conflicts.

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BIBLIOGRAPHY

HRM Review, The Icfai University Press, Managing Diversity, Nov(2007)

Luthans, Fred ; Organisational Behavior

www.mindtools.com

Aswathappa K & Dash Sadhna; International Human Resource

Management

Robbins, Stephen; Organisational Behavior

Rao V.S.P; Human Resource management

Mejia L, Balkin D.V and Cardy L; Managing Human Resources

www.Financialexpress.com

U.S. Labor Review

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Submitted By

Section C (Roll Number 61 to 70)

1. Shruti Bhatia (Group Leader)

2. Sonal Khandelwal

3. Sukriti Harit

4. Sarthak Taneja

5. Shiva Kant Yadav

6. Shweta Shilpi Das

7. Shamita Paul

8. Satish Jangra

9. Shadab Anwar Siddiqui

10. Sunny Khatuja