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WORKFORCE DIVERSITY

CHAPTER 1

Diversity entails much more than just the differences that exist among people of different cultural backgrounds. Diversity implies a multidimensional mixture and includes a variety of dimensions in often complex combinations. Other differences also constitute diversity such as age, experience, marital status, family status, national heritage and skills. Also part of diversity is a variety of aspects like, religion, health, culture, parental status, income and physical ability.

There are two categories of differences between people. There are the primary and secondary categories. Primary dimensions are those personal characteristics that are inborn and which have an important and sustained effect on our whole life. These characteristics cannot be changed and are also directly observable by other people. Examples include race, gender, age, physical abilities and sexual orientation. Primary dimensions of diversity also comprise those differences that are likely to evoke responses such as bias, prejudice and stereotypes amongst people.

Secondary dimensions comprise those differences that people have control over and that can be changed by choice. This includes differences that people acquire, discard and modify throughout their lives and they are less visible. Examples include educational background, geographic location, income, marital status, military experience, parental status, religious beliefs and work experience.

Clements and Jones highlight that to embrace diversity is to come to a position of believe that the ways in which we all differ:

Are realities that should not and must not be ignoredDo not equal difficult or problemMean that we can accept that people see the world differently and that those world-views have equal validityAre not threateningAre positive things rather than negativeAre to be inclusive rather than exclusiveAre likely to involve some personal change

Diversity in the workplace suggests that people should be managed differently. To motivate people, one should manage their needs and expectations on both the personal and career-related levels. Companies that want to diversify their employees and manage their diverse workforce effectively should adapt their policies and procedures to some extent in order to

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accommodate the variety of needs and expectations amongst their employees. Managing diversity is regarded as a management approach or strategy that should incorporate strategies, policies and procedures aimed at managing workforce diversity effectively.

Managing diversity and related terms

1. Black advancement

Black advancement refers to interventions and strategies based on the belief that there is nothing more unequal than the equal treatment of unequals. The assumption is that black people do not have the resources to succeed in business. Because of the fact that black people are so disadvantaged, they will only be able to advance in the organisation by means of special development and training programmes that should be provided by the organisation. It is thus seen as a way of empowering black employees to increase their managerial skills and abilities, as well as their ability to take control of material and other resources. This will help them advance into management and enhance their socioeconomic status. Black advancement interventions include programmes such as literacy training, quality education, accelerated on-the-job training, mentorship and other related programmes. From a broader perspective, black advancement includes an improved quality of life for instance, a good salary, decent housing, educational assistance, community development.

2. Affirmative Action

Affirmative action is a temporary intervention aimed at rectifying the historical injustices inflicted upon specific groups in terms of occupational advancement and social, political and economic upliftment. It is an attempt to level the occupational and socio-economical playing field so that everybody can compete, based on equal access to education, training and occupational opportunities. It is thus a business strategy aimed at transforming the social and economic environment.

Affirmative action strategies are short term, occupational advancement strategies based on preferences in hiring and promoting people for previously disadvantaged groups. The objective is to give these groups access to job opportunities based on their potential to be able to do the job. Affirmative action is enforced through law.

In South Africa affirmative action has increasingly become a politicised practice – therefore whether you are against or for it depends on your personal and political beliefs and values. Affirmative action is a necessary step in the process to utilise the diversity in South Africa for national and global economic and political advantage.

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3. Employment Equity

The principle that applies to employment equity is that all people should be given equal access to job opportunities within a company. There should be equal employment opportunities for all. Equal access is given on the basis of merit, ability and potential. The aim of employment equity is to create a workplace where decisions about hiring or promotion are based only on factors that pertain to a person’s ability to do the job in question, and not on attributes specific to a group. Employment equity prohibits all forms of discrimination based on race, gender, physical handicaps, and sexual preferences.

Employment equity is also legally driven by the Employment Equity Act of 1998. The aim of the Employment equity act is to achieve equity in the workplace through the elimination of unfair discrimination, as well as through the implementation of affirmative action strategies. Despite prohibiting discrimination in all forms, employment equity also refers to the transformation in the workplace through fair discrimination. Fair discrimination allows for targeted affirmative action strategies and actions to redress the disadvantages that designated groups in the workforce experienced in the past. To achieve this, the organisational environment should be receptive to all new entrants at all levels in the organisation.

Unfair discrimination is regarded as discrimination in employment practices on the basis of a person’s affiliation to a variety of groupings, including age and gender. Every employer in South Africa is required to draw up and maintain an employment equity plan which includes 1) an analysis of current employment to eliminate possible discriminatory practices and 2) setting objectives and establishing a timetable with realistic human resource targets to ensure a representative workforce.

Employment equity might be very confusing to develop and implement because of the two opposite poles of discrimination – fair and unfair discrimination. The Employment Equity Act expects South African employers to comply simultaneously with both sets of guidelines, based on two distinct sets of values.

4. Valuing Diversity

Valuing diversity emphasises the awareness, recognition, understanding and appreciation of human differences. This means that people value the qualities that different employees bring to the workplace and not judging or rejecting opposing views and ideas. This approach is based on the assumption that undesirable behaviour and conflict in the workplace derive from a lack of awareness and understanding. Valuing diversity creates an organisational atmosphere in which all employees feel valued and

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accepted. This generally happens through training, orientation and awareness programmes. Interventions focus on changing current differences in values, attitudes and behavioural styles. The objective is to enhance effective interaction and lessen blatant expressions of racism and sexism.

De Beer and Riley present the following steps in the process of an intervention aimed at valuing differences:

1. Stripping away stereotypes2. Learning to listen and probe for differences in people’s assumptions3. Building authentic and significant relationships with people you regard as

different from yourself4. Enhancing personal empowerment5. Exploring and identifying group differences

An organisation in which diversity is valued is one in which employees have learned to accept individuality and avoid prejudice and stereotyping. It does not imply behavioural changes, because people resist diversity awareness training. It makes people uncomfortable to talk openly about personal differences and their impact on other people.

5. Managing diversity

Thomas and Robertshaw list some of the problems that have been experienced with affirmative action programmes:

Lack of trust between subgroupings in the organisationBreakdown in communication between subgroupsPrejudices and stereotypesPoor teamworkIntergroup conflict and decreased productivityHigh staff turnoverUnhealthy competition

It is evident that while occupational and development strategies such as affirmative action and employment equity can be legislated and forced upon employees, they will not be sustained if the organisational environment is not prepared to sustain the changes brought about by such initiatives. For these initiatives to be effective and environment must be created that will foster the increasingly diverse workforce. Managing diversity seems to be the process that will help in creating such an environment, but without excluding strategies such as affirmative action and employment equity. Thomas acknowledges that organisations may be doing the right

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thing by appointing people from previously disadvantage groups, but she believes the most critical issues are not being addressed in this regard:

What is not being address however are the issues most critical to success of developing and maintaining a truly diverse workforce at all levels. Such issues include organisational culture, structures and policies which, if not adjusted to the process, in all likelihood will render null and void the positive effects of all the other efforts. Clearly what is needed is … learning how in the long term, to manage employee diversity.

Managing diversity refers to a strategic organisational approach to developing workforce diversity, to managing organisational culture change and to empowering the entire workforce. Managing diversity represents a management approach which includes different management practices and strategies aimed at developing and empowering a diverse workforce. Diversity management is a paradigm for change, with people as its point of focus.

Thomas defines diversity as a planned, systematic and comprehensive managerial process for developing and organisational environment in which all employees, with their similarities and differences, can contribute to the strategic and competitive advantage of the organisation, and where no one is excluded on the basis of factors unrelated to productivity.

Kreitner and Kinicki refer to managing diversity as changing the organisational culture and infrastructure in order to enable people to perform at their highest potential.

Management of diversity differs from affirmative action in the following ways:

Affirmative Action Management of DiversityMutual adaptation process

It is accepted that individual employees will make the necessary adjustments on their own in order to adapt to the needs of the organisation

Accepts that the manager, the organisation and the employees will adapt to suit the requirements of each other.

Utilisation of potential

Focus on recruitment, higher mobility and retention of previously disadvantaged persons within a particular state or organisational structure

Focus on full utilisation of potential of all employees, the problem is no longer to appoint or recruit personnel (minorities and disadvantaged), but the utilisation of their potential at all levels

Affirmative Action Management of Diversity

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Evolutionary approach

Affirmative action focuses on “let’s get relief from undesirable practices as quickly as possible, even if through artificial means”.

Management of diversity prioritises spontaneous solutions.

Assistance to the manager

Assumes that action is taken to the advantage of the individual who has been disadvantaged in some way.

Management of diversity assists the manager in learning to establish the full potential of all employees, for example to utilise old and young people, men and women

Organisational matters

The driving forces behind affirmative action are legal requirements, moral prescriptions or social responsibility.

Diversity management is organisationally motivated; those persons who utilise diversity optimally within the organisation enjoy a competitive advantage.

Diversity management focuses on the development and implementation of organisational initiatives that increase the numerical representation of historically excluded groups; empowers a diverse workforce once it is in place to participate fully in organisational decision making; and ensures that inclusion of a diverse workforce in every aspect of organisational life is maintained.

CHAPTER 2

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Benefits of the paradigmatic approach

The paradigmatic approach to the development of historically disadvantaged employees is of great importance to all involved in people development, especially when designing affirmative action and managing diversity strategies.

It provides managers and employees with a historical overview of the development of disadvantaged employeesThe paradigmatic overview presents a holistic picture of the building blocks that managers and human resource practitioners need to consider when planning and implementing affirmative action and managing diversity strategiesThe range of paradigms can be used as a diagnostic tool to determine where the organisation is in terms of its paradigm about people development before embarking on a transformation process through affirmative action and managing diversity strategies

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PATERNALISTIC PARADIGM

Macro-environment Development approach

Managing of value differences

Modernisation focus

Development model

Employee participation Social responsibility

Implemented by Nationalist government when they adopted the apartheid policy.Black and White people were developed in different geographical areas.Black people could advance to managerial positions only in black companies.Separate education systems were introduced for blacks and whites.

Managers followed the deterministic approach to development of black employees.Approach based on the belief that black employees level of competence was determined by their previous experience and exposure to their previous environment.Black employees were regarded as being at a cognitive disadvantage because of their socially and educationally deprived environments.

Western value system was used by managers.Only typical Western values like capitalism, free enterprise and Western work ethics were deemed acceptable by managers. Primary assumption was that Western value system is superior to African value system.

Modernisation is the process when a culture adopts the value systems and customs of a more developed culture. The assumption was made that black employees must develop Western attributes, beliefs and behaviour. Yet managers seem to believe that black employees are incapable of advanced Westernisation.

Apartheid model was applied stringently. Black workers could only aspire to managerial positions in the homelands, where there were few opportunities.

Employees of colour were not expected to become involved in decision-making.Characterised by an autocratic leadership style and one-way communication.Worker committees ineffective because management appointed members who were not representative of employees and who were dominated by management.

Organisations rarely embarked on social responsibility programmes. Government developed some infra-structure in the homelands – viewed it as social and moral responsibility. Private companies were prohibited in investing in black group areas resulting in little attention to housing and education for blacks.

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EQUAL OPPORTUNITY PARADIGM

Macro-environment Development approach

Managing of value

differences

Modernisation focus

Develop-ment model

Employee participation

Social responsibility

During late 70’s apartheid legislation was relaxed. The Wiehan report formalised the principle that all employees should have access to senior positions. Should be equal opportunities for blacks and whites competing for high-level positions.Black people were responsible for catching up on their educational and development backlog.White and black people were seen as economically interdependent.

In developing black employees, white managers adhered to the expectancy theory and were reluctant to support black employees financially. Expectancy theory states that people are naturally inclined towards self-development. The advancement of black employees results from a combination of what employees expect from the future and the value that specific future rewards hold for the employee. Valence is the attractiveness of a more senior position and expectancy is the belief that the promotion will be a result of improving their qualifications, job performance and managerial skills. Managers said it is too costly to provide special development programmes to black employees. Also resisted the idea of singling black employees out for development. Subconscious level managers were still negative about advancing black employees. Expectancy theory did not have the desired results in motivating black employees to advance. Poor education, low aspiration, low confidence and lack of support from management contributed to failure.Osmosis model was adopted as primary development programme. After legal barriers removed, black employees gradually filtered upwards in organisations. There was an expectation that these black managers needed to be self-driven and should conform to Western values. Because of this black people moved very slowly. White managers adamant that work and production standards should not be lowered in order to allow more black employees in high-level positions.

Assimilation of Western values still deemed important, despite the realisation that it might be difficult process. Managers believed that they should not compromise on the Western values. Still expected black employees to conform to a different set of values, which were perceived superior.

Some managers believed that a small number of black employees had modernised sufficiently to occupy positions on a more senior management level. Urbanisation was now an accepted fact. The continuum model for modernisation was applied.

Equal opportunity paradigm, there was a movement towards real consultation. Participation by workers was still very structured and there was little spontaneous participation by black people in decision making.

Social responsibility toward the white community was still very strong, but black people were largely excluded from this.

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BLACK ADVANCEMENT PARADIGM

Macro-environment Development approach

Managing of value differences

Modernisation focus

Development model

Employee participation Social responsibility

Legislation inhibiting career advancement of black employees removed. Still not sufficient progress for black to high-level positions. Restrictions on residency removed and elementary power sharing formalised, but only with Indian and Coloured communities. Black people only had expectation of possible future power sharing. Manager realised that formal education system for black people was inadequate – accepted the responsibility for implementing remedial and developmental programmes.

White managers believed reason for slow development of black people was the gap in skills between black and white employees. Limited exposure to the modern work ethic and managerial role models was also regarded as a contributory factor. To resolve this – special bridging education and awareness programmes were initiated.

White managers more tolerant toward non-Western work value systems, yet organisations still adhered to unitary, modern, work value system. White managers still regarded the work values of black employees as unacceptable because the black value domination would lead to the destruction of the free market and capitalist economy.

Organisations were primary role-players in accelerating modernisation among black people who suffered inadequacies of black education and deprived home environments. Changes in the structural environment were instituted to help black employees develop a modern work ethic.

Many organisations introduced concept of participative management, but failed to succeed because of poor implementation. Failure can be attributed to poorly prepared managers who were still too unreceptive to new ideas and processes. Union representation became accepted and improved participation. Sharing of material and financial benefits was introduced, also shareholding and profit sharing for black people. Black employees participated in bursary schemes, pension funds, housing and other schemes.

Managers started realising their social responsibility to redress past economic and career development injustices. Organisations embarked on social responsibility projects. Changed attitude driven by a belief that such projects were an investment in the organisation’s future, whereas actually driven by motives of guilt and fairness.

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AFFIRMATIVE ACTION PARADIGM (ENFORCED DEVELOPMENT AND EMPOWERMENT)

In South Africa the focus has been primarily on the enforced development and occupational empowerment of black employees, although other disadvantaged groups have not been excluded. Affirmative action has been mainly driven by black liberation movements, political organisations and business considerations.

Objectives of affirmative action:

To rectify inequality regarding the racial structure of the workplaceTo rectify inequality regarding work policies, practices and facilitiesTo ensure that employees are broadly representative of South Africa’s race groups at all levels and in all disciplinesTo ensure that all work practices, policies and facilities are equitableTo ensure that the culture in organisations is conducive to affirmative actionTo ensure that business spending is directed to businesses owned by disadvantaged communities

Two sub-paradigms are distinguished within the affirmative action paradigm. Bottom-up and Bottom (Top)-down are the two sub-paradigms.

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AFFIRMATIVE ACTION PARADIGM – BOTTOM UP

Micro-environment Development approach

Managing of value differences

Modernisation focus

Develop-ment model

Employee participation Social responsibility

Was believed that affirmative action should be enforced from within the organisation before enforced through legislation. Organisation could implement the changes according to own organisational culture and structure, which should minimise productivity and efficiency losses.Breaking down of apartheid completed; National Party opted for power-sharing; introduction of black majority rule. Black liberation movements saw affirmative action as the institution of a black government and black people occupying the majority of senior positions. Government introduced mixed schooling; black people participated in highest social level and represented SA internationally in sport, arts, culture etc. Purchased residences and business in white areas.

Affirmative action was seen as strategic business issue – no choice of implementation.Social and economic pressures could be turned into a long-term competitive advantageLegislation might be introduced enforcing top-down affirmative action.More cost-effective to fill manpower pipeline with qualified minorities from previously disadvantaged groups.Process driven by senior management. Policies adopted, including comprehensive equal opportunity policies, input-based policies, short-term preferential policies, short-term output-based policies

Senior management accepted some of Afrocentric values as long as no negative impact on organisational objectives and productivity. Lower work standards accepted temporarily to reach personnel quotas. Preference still given to black employees who acquired modern work ethic.

Westernisation played a definite secondary role – employees only had to adhere to modern work values and behaviour. Socio-psychological model of modernisation was adapted – personal attributes were seen as codetermining the modernisation progress of employees. Employees self-motivated to participate in value changes.Escalator model of development was adopted – this set specific quotas for senior management positions.

Policy of full participation in decision-making, profit-sharing and greater transparency and openness was seen in most organisations. Participation of senior level management was seen as a priority. Previously disadvantages employees were empowered to participate in operation of businesses. Black employees contributed to strategic direction of companies. Employees and management communicated. Through affirmative action employees tested the limits of their decision-making powers.

Social investment programmes were a priority – it acted as a vehicle for empowering the previous disadvantages to participate fully in the economy and in organisation activities. Organisations budgeted substantial amounts for social investment programmes. Education, housing and medical benefits were still the main focus areas of these programmes.

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TOP-DOWN AFFIRMATIVE ACTION PARADIGM

Macro-environment Development approach

Managing of value differences

Modernisation focus

Development model

Employee participation

Social responsibility

Mind-set emerged when black majority ANC came to power. Affirmative action enforced by legislation. Quotas and time-limits set by government and ensured through some form of financial reward. Government striving towards non-racial society – all equal after pas justices are rectified. Reversed discrimination against formerly privileged whites is seen as justifiable discrimination.

Positional empowerment believed to be first step toward overall development of black employees. Black employees appointed in spite of lack of experience and confidence. Developmental policies that apply bottom-up paradigm also apply to top-down affirmative action paradigm. In top-down paradigm output-based policies carrier more weight.Development approach is based on expectancy theory, as it is believed that black people will develop their skill in the positions to which they are appointed.

Difficult to predict how value differences will be handled. Expected that black people in senior positions will promote Ubuntu and other humanness values and will thus change organisational cultures to become more people-orientated. Africanisation will probably take place to a greater extent. Still some fear that Africanisation will destroy modern work ethic, yet economic realities will inhibit SA organisations from fully adapting unitary Africanisation policies and valuing regression.

The socio-psychological model for modernisation applies. Accelerated modernisation will happen as result of more black people being appointed in senior positions. The displacement model becomes relevant as white people will have to be displaced to make positions available for black people. Productivity losses are predicted as a result of displacement procedures such as early retirement and retrenchment.

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Differences between top-down and bottom-up affirmative action

Top-down affirmative action Bottom-up affirmative actionEnforced by legislation Enforcement by consentPower primarily obtained through positional advancement

Power primarily obtained through personal growth and work skills development

Productivity and work standards often not considered in the empowerment of the disadvantaged

Productivity and work standards usually considered in the empowerment of the disadvantaged

Government-driven Senior management / organisation drivenPositional empowerment more important than work skills empowerment

Work skills empowerment and personality growth as important as positional empowerment

Reactive intervention Proactive interventionOutput policies slightly favoured over input-policies

Both input and output policies equally important

Barriers to affirmative action:

1. There is no commitment to or support for the process on the part of top management.2. There is covert and overt sabotage of the process by middle management.3. The objectives and success criteria of the affirmative action process are not established and

clearly communicated to all.4. The process is not part of the company’s strategic plan, or is not regarded as a strategic issue.5. Managers are not measured or rewarded for their performance in the affirmative action

process.6. There are no succession plans or individual career plans.7. There are no racial targets that is, targets for the employment of black people based on human

resource planning systems.8. The recruitment criteria used are not adapted to the selection of black people tests are

therefore mostly unsuitable.9. There are no clear job objectives, which leads to a situation of tokenism.10. Open and honest feedback on performance is not given. Because of the limited number of

suitably qualified black people currently available for senior positions, the risk of losing such employees and the fear of appearing racist often prevents employers from providing black employees with balanced feedback on performance. This, in turn, denies these employees the opportunity for growth and development.

11. The affirmative action process does not have measurable results.12. Not enough attention is given to the support mechanisms for mentors, coaches and others

involved in driving the affirmative action process.13. The issue of managing and valuing diversity is not entrenched trough orientation and cross-

cultural communication programmes and the organisational climate do not encourage these values.

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14. The emphasis is placed on short-term numbers – not on long-term development.15. The process is incorrectly managed as “black upliftment” and not “black empowerment” which

reinforces the myth of white superiority and black inferiority. This resulting in the rejection of the process by all rational employees.

MANAGING DIVERSITY PARADIGM

Reasons for managing diversity:

Broaden focus of affirmative action:A need to broaden the focus of affirmative action to include dimensions other than race and gender, as well as going beyond narrow descriptions of enforced vocational advancement of disadvantaged employees to include broader dimensions such as extended employee participation, economic empowerment, social investment, education and the general welfare of the disadvantaged. This also includes the need to create a corporate environment that would be inclusive of the different groups.

Acceptance of differences:Another reason for managing diversity is the acceptance of the unique characteristics of employees from different cultures. In order to build trust and tolerance, among the diverse employees and sensitivity to the specific needs of employees from other culture groups.

The need to manage emotional change:The need to accommodate and manage the psychological processing of deep emotional changes that result from transformation brought about by affirmative action. The management of diversity paradigm provides a suitable climate for working through expectations, uncertainty, fears, hatred, rage, conflict and other manifestations of a society in transformation.

Comprehensive management approach:The need for a comprehensive management approach, through which managers from any cultural group are assisted to manage, develop en empower employees from other cultural groups successfully.

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MANAGING DIVERSITY PARADIGM

Macro-environment Development approach

Managing of value differences

Modernisation focus

Develop-ment model

Employee participation

Social responsibility

Emerged when ANC came to power. Characteristics include:Economic success depends on sustaining democracy and uniting diverse ethnic groups;Pursuit of a non-racial society through a Bill of Rights and the recognition of eleven official languages; preferential treatment for marginalised black people; preservation of the free-market system and capitalism; introduction of adjustments to accommodate the values of black people; financial support for small businesses and some action by government to ensure redistribution of land and wealth; removal of all artificial barriers upholding any form of segregation.

Individual development only successful if organisational culture is created that supports individual development unconditionally. Managers will support development programmes if they perceive them as capable of improving the outputs or profits of organisation.Holistic approach is followed in which the development of employees, organisation and social environment is seen as an integrated whole and development programmes are beneficial to the whole organisation. Vocational education is emphasised. Both deterministic and expectancy theories are applied to teach basic cognitive skills. Development of marginalised employees can take place only if this is supported by upliftment programmes in communities.Organisation has become a partner of the government in job creation, education housing, health and other schemes.

Culture of value tolerance among different culture groups is promoted. Assimilation is replaced by intergroup accommodation of values. New synergistic organisational culture is developed with different value systems contributing to new culture. Based on shared values contributing to improved productivity.

Black and white employees have to accommodate one another’s values. Values like Ubuntu enhance the economic competitiveness in organisations. Modernisation is defined as the voluntary integration of mutually agreed-on Eurocentric and Afrocentric values into a new organisation. Seen as long-term process in which neither African nor European values will ever totally disappear.

Full employee participation and democracy is established as basic right. Participation is to enhance commitment. Tolerant organisational culture is promoted.

Social investment is extended to social involvement. Organisations are morally and financially involved in assisting previously deprived communities. Closely linked to RDP (Reconstruction and Development Programme).

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CHAPTER 3

ECONOMIC FACTORS NECESSITATING DIVERSITY

Globalisation

Many South African companies opened new branches in other countries. They are thus competing in the global market. International companies are also investing in South Africa. Global competition requires that the organisation tap the full potential of all its human assets. A diverse workforce is one way in which organisations are trying to align their global marketing strategies. Organisations incorporate individuals from other countries in the workforce to benefit from their expertise, rather than deploying their South African employees.

Global success is being able to conduct business in different countries with diverse values or styles, and this seems the most possible with a heterogeneous work team.

Managers must develop a new awareness in handling the unique challenges of global diversity – an awareness that rises above cultural standing, and which enables them to build new networks and understands geopolitical forces.

Globalisation of organisations has led to the need for a multicultural perspective so as to compete successfully abroad. In order to understand, attract and respond properly to a diverse customer base, businesses need to make their own workforce more diverse.

International competition

South African companies are faced with the challenge of competing internationally because they have invested internationally. When companies embark on international business venture, they usually grow and develop. These companies should employ people from the global workforce. Business values influences organisational practices and decisions and values in Western countries are different to those from Eastern countries. To develop and sustain competitive strength, companies should employ people with a detailed knowledge of multicultural values. Cultural differences interfere with the efforts of multinational managers to understand and communicate with those in other countries.

Successful operation abroad demands effective cultural adaptation of products, business practices, institutional arrangements, employment policies and personal attitudes. One of the important features that vary from country to country is their attitude towards time.

When an organisation has a diverse workforce, it is able to compete more effectively internationally because of the multicultural make-up of its workforce.

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Eastern Countries Western CountriesValue collectively and groupsValue family and respect for authorityValue cooperation and harmonyValue humility and austerity

Value individualityValue individuals and youthValue competition, conflict, confrontation and differencesValue immediacy and short-term resultsValue self-promotion and material wealth

SOCIAL FACTORS NECESSITATING DIVERSITY

Demographic changes

Demographic changes in the workplace take place because females, minorities, people of different ethnic backgrounds, aging workers, people with alternative lifestyles and foreign-born people are joining the workforce. These changing demographics of the workplace are also changing the demographics of the marketplace.

How well organisations deal with this demographic shift, will directly affect their business in future. Markets are becoming more segmented and more organisations are trying to find niches where they will have some competitive edge. Market issues make some organisations want to have an employee group that reflects the marketplace to a reasonable degree. The payoff is the ability to better understand and respond to customer needs.

The major social and economic changes in South Africa have been the increase in women’s employment, especially mothers. Although women’s labour market participation has increased rapidly and dramatically women tend to be concentrated in certain occupations and industries. They face horizontal and vertical segregation. Women work in more caring and nurturing industries, while men dominate management positions. This suggests that the increased participation by women has not led to increased equality for women in the labour market. The changing composition of the workforce is due to demographic changes of employees entering the workforce – in terms of gender, age, marital status, physical ability, religious belief and so forth.

America is also facing demographic changes. This has led to a widespread interest in managing diversity. Workforce 2000 data is considered a good source of information about the changing complexion of the American labour force.

Democratic society

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Pressure on organisations to diversify started before the new South Africa. Societal values are also contributing to the enhancement of diversity in organisations. People have equal rights even though they are different. The political transformation in 1994 meant new political structures for the country as well as the transformation of our social institutions. South African organisations are also expected to be part of the African Renaissance, which entails enlightening people on the African continent so that they can be pioneer, even in business.

LEGAL FACTORS NECESSITATING DIVERSITY

Employment equity act

The Employment Equity Act is aimed at providing equal opportunities in the workplace, irrespective of race, gender, ethnicity, age, national origin, religion and disability. The act has a dual purpose – on the one hand it is aimed at promoting equal opportunities and fair treatment in employment through the elimination of unfair discrimination and on the other hand it requires employers to establish representative workforce targets and basically implement an affirmative action policy.

The Act provides for diversity in organisations, especially in supervisory, middle and senior management positions, because its underlying intention is to provide all racial groups and individuals with equal opportunities and because it requires some form of affirmative action policy on the part of organisations.

The basic principle in implementing the Employment Equity Act is to ensure that the number and proportion of persons from the designated groups in the employer’s workforce is representative of the broader labour market.

The Department of Labour established the Commission for Employment Equity to fulfil the following functions:

To advise the minister on codes of good practice, regulations, policy and other matters concerning the Act.To make awards recognising the achievements of employers in furthering the purposes of the Act.To conduct research and report to the minister on any matter relating to the application of the Act.

Annual reports submitted to the Minister outlines the following key strategic objectives:

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Implementing strategies to increase procedural compliance with the Act by employers.Develop and implement systems to assess and enforce substantive compliance with the Act by employers.Simplify the employment equity regulations.Encourage online reporting systems to improve data collection and to ensure accurate and fully completed records.Promote constituency activism to strengthen the enforcement of the Act, including creating a conducive environment for whistle blowing.Enhance the organisational culture of stakeholders by promoting diversity management in the workplace and by conducting anti-racism campaigns.Adopt specific strategies to increase the representation of women and people with disabilities in employment.Create mechanisms to interface education and training with employment equity.Assess the impact of immigration on employment equity and adopt appropriate responses.Develop and implement communication strategies to promote employment equity.Ensure alignment of other relevant legislation or policies with the Employment Equity Act to strengthen its implementation.

Labour Relations Act

The purpose of the act is to advance economic development, social justice, labour peace and the democratisation of the workplace. It is also aimed at reducing discrimination against current and future employees of the organisation. Organisation will end up with a diverse workforce because employees and potential employees are being protected in the organisation by law.Just as employees have the right to freedom of association, so the rights of organisations and trade unions are also protected. Organisations have a diverse group of trade unions representing different employees in the organisation.

Skills Development Act

Two of the purposes of the skills development act include:

To encourage employers to employ persons who find it difficult to be employed.To improve the employment prospects of persons previously disadvantages by unfair discrimination and to redress those disadvantages through training and education.

To accelerate the implementation of the Act the Department of Labour developed the National Skills Development Strategy (NSDS). This spells out the national priority areas to which the project income will be allocated for the next five year. It also aggregates performance indicators through legally binding service level agreements and projects funded under the National Skills Fund. The mission of the NSDS is to contribute toward sustainable development, economic growth,

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development and equity of skills development institutions by aligning their resources with the skills needs for effective delivery and implementation.

The following are principles of the NSDS 2005-2010:

Support economic growth for employment creation and poverty eradication. Promote productive citizenship for all by aligning skills development with national economic

growth and development. Accelerate broad-based economic empowerment and employment equity. Support, monitor and valuate the delivery and quality assurance systems necessary for the

implementation of the NSDS. Advance the culture of excellence in skills development and lifelong learning.

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CHAPTER 4

BUSINESS REASONS / BENEFITS OF MANAGING DIVERSITY

Creating a culture which values differences between people requires major, systematic, planned change efforts. These plans are not typically part of affirmative action programmes, because affirmative action is based on legal compliance. Diversity management is a new organisational paradigm for managing organisational change – it moves beyond a human resource model based on legal compliance to a model that suggests there is value in diversity. The benefits of implementing this model range from concrete measurable savings to more intangible like increased morale.

With managing diversity in an organisation, the organisation is able to bring out the best in each employee, creating a productive workforce. Effectively managed diversity can also create a competitive advantage in the areas of cost, resource acquisition, marketing, creativity, problem solving and organisational flexibility. Managing diversity could lead to higher productivity which in turn would lead to higher profit.

1. Ethical considerations

Diversity issues have ethical considerations as their basis. Business decisions are based on individual, professional, organisational and societal values. The following ethical principles are proposed as being relevant to managing diversity:

Managing diversity is based on the popular golden rule that if you want to be treated fairly; treat others fairly.The managing diversity paradigm emphasises disclosure of information, open communication and transparency.It is ethical to assume that people’s dignity is based on their ability to freely choose what they will do with their lives, and they have a fundamental moral right to have these choices respected. Diversity management allows all people to reach their fullest potential by choosing career paths according to their interests and abilities.

If these ethical principles are removed, diversity management initiatives will collapse. These principles are part of good people management. However, management needs proof that these theories will not affect the bottom line negatively.

2. Organisational benefits.

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The following arguments for managing diversity to achieve competitive advantage are mentioned:

Cost: Reducing turnover and absenteeismResource acquisition: Attracting the best personnel as the labour pool shrinks and changesMarketing: Bringing insight and cultural sensitivity to the marketing effortCreativity: Increasing creativity and innovationProblem solving: Bringing a wide range of perspectives and more thorough critical analysisSystem flexibility: Reacting to environmental changes faster and at less cost

The following benefits are outlines of managing diversity based on an exploration of numerous studies undertaken in this regard:

Low labour, recruitment, turnover and training costsAttracting and retaining employeesImproved understanding of customer needsNew product developmentImproved employee relationsEnhanced public imageGreater creativityIncreased capacity among managers to establish and maintain inter-organisational relationshipsLower frustration levels among supervisors, leading to reduced friction and less unwanted disciplinary action

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The business reasons for, or benefits of, managing diversity can be grouped into either external or internal reasons. Internal reasons are those found within the organisation and external reasons are those from outside the organisation.

External reasons or benefits Internal reasons or benefitsCompetitionEconomic downturn/upturnDemographic changesEmerging marketsImageInvestor/donor satisfactionGovernment regulationPolitical correctnessProductionProfitabilityLawsuits

Growth and expansion goalsOrganisational mission and valuesOrganisational climateEmployer/customer satisfactionEmployee/management developmentContinuous improvementProgressive thinkingProfitabilityPerformanceComplaints

3. Discussion: Benefits of managing diversity

3.1 Access to talent, attracting and retaining talent

Fundamental argument for managing diversity is the benefit derived from recruiting, retaining and promoting the best people, regardless of their individual characteristics.

The changing demographic profile of the workforce has been a major impetus for organisations to ensure that they have access to the best of all available talent. Managing diversity assists organisations to retain employees from outside the traditional pool talent. When organisations manage diversity, they are able to attract all the talented employees they can find and recruit the best.

Managing diversity is seen as the provision of opportunities for all employees to express their individuality and cultural identity. Talent is retained in the organisation through managing diversity because such a strategy creates a work setting geared to the upward mobility of all kinds of people. The benefits of diversity which are thus realised entail not only attracting the best from a wide range of groups, but also optimising the potential of these recruits at each level in the organisation.

3.2 Increased organisational flexibility

One way in which a diversity-oriented organisation can ensure the retention of employees is through enhanced flexibility. As organisations become more diverse, there is more pressure to respond by being more flexible in all their processes, systems and procedures, and not only working hours.

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It is imperative that the terms and conditions of employment offered by organisations be responsive to individual needs. If not, organisations run the risk of failing to meet the human resources demands of the 1990’s. Ross and Schneider put it: “If there is not sufficient flexibility within an organisation, the best will go elsewhere.”

More can be achieved for the organisation by adopting a more strategic approach to organisational flexibility. The benefits can be achieved by following this approach include, higher levels of psychological engagement, increased work performance and, ultimately a more responsive, adaptable environment.

3.3 Lowered turnover and absenteeism

There is an assumption that organisations that manage their diversity effectively can improve their retention rates for different groups of people, thus reducing turnover and absenteeism costs. The introduction of flexible working practices has also provided evidence of benefits to be gained from managing diversity, especially in terms of reduced turnover and absenteeism. In respect of women, improved retention rates were noticed by offering flexibility in work hours and practices; absenteeism has reduced by the provision of child day care and introduction of flexi time.

3.4 Improved team effectiveness

One of the strongest reasons for adopting diversity is that it brings a richer variety of ideas into an organisation and enhances creativity in the organisation. It will lead to improved creativity, innovation, problem-solving and decision making within organisations. There will be a heterogeneous team instead of a homogeneous team. A diverse team has better quality solutions on brainstorming tasks and display more cooperative behaviour. Heterogeneous teams are believed to create solutions to work and business problems that are more innovative and effective and evidence to support this is based on research findings.

The findings that heterogeneous team are more effective:

Are more successful, but homogeneous teams are also successful when they consist of stable extroverts who enjoy working in teams and whose roles may be undifferentiated, and when they consist of many talented peopleShow increased innovationAre better at solving problems and overcoming obstaclesAre more creativeHave better quality solutions to assigned problems

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It does not appear possible to assert on the basis of the research findings that diversity will, in itself, lead to improved team performance. The effectiveness of a team depends on a wide range of factors, not just on whether its membership is heterogeneous.

The following also have an impact on team effectiveness:

The nature of the task The ability of team members The personality traits of team members The length of time the group stays together The urgency of the task The organisational roles of the team members The team leader

In managing diversity the challenge is to get the best and not the worst out of a team’s differences. This will lead to ways of improving individual, interpersonal and organisational effectiveness. Managing diversity involves respecting employees and empowering them to participate in decision-making, training them to use a variety of tools to solve workplace issues, and training them how to work together effectively in teams.

3.5 Increased quality

Management of diversity is thought to translate into successful total quality management (TQM). The argument is based on the rationale that TQM not only requires an organisation’s systems and regulations to be reviewed and improved, but al so that this approach be supported and implemented by all its employees. If organisations fail to manage diversity, there will be discrimination, lack of support for employees and a lack of opportunities for career progression which in turn will reduce the quality of service and demotivate employees.

3.6 Improved customer service

Managing diversity is thought to enable an organisation to get closer to its customers and thus improve customer service. This contention is based on the premise that the workforce becomes more representative of the customer base that the organisation serves. It is also based on the principle of effective communication being crucial to business success. Organisations that understand their markets obviously have a competitive advantage over those that do not.

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3.7 Productivity

Despite the fact that there are no solid research findings to show a definite link between managing diversity and bottom-line productivity, increased productivity seems to be an indirect benefit of managing diversity. Things like increased team effectiveness, talent retention and better communication – it can be assumed that productivity will increase. Achieving business success is possible through managing diversity and hiring the best diverse workforce available. Workforce diversity is a reality and its aim is to improve productivity in organisations rather than to comply with legal requirements, meet moral responsibilities or respond to internal and external group pressures.

3.8 Competitiveness

It is imperative that organisations rethink their approach to diversity because of global and domestic competitive realities. Few organisations have escaped the pressures of worldwide competition, globalisation and a marketplace which is already diverse and will become more so in the future. To survive, organisations should become more flexible and adaptable as regard to environmental changes, and they should adapt to different communities and customer bases.

An organisation that effectively manages its diverse workforce is able to compete effectively in the diverse marketplace because it has a better and more flexible understanding of its diverse customers.

A customer-driven organisation is possible only when diversity-based management systems are in place that values every person for what they can contribute to the organisation’s vision. Through diversity management the workforce will be representative of the community that is served by the organisation.

4. Evidence to support the business argument for managing diversity

There seems to be a lack of research-based evidence proving the legitimacy of the benefits claimed. This does not mean that it is misleading or inaccurate. Below are the most frequently cited benefits that have examined the available evidence in support of the perceived benefits. It is broken down into three categories; proven, debatable and indirect.

The proven benefits of diversity are those that are an inevitable consequence of becoming a diversity-oriented employer. They include:

Recruiting from a wider range of talented candidates Retaining this talent The associated savings from lower staff turnover and absenteeism

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The debatable benefits are those thought to result from having a mix of people with a wide range of styles, backgrounds, personalities in the workforce. The majority of these benefits are indicated by research into teams, which essentially shows that heterogeneous or diverse teams outperform homogeneous teams. Another two debatable benefits that do not rely on such research include:

Increased quality Improved customer orientation and service..

The indirect benefits are those believed to result when the direct and debatable benefits have been achieved. They are thought to be a logical consequence of having an organisation in which the best possible candidates are selected, developed and retained and in which quality of service and output are maximised.

The indirect benefits are based on a rational argument that can be represented in the form of a flow chart. Many of the indirect benefits could easily be those expected to result from any organisational change initiative. It is therefore difficult to find solid evidence. Because of this problem of causality the indirect benefits are tenuous and the links may never be firmly established.

PROVEN BENEFITS DEBATABLE BENFITSThe organisation employs the best possible candidates from across the board.The organisational culture is one in which the potential of all employees is realised.Flexible working arrangements are offered.Employees are valued, motivated, developed and encouraged to progress upwards through the organisation.Employees will be reluctant to leave.

Employees will give their best.Employees are more in tune with their customer base.There is enhanced innovation, creativity and problem solving.Customer service is better.There is improved quality.

INDIRECT BENEFITSThe organisation has a better public image.The work environment is satisfying.There are improved relations among staff.Job satisfaction and moral will increase.There is increased productivity.The organisation has a competitive edge.

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CHAPTER 5

USING A SYSTEMS APPROACH TO MANAGE DIVERSITY

Managing diversity is more than merely valuing the differences among people. It is not primarily a human relations issue, but a strategic business issue incorporating an approach with a variety of strategically aligned practices and interventions. Acceptance, mutual tolerance and respect among different people are important, but not sufficient in creating an empowered workforce. Managing diversity initiatives implies practices and interventions at all organisational levels to ensure systematic, holistic and strategically aligned organisational change. Managing change forms and integral part of managing diversity. Figure 5.1 shows a systems model to understanding diversity dynamics.

For this model, various aspects become clear:

The organisation’s diversity climate is collectively defined by individual group and organisational level diversity factors.

Managing diversity involves an awareness and understanding of diversity factors, on all levels, which may act as barriers to working effectively with differences in the organisation.

Managing diversity should involve transformation interventions at an individual, interpersonal and organisational level.

Individual Interpersonal Organisational Self-awareness – broadening

the diversity focus Shared and unshared values Racism, sexism, prejudice

and guilt Paradigm shift to viewing

and managing diversity as an asset

Responsibility for self-development and empowerment

Skills development Accountability and individual

ownership Career progression Accepting, respecting and

valuing diversity Language and

communication training

Stereotyping Cultural assumptions Subtle and overt career

sabotage Communicating the

underwritten rules Dynamics of communicating

across diversity Managing resistance, conflict

and expectations Development of trust and

respect Support systems, eg.

mentoring systems Innovation through diversity

interaction Facilitating communication

across levels

Implication of changes in demographics and the socio-political environment

Diversity of the organisation and the marketplace

Beyond a culture of “one size fits all”

Individualising – not standardising policies, systems and practices (eg. Recruitment and selection, career development, performance management)

Role of leadership and change agents

Organisational development and the learning organisation

“Membership of club” Glass ceiling

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Managing diversity at an individual level

Perceptions: How people differ in their interpretation of the world

People interpret what they hear and see in the world as they perceive it and not really as it is. This relates to the fundamental question about truth and reality. Many studies have shown the important impact of perception on behaviour. Results have shown that employees who perceive their jobs as challenging and interesting display higher job satisfaction and motivation – leading to better job performance. Perception generally relates to how people interpret their world of experience as well as how they act upon their perceptions. There are many barriers to the accurate perception of other people and their behaviour, such as selective attention, denial, the halo effect, stereotyping and projection. These are based on the unique characteristics of the individual, such as values, beliefs, norms and attitudes.

The perceptual filter of an individual, which consists of that individual’s unique values, norms and beliefs that actually determine their perceptions and which constructs his or her experiential reality. People tend to perceive according to what they believe is right or wrong, acceptable or not acceptable, as well as to what they value as important or not. People judge subjectively. Perceptions are distorted daily by mental processes such as stereotyping, projection, the halo effect etc.

Stereotyping:Your group identity is a personal affiliation with a group with which you share certain common social or cultural characteristics. On the one hand, you develop a self-identity based on your affiliation with various groups, that is, your perception of yourself is formed to an extent by identifying with various groups of people in your life. On the other hand, people also ascribe group identities to other people, for example people may see you as someone belonging to a particular religious group. Stereotyping may then occur when someone’s judgement of another person is based on that person’s affiliation to a particular group. Group identities have certain commonalities that relate to primary and secondary diversity dimensions. These then become the basis for commonly held stereotypes. Avoidance of stereotyping is of particular importance in managing diversity, as stereotyping can result in incorrect judgements based on people’s attributes that align them with a particular group of people, be it on the grounds of race, gender, occupation etc.

It is necessary to be aware of people’s differences, which are inevitably associated with various group identities. This does not mean that we are perpetuating stereotypes, but that we are becoming aware of the effect of differences across and within various social and cultural groups. There is a difference between stereotyping and valuing differences:

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STEREOTYPING MANAGING DIVERSITY – ATTENTION TO CULTURAL DIFFERENCES

Frequently based on false assumptions and anecdotal evidence, or even on impressions without any direct experience of a group

Based on cultural differences that have been verified by empirical research on actual intergroup differences

Ascribes traits to members of a group Views cultural differences as positive or neutralInvolves the assumption that characteristics thought to be common in a cultural group apply to every member

Based on the concept of greater probability

Ex: Suzuko is a Zulu princess, therefore she is regarded as aggressive by white male standards

Ex: As a group, Zulu women tend to be less aggressive than white males

The attribution theory provides another explanation for distorted perception. Attribution theory describes the process by which people ascribe causes to the behaviour they perceive. A major finding of attribution theory is that people tend to give relatively little weight to the circumstances when they judge other people. People are more likely to attribute a person’s actions or results to personal characteristics such as appearance than to circumstantial forces. A manager who pressurises employees to deliver a particular output in time is thus more likely to be perceived as impatient and autocratic rather than as caught up in a serious deadline. Another finding of attribution theory is that people tend to attribute their achievements to their good inner qualities and their failures to adverse factors in their environment. A manager will be more likely to attribute record production to his own good leadership qualities and poor production to the lack of resources in the environment.

The mental process of perception and how it influences the way in which people behave may be summarised as follows:

People perceive other people and situations based on what they value and what they believe is right and acceptable.Then they make certain assumptions and judgements about the person or situation and respond accordingly.Values, beliefs and norms form the lenses through which we perceive and filter our experiences, and our responses usually tend to confirm what we believe and value.

Furthermore, values, beliefs and norms tend to be subconscious and automatic, whereas our actions and judgements are more conscious. The stereotypes that we hold are therefore also deeply rooted in what we value and believe as opposed to what others value and believe.

Resistance to change

A person is inclined to resist change because it is not easy for people to change their values, beliefs and attitudes. These are so deeply rooted and subconsciously maintained that a person’s natural reaction is to resist a situation or action that potentially opposes or confronts their value/belief system. It is an emotional, and subsequently behavioural, response to real or imagined threats to an established or accepted way of doing things. Resistance to change hinders adaptation and

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progress and serves as a strong catalyst for interpersonal conflict. Resistance to change will have an adverse impact on diversity management.

The following list is the sources of resistance to change at an individual level:

When attending a course over a period of time, people tend to choose the same chair to sit in. Because of the variety of decisions and choices that we make every day, some structure and order is achieved through habit. When confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.

Any kind of change is loaded with uncertainty and ambiguity in terms of what the standards and expectations for behaviour are. Familiar situations are replaced by this uncertainty and people fear the implications of the new situation, as they can only make assumptions as to what it entails. These assumptions are based on beliefs they have acquired through previous experiences or actions.

Fear of failure goes hand in hand with fear of the unknown. People do not know whether they will succeed or be regarded as successful in their new situation.

People with a high need for security and job status are likely to resist change because it threatens their feelings of safety. People might also be concerned that changes will decrease their salary and material wealth. Changes in job tasks or established work arouse fears because people are concerned that they won’t be able to perform the new tasks or routines to their previous standards.

Research on perceptual barriers to occupational advancement and development of previously disadvantaged groups

A lot of research has been done with regards to the attitudes of people towards black occupational advancement strategies such as affirmative action. Research shows a positive attitude among whites with regard to the principles that underlie affirmative action, equal employment opportunity and the development of black employees, but there is a negative perception and negative expectation with regard to their level of competence.

Stereotypes and biased assumptions regarding previously disadvantaged groups in South Africa are maintained despite radical changes in the demographic profile of the management corps in the country.

Research done on managerial attitudes confirms the principles that underlie the basic theory about perceptions, namely that people have a particular frame of reference or paradigm, based on their underlying beliefs, values, from which they perceive the potential competence of other people. Some have recently started to refer to this as a person’s developmental paradigm, which determines how a person regards the development of people from previously disadvantaged groups.Managing diversity at a group level

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People are socially inclined. Groups share common beliefs, norms and expectations. A group is commonly defined as two or more people who interact, share common beliefs, norms and expectations and work toward the attainment of a mutually important goal.

The dynamics of group norms and values

Groups go through a maturation process. They grow and develop through different stages to develop, maintain and enhance the purpose of existence of the particular group. As the group go through the maturation process, they learn to share more and the way they perceive things. The formation of group norms during the group development process is important to determine the extent of group cohesiveness. The individual becomes part of the group through enforcement of role expectations and norms. Norms develop in a variety of ways, ranging from subtle suggestions to direct communication and from informal to more formal interaction means such as procedures and policies. Norms evolve as a result of a person’s natural tendency to forms groups and affiliate and associate with other people sharing some common interests, purposes, needs, values and expectations.

Values refer to people’s beliefs about how things are and how they should be. Values incorporate that which a person deems valuable – they represent their needs, preferences and moral ideals. Values are thus not ideal states or choices of an individual, but rather the preferences that a person holds both consciously and subconsciously. Values underlie the formation of perceptions, beliefs and norms, which ultimately direct behaviour. When people form groups, they eventually come to share a specific set of values, which determine how they view other people who are not part of their group and which also determine their behaviour towards other people.

Group formation relates to the development of subcultures within an organisation. People who share specific sets of values, beliefs and norms may also form a subculture within an organisation. This may be in direct conflict with enhancing diversity in the work group as well as in the organisation as a whole, especially if the subcultures lead to stereotyping, bias and exclusion of other people.

Other interpersonal barriers

For obvious reasons related to misunderstanding between people, language can act as a barrier to working effectively across differences within a group. Nonverbal language has been shown to be culturally developed. Body stance, body smell, gestures, facial expressions, eye contact and the loudness of voice are all aspects that differ in terms of their acceptability in different cultures and may act as potential barriers to cooperation and productivity in a work group.

Stress acts as a barrier to interpersonal communication because people exercise less self-control when they are under stress and they regress into deeply seated stereotypes. When a person is

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stressed, they tend to think irrationally and to make assumptions based on previously adopted stereotypes.

Managing diversity at an organisational level

One reason why managers find it difficult to manage and change their organisational culture is because organisational culture is an abstract concept, the underlying dynamics of which manifest primarily at a subconscious level. Organisational culture refers to “the way we do things around here”.

Organisational culture

Organisational culture refers to the pattern of shared meaning, values, beliefs and norms about work-related behaviour that distinguishes that organisation form another. Shared meaning is that which the organisation values.

Schein defines organisational culture as:

“Organisational culture is the pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integrations, and that have worked well enough to be considered valid and therefore be taught to new members as the correct way to perceive, think and feel in relation to these problems”.

From the definition is it clear that organisational culture has three important characteristics.

1. Organisational culture influences the behaviour of employees at work, including how they react and respond to other employees in or outside the organisation.

2. The shared values and beliefs that underlie and organisation’s culture have an enormous impact on the organisation’s ability to adapt to change. Culture therefore also plays an important role in organisational resistance to change.

3. Culture represents the normative behavioural patterns adopted by employees, that is, what they deem acceptable or not, what they regard as effective and above-average performance and what type of leadership styles they regard as appropriate and what not.

Culture performs a number of functions within an organisation.

1. It has a boundary-defining role – it creates distinctions between one organisation and others.

2. It conveys a sense of identity for organisation members.3. Culture facilitates the generation of commitment to something larger than one’s individual

self-interest.

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4. It enhances social system stability; culture is the social glue that helps hold the organisation together by providing appropriate standards for what employees should say and do.

5. Culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of employees.

Culture defines the rules of the game. Culture is a barrier to change when the shared values are not in agreement with those that will further the organisation’s effectiveness. When an environment is undergoing rapid change, an organisation’s entrenched culture may no longer be appropriate. Consistency of behaviour is an asset to an organisation when it faces a stable environment, but may burden the organisation and make it difficult to respond to changes in the environment.

Culture can also be a barrier to diversity. Hiring new employees of different race, gender, disability are not like the majority of the organisation’s members create a paradox: management wants new employees to accept the organisation core cultural values. But organisations also seek out and hire diverse individuals because of the alternative strengths these people bring. Diverse behaviours and strength can also be a liability when they eliminate those unique strengths that people of different backgrounds bring to an organisation. Strong culture can also be a liability when they support institutional bias or become insensitive to people who are different. In order to change employee behaviour, a change in the corporate philosophy and subsequent corporate practices is needed.

Organisational policies, practices and systems

Organisational policies, practices and systems set the context for employee relations within the organisation. It is also invariably associated with the organisational culture and become the visible evidence of the organisation’s underlying culture. When organisational policies, practices and systems support or communicate disrespectful, rigid, unequal or inequitable managing of employees, these become another barrier to managing diversity effectively. Unequal opportunities in terms of selection, promotion, training, recognition and reward as well as structuring of work hours, are evidence of practices that act as barriers to diversity at an organisational level.

Resistance to change at an organisational level

The definition of organisational culture insofar it pertains to shared values, beliefs and norms constitutes and obvious platform for organisational resistance to change. Robbins has identified the following sources of organisational resistance to change:

Organisations consist of established structures, procedures and systems to maintain stability and are managed to fit the values of the organisation. The selection process systematically selects certain people while rejecting others. Training and other socialisation techniques reinforce specific role requirements and skills. Job descriptions, rules and procedures for employees to follow are established guidelines in terms of behaviour. Within these procedures and processes, it might be

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that diversity is resisted in that only people from a specific group may be seen to be competent is a particular job.

Organisations are made up of various departments and groups of people that are grouped according to their functions and objectives. These form independent subsystems within the organisation. Because the different subsystems are interdependent, change in one necessarily affects the status quo of the other departments. Changes in one department might be accepted and even planned by the employees within the department, yet the effect thereof is not accepted by employees in other departments. Change is one department can be resisted by other departments to the extent that the planned change cannot be sustained.

Individuals may resist change in other individual’s behaviour because they oppose the effect that it subsequently has on them. One individual in a group might decide to change their behaviour, but the group norms may act as a constraint. For example if one individual union member accepts changes in their job as suggested by management, but the union norm dictate resisting any unilateral change made by management, the individual will most likely resist the suggestions made by management.

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CHAPTER 6

Learning diversity competence involves the challenge of self-reflection and self-development. Diversity involves not only learning about other cultures or differences between men and women, but to learn and understand your own diversity paradigm. The self-discovery process is sometimes challenging because it is sometime uncomfortable to identify and acknowledge your own prejudices and stereotypes.

Approaches to diversity

Here follows a summary of five approaches from the least effective to the most effective.

1. Representation (numerical focus)Managers seek to meet numerical representation prescriptions as to who should be included. The goal is not diversity but the inclusion of representative numbers of the various groups that make up the larger community. This approach is most often motivated by legal considerations. Affirmative action is an example of this.

2. Representation (attribute diversity)This approach focuses on ensuring that a given mixture of people contains an appropriate representation of attributes. Examples would include the company that is forced to consider it’s racial and gender workforce representation because of pressure from customers, or the team leader seeking to ensure that their team’s composition is appropriate for the nature of its tasks. This inclusion, which is motivated by business considerations, has inherent value.

3. Understanding differencesThis approach seeks to ensure that the relationships between the people in a specific mixture are appropriately respectful, harmonious and sensitive. The goal is to foster understanding and acceptance of differences so that tension and conflict can be minimised. A central assumption is that the greater the harmony within the mixture, the more likely it is that productivity will be optimised.

4. Managing workforce diversityThe emphasis is on the manager’s ability to access the talent of an increasingly diverse group of people. A key question is whether organisational practices and systems based on assumptions of homogeneity will work in the midst of diversity, or will it be necessary to do business differently as the workforce becomes more diverse? If these practices and systems cannot accommodate a diverse workforce, this approach prescribes diagnosing and changing organisational culture accordingly. The notion that managers and their organisations may have to change significantly differentiates managing workforce diversity from the three previous approaches discussed above.

5. Strategic diversity management

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This approach enables managers and individuals to address any diversity mixture. Accordingly, it represents generalisations from the previous approaches that have primarily targeted the workforce. As managers come to understand diversity in its true sense, they will need tools for addressing mixtures other than the workforce. Strategic diversity management meets this need.

The financial results and forecasts of the organisation have a major impact on how diversity is approached. Most organisations set targets with a numerical focus, whereas it should rather follow the strategic diversity management or managing workforce diversity approach.

Different value orientations

Research has shown that values based in various cultural groups differ and influence individual employees’ work related attitudes and behaviour. People also differ because of differences in gender, historical background and religion and this also influence an individual. People also differ because of acculturation to the mainstream culture.

Below are six different value orientations that consist of two different perspectives. People usually tend to lean more towards one of the two perspectives within each specific value orientation.

1. Individualism versus collectivismIndividualism has to do with the strength of ties that should exist between individuals. Individualists believe that such ties should be loose and that individuals should look after themselves and their immediate family. In contrast, collectivism believes that people should belong to in-groups or collectives which should look after them in exchange for their unconditional loyalty. In collective cultures people are integrated into strong, cohesive social systems throughout their lives.

2. Power distancePower distances reflect the degree to which the less powerful member of a social system believes that power should be distributed in the system and accept this distribution. In high power-distance cultures, it is believed that there should be clear superior-subordinate differences in power. There is often a great deal of dependence of subordinates on supervisors and a clear hierarchy of authority in organisations. In low power-distance cultures, there is limited dependence of subordinates on supervisors and there is a preference for consultation or participation in decision making.

3. Achievement orientation versus ascriptive orientationIn achievement-orientated cultures, accomplishment serves as the basis for an individual’s identity and the status he or she is accorded by others. Accomplishment is often measured by economic wealth or material possessions. In contract, ascriptive-orientated cultures, people tend to attribute status to others on the basis of factors that are beyond their control, including

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gender, family connections and inherited wealth or title. Such cultures to show respect for supervisors is important. Wisdom that comes with age is often highly valued.

4. Universalistic versus particularistic orientationUniversalistic cultures tend to follow a set of universal codes of practice and rules that are applied uniformly to all people. They value literal adherence to contracts and favour rational decision making. Particularistic cultures place more emphasis on relationships and are willing to “bend the rules” to accommodate particular circumstances and individual needs. They feel that decisions about other should take into account friendships with them. Many western cultures subscribe to a universalistic orientation and believe that organisational rules or policies are fair only when they are applied in a standardised fashion. Eastern cultures often subscribe to a particularistic orientation and believe that policies are fair when they consider the specific needs of individuals.

5. Time orientationTime orientation refers to a culture’s view about time and the emphasis placed on the past, present and future. Some cultures view time as a linear concept and place a great deal of emphasis on efficiency and punctuality. Within these cultures, punctuality is associated with success and likeableness, and the view that time should not be wasted is evidenced by the well-known phrase “time is money”. However, other cultures have relatively flexible views about time and make allowance for wide margins in judging lateness; individuals may be considered to be “on time” even if they arrive well beyond an expected arrival time. The quality of interpersonal relationships is considered more important than punctuality.

6. Communication styleCultures vary considerably in terms of several aspects of communication style. These differences often result in misunderstandings in organisations. Communication style can be viewed in terms of two basic elements: 1) the goals of communication and 2) the directness of communication.

There are cultural and subcultural differences in the goals associated with communication. In collective cultures, maintaining harmony and saving face are important goals of communication and individuals who promote smooth or pleasant social relationships by showing empathy and respect for the feelings of others are highly valued. In contrast, members of the individualistic cultures are more concerned with communicating the truth and with basing their arguments on facts and rational decisions.

Cultures may also vary in terms of directness of communication. People in collective cultures often use indirect forms of communication and don’t often get directly to the point. They also place great value on non-verbal communication. People in individualistic cultures emphasise verbal communication and are direct in the communication style. They prefer to talk about

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tasks and other non-personal issues. Members of collective cultures, therefore often consider individualistic cultures as rude and impolite.

Competencies required working with diversity

1. Interpersonal skills to enhance diversity competence

Chrobot-Mason and Ruderman define diversity intelligence as the ability to function effectively in a diverse work context where the assumptions, values, beliefs and norms of one’s upbringing are not uniformly shared by other people in that work group. The three essential competencies for working with diversity are:

Knowledge of cultural or value differencesIncreased self-awarenessVarious multicultural skills

Multicultural skill DescriptionConflict Management Inherent in any diverse work group is the potential for conflict due to

misunderstanding based on differing perceptions and values. Managing conflict is therefore an essential skill in working with other people and also when managing people who differ, and as a result, have conflicting interests. Leaders will manage diversity most effectively when they are able to understand and attend to different perspective and interests within a conflict situation.

Interpersonal communication It is important for everyone who wants to make a difference in terms diversity to engage in open and two-way communication with people from different backgrounds. One of a manager’s challenges is to encourage and facilitate open and meaningful exchange of ideas and opinions in a diverse work environment. Although it is easier to listen to people who think the same as you do, diversity competence requires you to listen with an open mind to different perspectives and attempt to understand them.

Feedback-seeking To work effectively with difference, you constantly need to seek feedback from others to evaluate your own behaviour and the impact thereof on other people. How you are experienced and perceived by others is as important as how you understand their differences. Even with the best intentions, you may at times offend people unconsciously, yet by seeking feedback you will become aware of when and why this happens, enabling you to restore peaceful relations.

Role modelling Being committed to managing diversity means that you will show, through your actions and words, a commitment to enhance and embrace diversity in all aspects of your work. Create and maintain relationships with co-workers who are different, and speak out with regard to systems and practices that my hinder diversity. Always be open to new ways of doing things.

In order to develop these skills, certain micro-skills are important.

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The following list of micro-skills is indispensable to diversity competence:

Be non-judgmental Be flexible Be resourceful Personalise observations Pay attention to thoughts and feelings Listen attentively Observe carefully Assume complexity Tolerate the stress of uncertainty Exercise patience Manage personal biases Keep a sense of humour Show respect Show empathy

The diversity competence of leaders and managers

The following management attitudes and skills are requires, as well as the processes needed to change managers’ behaviour and to enhance their diversity competence.

Attitude and skill needed The process requiredIncrease cultural self-awareness Involve managers and leaders in the process of

managing diversityEnhance understanding of cultural differences Involve managers in a diversity planning workshop

Learn about other cultures in the workplace Adjust existing management training programmes to include significant sections on managing diversity

Change management skills Enhance manager’s ability to manage all people

Mentorship Train manager in mentorship skills

Continuously communicate, discuss and evaluate progress with all managers.

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CHAPTER 7

Reasons for failure and success of diversity management initiatives

Reasons why diversity initiatives fail What is needed for a diversity management initiative to be successful

Diversity management are driven from the human resources or employment equity offices as a human resource or employment equity project.

The managing diversity strategy in the organisation should be driven by a steering committee that is represented by all sections and levels within the organisation. It should be the responsibility of the whole organisation.

Diversity training is initiated from a social or moral responsibility perspective.

Diversity initiatives should be based primarily on a sound business case. Business performance goals should drive the organisation’s strategy with regard to introducing management of diversity, despite the fact that it is also implicitly facilitated by moral, ethical and legal justifications.

Diversity initiatives are driven as a human resources development or employment equity project.

Managing diversity should be a holistic long-term change process, integrated with all aspects of the business, its policies, structures, HR practices and its culture. According to O’Mara defining diversity strategy as a process allows business to develop a natural capacity to tap the potential of all employees. This capacity naturally evolves by aligning all human resource practices and policies with the overall diversity management strategy. For example the recruitment and selection strategies should attempt to diversify the talent pool without compromising standards and fair, unbiased selection will support a diverse workforce.

Diversity training has management support, but not its commitment.

Top management should be visibly involved and participate actively in the entire process of managing diversity – from the planning stage through to maintenance and renewal. It is emphasised that little will change if top management does not commit real time and pursue tangible diversity targets. Successful diversity initiatives usually have an appointed senior-level advocate or champion.

Off-the-shelf diversity training programmes are bought and implemented. These training programmes are being developed and facilitated solely by external consultants.

The diversity strategy is a long-term process that includes constant assessment of whether the organisation’s systems, practices and policies are relevant to the diverse needs of its workforce and customer base. Customised training programmes should be designed as part of diversity initiatives to meet the unique needs of a specific employee corps. Diversity initiatives should be based on a need analysis. A diversity audit could identify diversity issues unique to the particular organisation and gauge its culture. Training should not rely on external expertise; internal involvement will communicate ownership and commitment and will identify the needs of the employees. Should training fail, the organisation should also take accountability. Successful diversity initiatives are developed in partnership between internal employees and external subject –matter experts or consultants.

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Reasons why diversity initiatives fail What is needed for a diversity management initiative to be successful

Diversity training initiatives build an awareness of diversity, but provide no skills, competencies or everyday tools for working with diversity on a daily basis.

Managing diversity in the workplace has become a business necessity. Managers are not competent in working with diversity at the various levels in the workplace. Flexibility as a core skill is important in managing. Diversity training should empower employees to transfer learning form the classroom to the workplace by means of relevant and useful skills and tools.

Diversity training initiatives have no follow-ups.

Diversity training initiatives should be followed up in terms of their impact and employees should be continuously empowered through on-going diversity awareness campaigns and the sharing of diversity success stories.

Implementation of diversity initiatives has no effect on the corporate culture.

A corporate culture should be developed that supports diversity management. It should be open to continuous development and that values diversity is essential for the success of all diversity initiatives.

Pitfalls in respect of diversity initiatives

Various barriers have been identified that can cause a diversity programme to fail.

RacismRacism, sexism and other “-isms” still plague the workplace, and these keep people from fully accepting efforts to manage diversity.

StereotypesStereotypes are fixed, and distorted generalisations are made about all members of a particular group. These positive and negative images are influenced by perceptions, attitudes and behaviour. All people are guilty of stereotyping, which acts like a filter and helps to avoid mental overload.

PrejudicePrejudice is an antipathy based upon faulty and inflexible generalisation.

DiscriminationDiscrimination is the denial of equality. The effect of discrimination is to exclude people from benefits because of a quality such as skin colour, gender or age.

Conflicting value systemsPeople tend to feel comfortable with people who are similar to them and uncomfortable with those who are different. Values tend to be relative stable and enduring. A value system is a hierarchy based on a ranking of an individual’s values in terms of their intensity.

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Resistance to changeBoth advanced industrialised and developing countries are changing in important ways that have a significant impact on organisations and their members. Some of the pressures for change in South Africa are:

Globalisation Information technology Changing nature of the workforce Legislation

Resistance to change can take many forms, for instance:

Reduced turnover High turnover Absenteeism Less motivation Lower morale High accident or error rates Strikes Employee grievances and disciplinary actions

Fears among white and black people

There are five generic fears among white people which inhibit the effective management of diversity:

Fear of black revenge or retribution Fear of not finding/losing jobs owing to affirmative action Fear of anarchy or poor standards Fear of punitive taxation or redistribution of wealth Fear of nationalisation

There is also fear among black people in South Africa:

Fear of being labelled a sell-out Fear of being sold out Fear of co-option (of being included in the white group) Fear of white manipulation Fear of victimisation Fear of being a token (window dressing) Fear of being marginalised

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Affirmative action implications

Some of the obstacles to implementing diversity are:

A black lash from whites who protest about reverse discrimination, tokenism and favouritism.

Poaching of black employees Job-hopping of qualified and skilled black employees Window dressing – the appointment of persons from previously disadvantaged

groups in special positions where they do not have any authority

Lack of overall strategyTo benefit from diversity as an important organisational rescue tool, management must:

View the management of diversity as an important business issueUnderstand the key issues in a multicultural workforceDevelop competencies required to manage individuals from different racial and cultural backgroundsManage diversity as a total change process, which included organisational issues such as:

Culture Work environment Organisational studies Management styles Policies and procedures Employees’ attitudes Role of human resource departments

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Essential organisational strategies

Commission of racial equality in America has devised a 10-point plan with various suggestions to ensure that managing diversity becomes an integral part of the organisation’s structure and processes:

a. Developing policies to cover recruitment, training and promotionb. Action plans with specific and measurable targetsc. Pan-organisational awareness training and additional training for those staff involved in

recruitment, selection and trainingd. An organisational diversity audit to establish the current position and enable progress to be

monitorede. A review of all recruitment, selection, promotion and training processesf. The formulation of job descriptions for all rolesg. Where appropriate, the offer of pre-employment training to prepare job applicants for

selection tests and interviews, and consideration of positive action to encourage under-represented groups to apply for vacancies.

h. Consideration of the organisational image and determination of whether a more positive image could be presented

i. Consideration of more flexible working arrangements and determination of what specialist equipment is required for disabled employees

j. The development of closer links with local community groups, schools and other organisations

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CHAPTER 8

Diversity models

1. Cox’s model for work on diversity

Cox argues that the change to a multicultural organisation involves activities in each of five components. The model makes clear what changes to organisational practices and policies must occur for an organisation to become multicultural. The five components are:

LeadershipResearch and measurementEducationAlignment of management systemsFollow-up

There are multiple activities representing each component. See figure 8.1. (Important) According to Cox success at diversity management can be assessed by examining an organisation’s progress with each of the five components. Progress is likely to be uneven, because the organisation my advance faster in the leadership component and then develop the education component. To become a multicultural organisation requires a systematic approach to diversity management, which necessitates advances in each of the five components.

2. Thomas’s managing diversity model

Thomas has devised a managing diversity model based on an understanding of some of the generic principles that have been found to work both abroad and in South Africa. The model sets out six phases in a managing diversity all levels in the organisation:

Individual phases (phases 1 and 4)Interpersonal phases (phases 1, 2, 4 and 5)Organisational phases (phases 2, 3 and 5)

The model aims to develop multiculturalism within organisations, the outcome of which is the creation of organisations that have strong visions around which people assimilate, but which utilise individual’s styles, viewpoints, insights and the conflict which differences may cause as a sources of competitive strength. See Figure 8.2

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Phase 1: Creating the business case by briefing top managementTop and senior manager must formulate clear business reasons for starting a managing diversity process. This should be firmly based on how managing diversity can increase profitability or market share.

The goals of phase 1 are to: Create awareness of the need for a managing diversity process as a strategic and

competitive advantage Gain top management ownership of the process Identify sustainable business reasons for the organisation to embark upon the process Convey and clarify senior executive roles in implementing the initiative Clarify the difference between affirmative action and managing diversity Create an enthusiastic vision which will sustain a process

Phase 2: Diversity research or organisation assessmentDuring phase 2, information is collected on organisational culture and behaviour. Reviewing affirmative action policies and targets set, provides an affirmative action profile and an analysis of the factors that drive the affirmative action programme. This is the easy accessible information, but understanding the culture is a challenge.

In the early stage of a diversity process, it is important to identify which unspoken rules and assumptions hinder productivity. This is done through document reviews, focus groups and anonymous stakeholder’s surveys. Employee participation is important during this phase.

The goals of phase 2 are: Identify positive and negative issues that could hamper or promote the achievement of the

vision of managing diversity effectively Isolate those factors of organisational culture that create barriers for employees to

contribute fully to the goals and profitability of the organisation

Phase 3: Communicating with stakeholdersLeaders of the organisation must commit to talk to employees affected by the change. Communicating with stakeholders has the dual purpose of explaining the change process and engaging them actively in the process. Make provision that communication occur, bottom-up and top-down as well as laterally between functional departments and stakeholders. Flexible systems must be put into place to ensure that communication is regular, comprehensive and provides for on-going feedback.

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Communication is a way of: Developing a joint vision of the processIdentifying problems that hinders the processDeveloping of relevant measuring tools to be used in researchMonitoring and evaluating the success of the processEnsuring joint responsibility and commitment to the process

The major goals for phase 3 are: Ensure that all stakeholders understand the managing diversity process and can participate

in it appropriately Minimise fear associated with the managing diversity process

Phase 4: Educating stakeholdersBased on the needs identified in the diversity research, a programme of strategic intervention must be planned. Initially it will include workshops explaining managing diversity, stereotyping, prejudice and the skills required to manage a diverse workforce.

The educational process proved and opportunity for management to engage with employees and other stakeholders in clearing the values of the organisation. A critical aim is to educate stakeholders, with an end goal of improving quality and service to customers so that their attitude change is sustained. A multi-level, broad-based educational process is recommended if a top-down strategy is expected to filter down to the lower levels of the organisation in order to speed up the process.

The goals of phase 4 are: Ensure that all staff is exposed to an understanding of how to work productively with

someone who may differ from themselves, thereby promoting the goals of superior quality and customer service.

Ensure that all staff and other significant stakeholders are part of the change process Promote the value of diversity within the organisation and hence a respect for all by all Develop skills and behaviour options necessary to form quality working relationships Develop participative systems which will promote the understanding of managing diversity

in the organisation and will thereby ensure sustainable results Provide an understanding of how to manage diverse workforces effectively Develop an affirmative action or managing diversity task force to sustain the managing

diversity process

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Phase 5: Reviewing systems and structuresEven though there is a clear commitment of managing diversity, historical structures and practices might still exist in the organisation. A methodical diversity process will highlight these subtle issues which need to be addressed.

During this phase, the organisation will be challenged to act on the awareness of those employees who have not historically been part of the workforce or who have suppressed their needs and individuality over the past years. This demands a degree of flexibility on the part of the organisation and an awareness of the diversity of the people comprising the organisation.

Managing diversity should be an integral component in managerial and supervisory evaluation and performance management.

The goals of phase 5 are: Ensure that human resources and systems support the organisational vision of developing

an all-inclusive work environment Understand how the organisation can work towards enhancing the work-life balance of its

employees Structure the organisation to take full advantage of the heterogeneity of the workforce

Phase 6: Monitoring and evaluating the diversity processPeople management and managing diversity are often regarded as the “soft” side of the business, and human resources strategies are given lower priority than those of finance, marketing and operations. It is therefore critical to the strategy’s success to measure and track performance.

Using the audit results from the diversity research, it is possible to plot the organisation’s progress in an area and benchmark it against itself over periods of time in the following areas, amongst others:

Lower staff turnover and avoidance of the “revolving-door syndrome”. Tapping into the range of skills previously absent from the organisation. Attracting and retaining the best talent. Increasing the skills of staff at all levels through their active participation in the process. Enhancing creativity and problem-solving, both are critical for competitiveness. Ensuring better labour relations and communication throughout the organisation. Responding timeously to diverse marketers Enhancing job satisfaction to achieve superior productivity and quality. Promoting flexibility, adaptability and pro-activeness within the organisation. Utilising people’s skills optimally

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This model largely focuses on the processes to be followed, but also offers some ideas on the initiatives that can be implemented to manage diversity. There seems to be agreement between researchers that affirmative action is a short-term process for diversifying an organisation and managing diversity is a long-term process.

3. An organisational transformation model

Van Rooyen developed a model that incorporates affirmative action and employment equity as well as most aspects of transformation and change. There are 5 phases to this model.

Phase 1: Environment and destabilising forcesSome researchers are of the opinion that organisations need to keep abreast of what is happening in the external environment to be successful in retaining customers, building market share, outpacing competitors or capitalising on new business opportunities.

The destabilising forces when managing diversity are:

External to the organisation: Economic – pressure of globalisation and major skills shortage Political – demands of the ANC, empowerment of previously disadvantaged people Legal – Employment Equity Act, Skills Development Act and Labour Relations Act

Internal to the organisation:To operate more effectively management are required to manage organisations differently. A shift in authority from your boss to your customer is necessary for survival. The nature of work is changing and so are the values people bring with them to work.

Phase 2: Strategic alignmenta) Awareness creation/implications for the organisation

Organisations can no longer ignore the changes in the internal and external environments. Organisations undergo a natural change process; adjustments will develop according to custom, convenience, power or notion. Top management should direct change by:

Diagnosing and understanding the destabilising forces Interpreting the implications of the forces of the organisation Realising the extent and complexity of the organisation change process

b) Purpose and philosophy of the transformationThe change effort should be a working blueprint of how the organisation will appear after the transformation. Top management should be clear about the purpose and philosophy of the transformation. Reasons for transformation should be closely linked with increased profitability and / or market share.

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A fundamental decision for managing diversity is whether to adopt a participative approach. Organisations should formulate a policy statement that provides an overview of the purpose and philosophy of the managing diversity/affirmative action transformation.

c) Organisational assessment/audit

An assessment process should identify the present belief systems of employees and the impact of these systems on the way work is done. The current status of the organisation in relation to employment equity is a critical step in the development of an affirmative action and managing diversity strategy.

i. An investigation into the workforce compositionThis analysis will provide a framework for setting goals to improve the participation of black people and women at all levels and will provide benchmark information to evaluate over time.

ii. Review of human resource policies and proceduresPolicies and procedures that act as barriers to the appointment, development, and promotion should be identified. These should be questioned to make sure that they are fair and not discriminating. In reviewing policies and procedures the following questions can be asked; is the policy really job-related; is the policy valid; is the policy arbitrary; is the policy a business necessity; does the policy conform to legislation and does the policy affect previously disadvantaged people.

iii. Audit of attitudes and perceptionsAudit of attitudes and perception has two objectives 1) to provide an indication of employee’s perceptions of and attitudes of current practices and 2) to provide an indication of employees’ perceptions of and attitudes to other factors impacting on management of diversity.

These audits will prove an overview of the current climate. In devising tools of assessment, it is advised that employees participate. This will create a sense of involvement, commitment and joint responsibility. The organisational assessment will highlight the barriers to an effective managing diversity strategy will provide the basis for planning comprehensive strategic interventions.

Phase 3: Communication to sensitise stakeholdersIn times of change communication is essential and important, specifically for those that will be affected by the change. Managing diversity is a transformation strategy and this can make people feel insecure. They may fear losing their jobs. Communication with stakeholders should not only explain the purpose of the change process but should also emphasise the importance of participation by employees in designing the change strategies.

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Phase 4: Determine strategy for transformationIt is critical to consider where the organisation wants to be in future, where it currently is, and the gaps that exist between these two points. This strategy should move the company from its current state to its desired state.

It is important to develop different strategies to address the two concepts. They should mutually support one another, resulting in a transformed organisation with increased performance.

a) Affirmative action strategyAccording to the proposed model, affirmative action implementation rests on two pillars: 1) Redesign of human resource structures, policies and procedures

Redesign procedures to eradicate all forms of discrimination that are part of structures and practices. This may include recruitment and selection, promotions and access to information. Affirmative action should be a component of overall management practices and should therefore be integrated with other processes such as human resource planning.

2) Equalising opportunities Identification of potential Increased, accelerated development Coaching and mentoring Other mechanisms – job category targets and objectives; allocating vacancies; spare

creation

Once above have been implemented, an organisation will be close to achieving the objective of creating employment equity. The organisation will have a solid foundation for implementing a managing diversity strategy.

b) Managing diversity strategyManaging diversity is a comprehensive managerial strategy for developing an environment that works for all employees, and all employees are allowed to reach their full potential. It goes beyond race and gender issues and includes many dimensions focusing on the empowerment of the workforce. Managing diversity requires a fundamental change in the organisation’s culture. This could take years to implement. Corporate culture is defined as the basic assumptions driving the life in an organisation. Managing diversity strategy can only be implemented when the culture is changing. A four-part plan can be implemented to ensure the success of such a culture change process:

1. Shared vision Identifying the ideal culture and it must be clearly communicated that diversity is being actively pursued as a business imperative.

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2. Shared cultureShared culture build a sense of collective identity by achieving a consensus on culture.

a. LeadershipThe leadership task of building and maintaining a culture must occur throughout the pyramid. Culture change levers that management should use include: articulate the new values at every opportunity; ensure that systems are congruent with the new culture; create heroes who are supportive of new values; guard against managerial practices that are not supportive of the new culture. Clear and consistent leadership is needed.

b. Educating the workforceManagement should engage with employees in crystallising the new values or roots of the organisation. Special attention should be given to equipping mangers with skills to manage a diverse workforce effectively.

c. Reviewing systems and structuresIdentify those systems and practices that oppose the new culture and change them first. In line with business practice, the modification of structures into self-managing work teams should be considered.

3. Shared performanceWhen performance is shared, people take responsibility for their own behaviour and performance. There should be clear, quantifiable objectives with set timelines.

4. Shared commitmentShared commitment results in everyone pulling in the same direction. On-going communication is vital to highlight success stories and achievements.

Changing the culture is a long-term process. The process of diagnosis, planning, intervention, monitoring and evaluation must be on-going. Reaching the desired end state required that you keep track of where the organisation is going and to what extent the gap is shrinking.

c) Participative structures supporting and controlling the transformationBecause of the lack of progress with affirmative action, many companies have accepted that a top-down approach is necessary. A bottom-up approach is just as important. Empowerment and participation are the themes in this approach. Forums and consultation should take place. Participative support structures should be put in place. To ensure that this happens the following must be done:

Affirmative action/managing diversity support person should be identified to assist the managing director.

Advisory committee (employees from various departments) should be formed to:- Promote and implement the transformation process- Make recommendations on matters affecting strategy and policy formulation- Monitor and evaluate the effectiveness of the strategy- Advising on the communication process

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This committee can be advised by external consultants. Functional heads and line managers are accountable for implementing the

transformation process and reaching the set objectives. Human Resources are responsible for initiating, facilitating and providing consultative support and advice.

Phase 5: Continuous monitoring and evaluation of the transformationIn all managing diversity models, continuous monitoring and evaluation of steps are highlighted as critical to sustain the change efforts.

According to Thomas, affirmative action progress can be measured by:

A greater number of women and black applicants applying for positions in the organisation compared with previous yearsA greater number of such applicants hiredLower turnover of women and black employeesA greater number of women and black employees being mentored for senior positions and being placed in well-structured, individualised training and development programmesA decrease in the number of complaints of discrimination and unfair labour practices lodged by employees and unionsIncreasing business being done with black-owned businessesGreater parity in the salaries of women and black employees compared with white male counterparts

Further measures of success of a managing diversity strategy are:

Sales volumes and market share before and after programmes implemented by diverse marketing teams for diverse consumer groupsThe quality of information exchange up and down the organisationExternal recognition as an employer of choice and accompanying recruitment advantageNon-traditional problem resolution, reduction in cycle time, innovative products and servicesAccess to global markets and sourcing new marketsIncreased loyalty and reduced friction among employees as they come to understand differencesEmployee commitment as evidenced in coming to work, lower absenteeism, investing in learning, caring about deadlines and quality of outputFair treatment evident in thorough employee evaluation, provision of information about career opportunities, promotion transparency and willing ess by management and employees to work in partnership

Strategic plan to implement diversity management

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Various approaches can be used to develop an overall diversity plan for a company. The integrative organisational approach gives the best results.

The following steps are part of the overall diversity management plan:

1) Develop a diversity policy and plan2) Establish commitment to the management of diversity3) Gain management commitment4) Develop a comprehensive communication strategy5) Involve employee representatives6) Manage changing attitudes7) Establish a diversity committee to oversee the process8) Identify barriers to the effective implementation of diversity management9) Align human resource policies and practices10) Provide employees and other stakeholders with on-going feedback

If organisations manage diversity effectively, it will result in a performing workforce. This can only be achieved by establishing a new organisational culture.

The following are important in this whole process:

Transforming leadershipTraining managers and employees in diversity skillsSupporting lifestyle and life needsSetting up special support groupsSkills trainingConstant awareness of cultural differences and biasesLinking diversity with business priorities

Measuring diversity initiatives/strategies

The following key elements should be integrated into any diversity management initiative:

1. Conduct self-evaluation to create a better understanding of self and others.2. Apply a balanced and objective approach to ensure recognition of differences.3. Provide opportunities for people to explore their experiences and values.4. Include both Eurocentric and Afrocentric strengths in the institution.5. Extract the best management tools from groups.6. Management should work toward reconciling individualistic and collective value systems.7. Institutions should provide for an on-going cultural awareness and diversity training.8. Reward good work

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9. Provide substantial support10. Integrate diversity into management strategy

Conducting a diversity needs assessmentDeveloping a shared visionCompiling an action planMonitoring and evaluation

11. Empower staff to cope with diversityEmpowering programmes should include

The identification and handling of stereotyping, bias, prejudice, and assumptions Assistance to learn about, understand and value differences Diversity as a system change process The movement towards institutional and individual change Conflict management and problem-solving skills.

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