Workforce diversity's impact on employee performance in organizations

Ethical Response to Diversity

The rapid growth of business sectors has posed various challenges like workforce diversity: a natural phenomenon with both positive and negative impacts on employee performance depending on how effective it is managed. This has affected both for-profit and non-profit sectors. In this context, this paper will investigate the impacts of workforce diversity on employee performance. The paper will use descriptive research design. This study will reveal that companies have strategies like support to minority groups, balanced recruitment and training, equal employment opportunities and diversity training. Besides employee's performance ability and level of education, no other workforce diversity variable can determine an employee's compensation. This paper has found that workforce diversity affects employee performance at varying levels considering both non-managerial and managerial employees of companies. It shows a significant degree of relationship between productivity levels and employee performance when the workforce is categorized by level of education, age and gender

Introduction

Workforce diversity is the ways that individuals contrast, which can influence a relationship or task inside an organization, for example, age, sexual orientation, race, education, culture and religion. An organization can adopt various practices to manage the diversity of its workforce. Despite the fact that workforce diversity has turned into a reality in associations today as anticipated by Workforce 2000 in a 1987 report by the Hudson Institute, the ways that associations manage and define workforce diversity continue to evolve (Swansburg & Swansburg, 2012). The expanding pattern of workforce diversity along racial, ethnic and sex lines, and additionally an expanding rate of the workforce that is beneath the age of 30 and over fifty-five years have some suggestions from HRD experts, representatives, and organization in general.

This emerges from the biases that may continue, language contrasts, cultural insensitivity expanding percentage of women in the workforce and the aging employees. In spite of the fact that this research talks over the effects of workforce diversity on worker performance, it is exceptional to note that equality and diversity are two corresponding standards much the same as time and space. To comprehend the effect of workforce diversity, researchers should think about the impacts of the distribution of scarce and valued resources, the relationships around individuals and groups, and the compositional impacts of the unit, like work occupation, firm, or social order (Mor, 2006). These have significance on designation of decisions and evaluative methods that then expedite labor force outcomes like demeanor, conducts, and material and psychic rewards. Although researchers in this field give some insight into the broader picture of workplace inequality, there remains an extraordinary need to comprehend the instruments through which workforce diversity yields differential outcomes within work groups, occupations, jobs, firms, and even social orders. This study was dependent upon the strategic diversity management approach and the equal opportunity approach. A reaction that is more urgent is normal from members of out-group than from the in-group members (Boyle & Ellingson, 2011).

Investigators discovered that men are favored regardless of whether they are in the minority or majority gender group. On the other hand, women are disfavored when they are in the minority, and even when they are in the majority. Contemporary patterns in the legal schema have required the implementation of statutes making it unlawful to discriminate. This applies to grounds of sex, race, marital status, ethnicity, incapacity, national origin, sexual orientation, belief or religion, union enrollment or non-participation. The equal pay law requires women and men to be paid the same wage for doing work which is the same or which might be indicated to be of equivalent value unless the business can support a distinction on grounds other than sex (Konrad, 2009).

There are distinctive methodologies to equality, for example, the liberal approach, legislative action, and managing diversity. Positive work atmosphere incorporates an identifiable, open, and sustaining school ethos that nurtures the awareness of other's expectations, accomplishment, efficacy, and commitment around staff and students. It is additionally portrayed by a dedication to organizational accomplishment and advancement of employees, shared appreciation, and coordinated effort around the leaders and staff. The positive work atmosphere has been distinguished as a driver of performance and helps a third of organizational outcomes (Davila & Crowther, 2011). The obligation of fostering a work atmosphere lies exclusively in the leader of the establishment whose conduct confirms the work atmosphere. The positive conduct drives the work atmosphere, which triggers motivation, and the triggered motivations are a key driver of the bottom line performance. While seeking to establish a positive work atmosphere, the leaders of the association must manage diversity by working with its staff. This ensures that staff motivation is enhanced.

Study Problem

Managing diversity in the working environment ought to be the concern of each organization. To survive, an organization needs to have the ability to manage and use its diverse workplace adequately. Managing diversity in the working environment ought to be a part of the culture of the whole company. Recognizing and valuing diversity is basic if a company desires to maintain its competitive advantage. Practices of diversity management upgrade profit, viability, and sustained competitiveness (Konrad, 2009). Associations that support and realize a diverse working environment will pull in, hold quality representatives, and increment client loyalty. Strategies of human resource diversity management have increased past equal employment opportunity and affirmative action staffing efforts. Other best practices include securing a visible diversity advisory board, directing mandatory training and focusing on communications to diverse members of affinity groups. The concentration on contrasts in the unique aspects prompting disparity has represented the challenge of accomplishing solidarity in diversity and harnessing that diversity to enhance employee performance. Failure to manage workforce diversity regarding race, sex, and profession, level of education, ethnic connection, and religious affiliation regularly accelerates distinctions in pay, promotions, training, turnover, job satisfaction, mutual acceptance and other manifestations of inequality (Boyle & Ellingson, 2011).

In any case, the challenges that businesses confront in enforcing collaboration with workers from diverse background, age, sex, race, religion, education and amicably coordinating their exertions towards the accomplishment of organizational objectives and goals, still shows that there is much to be carried out regarding the change of workforce diversity management strategies. Equity in compensation is a vital part of pulling, developing, and holding a qualified and diverse workforce. Organizations can review their payment practices and address distinctions before pay equity issues accelerate the loss of an important team member. Besides being critical for retention and workforce diversity, staying on top of worker pay has become essential as a regulatory and legal process (Swansburg & Swansburg, 2012).

Because of the vast extension of national and global commerce sectors, there has been an expansion in the diversity of the workers and managers within companies. These representatives and managers have different worldviews, culture, perceptions. Such variances can be effectively tapped to the advantage of companies if viable diversity management strategies are set up (Knapp, 2007). Despite the fact that companies have been doing well in attending to diversity in the way they handle their clients, it is not clear if this approach to diversity has been adopted internally. Businesses appear to lack diversity among their central values of creativity, integrity, Professionalism, Teamwork, Unity of reason, Respect and devotion to customer care, and adequate corporate governance, which could be a pointer that the concept of workforce diversity if still foreign. Studies confirm the need for solutions to the challenges postured by workforce diversity.

Value of the Study

The discoveries of the study will be of incredible significance in providing guidelines to address the present challenges in Human Resource Management and Development. They will ultimately upgrade employee performance in companies. The exploration will help the managers by extending the literature on the management of workforce diversity to enhance representative execution for the competitive advantage of various organizations. It will likewise empower practicing Human Resource Managers to remain important in the company of the contemporary challenges by implementing programs for managing workforce diversity. They will likewise utilize techniques for managing workforce diversity in their associations to show better employee performance. In the body of researchers, it will represent a challenge to be proactive in the quest for answers to the contemporary HRM challenges and improve the constrained body of knowledge on workforce diversity (Konrad, 2009).

This study will be of profit to organizations by enhancing the profits from solidarity in diversity, be it regarding culture, knowledge, sexual orientation, racial around others. This includes the improvement of worker performance and hence, the overall performance of the company. The execution of the proposed workforce diversity management strategies and methodologies must be of extraordinary profit to organizations in giving it a competitive edge over different competitors in various industries (Swansburg & Swansburg, 2012). The exploration ought to profit the representatives as far as enhanced interpersonal relationships, common comprehension, and shared acknowledgement of one another paying little respect to the different contrasts. In spite of the fact that a few analysts might have as of recently done other suchlike studies in different parts of the planet, this study accumulates uniqueness in terms of an alternate political, socio-cultural, economic, legal and technological environment.

Literature review on Workforce Diversity

Consistent with the discoveries of the exploratory study by Adler (2005) established that diversity can enhance execution and recruitment from a more extensive difference in age and ethnicity give the firm a wider talent pool. Furthermore, expanding diversity stretches the thickness of points-of-view and ideas accessible to organizations in settling on decisions and that cultural diversity, individual personality, professional and educational background can affect the depth and range of data utilization.

Studies on Workforce Diversity Programs indicated that fifty-three percent of respondents lacked written programs or policies incorporating the concept of employee diversity in their organizations. However, only seven percent of the respondents demonstrated that their associations were examined including the approach or program. Concerning organizational practices that were incorporated in the diversity policy or program for those organizations, which had the diversity program, the most regularly reported practices were related to recruitment. This shows that a lot needs to be done in workforce diversity programs (Mor, 2006).

Challenges of workforce diversity

The major challenges are correspondence, implementation of diversity and resistance to change in the work environment. Meeting the challenges arising from diversity requires a strategic human resource management plan incorporating various diverse techniques to upgrade diversity and support effectiveness and productivity. It likewise propels Human resource managers to request a trainable populace, check needed abilities and capabilities against the occupation, advertise jobs sufficiently in front of necessities, and amplify the workforce limits to incorporate the nationals of different nations (Mor, 2006). It carries with it the need for re-looking at Human resource practices from top to bottom need to be re-analyzed to adapt to the new challenges and strengths of diversity. Managers may make advanced methodologies for hiring new talent, retaining them, and managing them more adequately.

Human resource managers face the challenge of persuading their senior administration that diversity systems are helpful to the association. Some organizational leaders are worried that executing diversity initiatives are excessively unmanageable, upset profit and causes disturbance in the work environment. Hostile and prejudice work environments likewise posture internal hindrances to managing workfare diversity adequately. A significant hindrance that influences full integration of ethnic workers is the issue of poor correspondence or the absence of it by failure to address the different barriers to communication (Cornelius, 2011).

Managing diversity includes leveraging and utilizing the cultural distinctions within the individuals' abilities, ideas and inventiveness to achieve a common objective, and doing it a way that gives the company a competitive edge. Later studies have demonstrated a powerful correlation between diversity practices and benefits as differences permits expanded innovativeness, a more extensive range of viewpoints, better issue definition, more options, and better outcomes (Boyle & Ellingson, 2011).

Managing workforce Diversity

Managing diversity in the workforce is described as a comprehensive managerial process for the development of an atmosphere that works for all representatives. The challenges of achieving the needs of a culturally diverse team of employees and sensitizing managers and workers to differences related to race, gender, sex, nationality and age has led to effective management of diversity to become a requirement in human resource management. Companies can manage workforce diversity through a variety of approaches like diverse recruitment policies, strategic diversity management, affirmative action to minorities and diversity management (Knapp, 2007).

Relationship between workforce diversity and performance

An effective workforce diversity practices in the human resource area are urged to improve organizational and employee performance. This is because diversity management entails using and leveraging the cultural differences in people's ideas, creativity, and skills to contribute to a shared goal. This must be done in a manner that gives the company a competitive advantage. Even recent investigations reveal a powerful connection between good practices of diversity and organizational profits (Swansburg & Swansburg, 2012).

Conclusion

From the discoveries, it might be derived that each organization that adopts management of workforce diversity appreciates more imaginative decision-making, fulfilling work environment, and improved products because all representatives are included and feel energized helping in an important manner. This yields an information base because of information sharing and enhanced execution. Management of workforce diversity, which appeared more delicate in organizations, serves an essential role. It reinforces better employee retention, expanded productivity, improved morale, an increase in market share and enhanced customer service.

Owing to the way that an organization that discriminates directly or indirectly shortens the potential of accessible talent, either underutilizes the representatives, or loses the fiscal profits of retaining them, organizations have no alternative other than introducing and managing workforce diversity in their associations. The existing challenges in managing workforce diversity may also spur the quest for preferred strategies rather than acting as a hindrance to associations and Human Resource Managers for moving towards the pattern of a more diverse workforce. Such legitimate investigations could be discovered by the introduction of strategic studies on human resource management.