Diversity (business)

Proponents argue that businesses benefit by having diversity in the work force.^[1][2][3] The business case for diversity stems from the progression of the models of diversity within the workplace since the 1960s. In the United States, the original model for diversity was situated around affirmative action drawing from equal opportunity employment objectives implemented in the Civil Rights Act of 1964. Equal employment opportunity was centered around the idea that any individual academically or physically qualified for a specific job could strive for (and possibly succeed) at obtaining the said job without being discriminated against based on identity. These initiatives were met with accusations that tokenism was the reason an individual was hired into a company when they differed from the dominant group. Dissatisfaction from minority groups eventually altered and/or raised the desire to achieve perfect employment opportunities in every job.


The social justice model evolved next and extended the idea that individuals outside the dominant group should be given opportunities within the workplace, not only because it was instituted as a law, but because it was the right thing to do. Kevin Sullivan an ex-vice president of Apple Inc. said that "diversity initiatives must be sold as business, not social work."^[4]


In the deficit model, it is believed that organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover which will result in higher costs to the company.^[5] Establishments with more diversity are less likely to have successful unionization attempts.^[6]

Benefits[edit]

Diversity is believed by many to bring substantial benefits such as better decision making and improved problem solving,^[11] greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers.^[7][12] Diversity is also claimed to enhance organizations' abilities to compete in global markets.^[13] Simply recognizing diversity in a corporation helps link the variety of talents within the organization.^[14][15] DePree believes that the act of recognizing diversity also allows for employees to feel have a sense of belonging, which increases their commitment to the company and allow each of them to contribute in a unique way.^[16]


Standpoint theory suggests that marginalized groups bring a different perspective to an organization that challenges the status quo since their socially constructed world view will differ from that of the dominant group.^[17] Although the standpoint of the dominant group will often carry more weight, encouraging conflicting standpoints to coexist within an organization which will create a forum for sanctioned conflict to ensue. Standpoint theory gives a voice to those in a position to see patterns of behavior that those immersed in the culture have difficulty acknowledging.^[18] From this perspective, these unique and varying standpoints help to eradicate groupthink which can develop within a homogenous group.^[12] Scott Page's (2007)^[19] mathematical modeling research of team work reflects this view. His models demonstrated that heterogeneous teams consistently out-performed homogeneous teams on a variety of tasks.


Page points out, however, that diversity in teamwork is not always simple and that there are many challenges to fostering an inclusive environment in the workplace for diversity of thought and ideas. For example: "If we look at the evidence on whether identity diverse collections of people perform better than more homogeneous collections, we see mixed results at every level. At the country level, we find that in advanced economies, ethnic diversity proves beneficial. In poorer countries, it causes problems. In cities, we see similar effects. Diversity has the same pluses and minuses. Cognitive diversity increases innovation. Preference diversity leads to squabbles" (p. 14). Also, "We have no logical reason to think that identity diverse groups would perform better than more homogenous groups – unless we believe that mysterious collective cognitive capability emerges from the interactions of people with diverse identities" (p. 326).


In order to benefit from diversity, keep organizations competitive, and drive business success, comprehensive strategies are required that encompass all dimensions of diversity (race, gender, cognitive styles, beliefs, experience etc.).^[20]

Challenges[edit]

One of the greatest challenges an organization has when trying to adopt a more inclusive environment is assimilation for any member outside the dominant group. The interplay between power, ideology, and discursive acts which reinforce the hegemonic structure of organizations is the subject of much study.^[21] Everything from organizational symbols, rituals, and stories serve to maintain the position of power held by the dominant group.^[21]


When organizations hire or promote individuals that are not part of this dominant group into management positions, a tension develops between the socially constructed organizational norm and acceptance of cultural diversity. Some have claimed that cultural diversity in the workplace will increase interpersonal conflicts. Often these individuals are mentored and coached to adopt the necessary traits for inclusion into the privileged group as opposed to being embraced for their differences.^[12][17] According to the journal article "Cultural Diversity in the Workplace: The State of the Field", Marlene G. Fine explains that "those who assimilate are denied the ability to express their genuine selves in the workplace; they are forced to repress significant parts of their lives within a social context that frames a large part of their daily encounters with other people". Fine goes on to mention that "People who spend significant amounts of energy coping with an alien environment have less energy left to do their jobs. Assimilation does not just create a situation in which people who are different are likely to fail, it also decreases the productivity of organizations".^[13] That is, with a diverse workforce, management may have to work harder to reach the same level of productivity as with a less diverse workforce.


Another challenge faced by organizations striving to foster a more diverse workforce is the management of a diverse population. Managing diversity is more than simply acknowledging differences in people.^[22] A number of organizational theorists have suggested that work-teams which are highly diverse can be difficult to motivate and manage for a variety of reasons. A major challenge is miscommunication within an organization. Fine reported a study of "work groups that were culturally diverse and found that cross-cultural differences led to miscommunication".^[23] That is, a diverse workforce led to challenges for management. The meaning of a message can never be completely shared because no two individuals experience events in exactly the same way. Even when native and non-native speakers are exposed to the same messages, they may interpret the information differently.^[24] There are competencies, however, which help to develop effective communication in diverse organizational environments. These skills include self-monitoring, empathy, and strategic decision-making. Impromptu speaking is also considered a key allyship skill to communicate with authenticity in everyday words and reactions.^[25]


Maintaining a culture which supports the idea of employee voice (especially for marginalized group members) is another challenge for diverse organisation. When the organizational environment is not supportive of dissenting viewpoints, employees may choose to remain silent for fear of repercussions,^[26] or they may seek alternative safe avenues to express their concerns and frustrations such as on-line forums and affinity group meetings.^[27] By finding opportunities such as these to express dissent, individuals can begin to gather collective support and generate collective sense-making which creates a voice for the marginalized members so they can have a collective voice to trigger change.^[26]