A school of thought postulates that diversity impacts positively on organizations by increasing their effectiveness and thus increasing their competitive advantage. Others are of the view that diversity is a public relation stunt and has no impact on organizations or at worst impacts negatively on organizations. The purpose of this article is to find out whether diversity results in increased organizational effectiveness and consequently results in competitive advantage.
ARGUMENT IN FAVOR OF DIVERSITY
An organization’s strategy for growth, such as expansion into new markets and mergers and acquisitions could be enhanced by diversity and inclusion. Organizations that have an inclusive environment, and make the most of diversity generate innovations …show more content…
It has been discovered that diversity can negatively affect organizational processes and performance. Stereotyping and affective conflict arise out of a diverse workforce, and thus affecting turnover (Pelled, 1996; Jehn, Northcraft, & Neale, 2000; Tsui). Empirical evidence suggests that in-group demographic preference exists in organizations (Allen & Wilder, 1976; Brewer, 1979; Tajfel, 1982).This has the tendency to lead to groupings, for example the same race or sex within the wider group. Tsui and associates (1992) discovered that diversity results in white male employees detaching from the wider group. Thomas & Ely (1996) espoused that a diverse workforce did not result in the improvement in the performance of the organization. Milliken and Martins (1996), concluded after reviewing the literature that racial and gender diversity can have adverse effect on individual and group outcomes in certain instances. Minority members of the group feel marginalized and suffer lower levels of psychological commitment and higher levels of absenteeism and turnover intent. Watson et al. (1993), postulates that in the course of time these adverse effects may diminish and will be supplanted by better quality and more creative …show more content…
In spite of the views as espoused by the scholars above, diversity can be managed properly to achieve the intended benefits. The concept of diversity management is clear and unambiguous in definition and it is often interchanged with the term managing diversity. The concept was first introduced in the 1980s in the United States. According to Thomas, R. (1991), ‘Managing diversity is an idea whose time has come. A number of corporations and organizations are becoming conscious of the fact that a diverse workforce should not be perceived as a burden is not a burden, but rather their greatest potential strength when managed properly’ (Thomas 1991, viii). McCuiston et al (2004), states that the implementation of policies to promote workplace diversity results in the improvement of the bottom line which ultimately leads to increased competitive advantage; superior business performance; higher levels of employee satisfaction and loyalty. Contemporary scholars concur that having and making use of a diverse workforce has resulted in accrued benefits to organizations (; Stewart and Brown, 2010; Dessler, Mathis et al., 2013 ;). The success of diversity management initiatives is underpinned by embedding equal employment opportunities (EEO) policies in the firm’s business practices. For diversity management to be effective, it should not be aimed at non discriminatory policies that makes provision for
ARGUMENT IN FAVOR OF DIVERSITY
An organization’s strategy for growth, such as expansion into new markets and mergers and acquisitions could be enhanced by diversity and inclusion. Organizations that have an inclusive environment, and make the most of diversity generate innovations …show more content…
It has been discovered that diversity can negatively affect organizational processes and performance. Stereotyping and affective conflict arise out of a diverse workforce, and thus affecting turnover (Pelled, 1996; Jehn, Northcraft, & Neale, 2000; Tsui). Empirical evidence suggests that in-group demographic preference exists in organizations (Allen & Wilder, 1976; Brewer, 1979; Tajfel, 1982).This has the tendency to lead to groupings, for example the same race or sex within the wider group. Tsui and associates (1992) discovered that diversity results in white male employees detaching from the wider group. Thomas & Ely (1996) espoused that a diverse workforce did not result in the improvement in the performance of the organization. Milliken and Martins (1996), concluded after reviewing the literature that racial and gender diversity can have adverse effect on individual and group outcomes in certain instances. Minority members of the group feel marginalized and suffer lower levels of psychological commitment and higher levels of absenteeism and turnover intent. Watson et al. (1993), postulates that in the course of time these adverse effects may diminish and will be supplanted by better quality and more creative …show more content…
In spite of the views as espoused by the scholars above, diversity can be managed properly to achieve the intended benefits. The concept of diversity management is clear and unambiguous in definition and it is often interchanged with the term managing diversity. The concept was first introduced in the 1980s in the United States. According to Thomas, R. (1991), ‘Managing diversity is an idea whose time has come. A number of corporations and organizations are becoming conscious of the fact that a diverse workforce should not be perceived as a burden is not a burden, but rather their greatest potential strength when managed properly’ (Thomas 1991, viii). McCuiston et al (2004), states that the implementation of policies to promote workplace diversity results in the improvement of the bottom line which ultimately leads to increased competitive advantage; superior business performance; higher levels of employee satisfaction and loyalty. Contemporary scholars concur that having and making use of a diverse workforce has resulted in accrued benefits to organizations (; Stewart and Brown, 2010; Dessler, Mathis et al., 2013 ;). The success of diversity management initiatives is underpinned by embedding equal employment opportunities (EEO) policies in the firm’s business practices. For diversity management to be effective, it should not be aimed at non discriminatory policies that makes provision for