Effects of Managing a Diverse Workforce
Business organizations are becoming more diverse every year, which is leading top management to learn how to manage the diversity. Diversity comprises the following different categories: “gender, race, age, physical ability, sexual orientation, religion, skills, and tenure in the organization” (Daus & Joplin 1). These items all need to be managed in order to have a successful operation and maintain qualified employees. In order to adequately manage a diverse workforce, management must understand the effects that diversity has on their employees and business.
Effects of Diversity
Before upper management can begin the training process on managing diversity, they first must understand the effects that diversity has on employees and the business as a whole (Buhler, 2002). The employers must look at what actually constitutes diversity and weigh the benefits. There are some organizations that will benefit greater by the more diverse workforce they employ, such as business that deal with international trade or sales. Diversifying their company will allow them to infiltrate into areas that they were not able to obtain before. By understanding these items they will be able to see it will enable them to put in place a successful training program. Although there are many benefits to this type of workforce, management also needs to review weaknesses and common issues that are associated with diversity (e.g. differences of opinion based on cultural views or the differentiation between human resources information systems). This will allow them to better understand their employees and how to deal with problems if and when they arise. By studying these weaknesses and issues and attempting to mitigate these risks before they arise, it will limit the chances that the any HRIS system will be ineffective leaving the management team with chaos rather than a better system. Furthermore, implementing a human resources information system that incorporates diversity training initiatives will not be effective if the human resources department running the programs is dysfunctional.
Managing Diversity
Cultivating a diverse workforce is not an inherent practice of organizations. It is must be calculated based on the organizations desired directional growth, the demographics for servicing, and the skills needed to facilitate growth and endurance. An organization must embrace diversity as a foundation of its culture in order to cultivate an environment of respect, appreciation, and support throughout the each level within the company. In their article Challenges of leading a diverse workforce Joplin and Doss assert: “What’s critical is understanding that diversity must be a primary core value within the organization, and it should be culturally linked with your business strategy…. Not only does it strengthen your culture but it also improves your ability to reach the changing marketplace” (1997). Ultimately achieving the benefits stimulated by a diverse workforce stems from senior level executive involvement and support. An effective strategy for managing diversity is therefore key to the stability of the organization.
Three of the major research resources cited in this paper on diversity yielded a similar conclusion in their studies. Challenges of Leading a Diverse Workforce (Joplin et al, 1997); Impression Management, Diversity and International Management (Giacalone, 1994); and Cultural identity and diversity in organizations: Bridging the gap between-group differences and individual uniqueness (Ferdman, 1995); all concluded that understanding cultural diversity in its social context inside of a corporate setting can lead to increased effectiveness and performance of individual workers and the company as a whole. These studies also indicated that although embracing diversity may be difficult for some it is a necessary and relevant topic for today’s workforce. These findings were based upon the rapidly changing demographics of the corporate sector which has seen a steady increase of minority applicants and workers being introduced to a historically homogenous workforce.
HR Systems and Technology
The Role of HR Information Systems
The general role of human resources information systems (HRIS) is to help an organization accomplish its overall mission by ensuring that human resources are managed properly. More specifically HRIS systems may help reduce costs, save time, increase profitability, and improve employee performance (Buhler, 2002). A human resources management system (HRMS) is a core enterprise application for managing administrative and strategic processes related to an organization's most critical asset, its people. The vast majority of large organizations use an HRMS from one of the three major human resource software vendors — SAP, PeopleSoft, or Oracle ()
HR Information Needs and Technological Advances
Typically technology-based advances are geared toward a leisure consumer that purchases a product for leisure use, ease of life, or convenience. In relation to business technology advances these technological advances often become trends, which eventually can become a standard in business. However in HR, technological advances are typically geared towards managing human resources more efficiently. Generally referred to as human resources information systems (HRIS) technological advances may affect the overall management of the business. HRIS systems may cover:
- Attendance/vacation/absenteeism control
- Career development
- COBRA administration
- Employee scheduling
- Flexible benefits administration
- Payroll
- Pension administration
- Performance management
- Policy manual/employee handbook creation
- Succession planning
- Taft-Hartley Plan Administration (Buhler, 2002).
Typically HR looks for technology that is easy to use, reduces costs, improves productivity, improve service and communications with your employees, elevates manager effectiveness, focuses on more strategic activities, and is easily convertible or upgraded to another system (Buhler, 2002).
Case studies from Grey Global Group, Yamazaki Machinery UK Ltd., Cardiff University have concluded that in a technology orientated environment it is essential that all areas of the business, including HR, adopt a commitment to continuous improvement and effective use of the tools available (http://www.computersinpersonnel.com). This is key influencing factor when it comes to choosing an HR system ((http://www.computersinpersonnel.com). Furthermore, the case study added that implementing and integrating a flexible personnel management solution, providing on line data analysis, and global HR management via a secure computer network were also desired features when selecting a HRIS system ((http://www.computersinpersonnel.com).
According to Spectrum Human Resource Systems Corporation, a leading provider of
human resources technology, dependable technology is critical to the success of any HR software company (http://www.computersinpersonnel.com).
Conclusion
Efficiently managing and understanding the related risks and issues involved in domestic or global human resources management is extremely important. With a global company that holds a variety of international interest intelligent HR management is critical to the success of the company. As the business world is becoming a more multicultural area, upper management needs to begin diversity-training programs as a manner of staying alive within the corporate sector. In order to be successful at this, management must first understand the effects that diversity has on the workforce, both positive and negative. Not having this initial knowledge will produce an ineffective program and could lead to the demise of the organization.
References
Buhler, P. (2002). Human Resource Management. Adams Media Corporation. Avon, Mass.
Child, J., Pitkethly, R. and Faulkner, D. (2001). The Management of International Acquisitions.
Oxford University Press. London
Daus, Catherine & Joplin, Janis. (1997). Challenges of Leading a Diverse Workforce. Retrieved
August 6, 2004, from
Ferdman, B.M. (1995). Cultural identity and diversity in organizations: Bridging the gap
between-group differences and individual uniqueness. In M.M. Chemers, S. Oskamp & M.A. Costanzo (eds.), Diversity in organizations: New perspective for a changing workplace: Vol 8. Claremont symposium on applied social psychology (pp. 37-61) Thousand Oaks, CA: Sage Publications.
Giacalone, R.A. & Beard, J.W. (1994). Impression management, diversity and
international management. American Behavioral Scientist. 37,612-636
, P. Herbert, L. and Bartels, A. (2004, July 25) Choosing The Right System To
Manage Your People Forrester Wave™: HR Management Systems retrieved on 10 February 2006 http://www.forrester.com/Research/Document/Excerpt/0,7211,34308,00.html
Joplin, J. and Catherine Doss. (1997) Challenges of leading a diverse workforce.
Retrieved August 9, 2004 from
