MAKERERE UNIVERSITY

BUSINESS SCHOOL

PROGRAM: MASTERS OF HUMAN RESOURCE MANAGEMENT

COURSE UNIT: HUMAN RESOURCE FORECASTING & PLANNING

TOPIC: WORKFORCE DIVERSITY

LECTURER: MR. AKISOFERI WESONGA

YEAR: ONE

SEMESTER: TWO

NAME

REG NUMBER

COURSE

SIGNATURE

AKAMUMPA ROSELYN

2011/HD10/3649U

MHRM

ATUHEIRWE DUX

2011/HD10/3651U

MHRM

NAKAZIBWE NGINA

2011/HD10/3679U

MHRM

NANSUBUGA NANCY

2011/HD10/3675U

MHRM

OGULLEI RACHEL EVELYN

2011/HD10/3698U

MHRM

This write up is broken down into sections

SECTION ONE

1.0 Introduction

1.1 Definitions

1.2 Advantages of workforce diversity

1.3 Challenges of workforce diversity

SECTION TWO

2.0 Factors the motivate organizations to diversify their workforces

2.1 Approaches to diversity management

SECTION THREE

3.0 Conclusion

3.1 Case study

3.2 References

SECTION ONE

1.0 Introduction

As the economy becomes increasingly global, the workforce becomes increasingly diverse.

Organizational success and competitiveness will depend on the ability to manage diversity in the

workplace effectively

1.1 Definitions

Workplace diversity refers to the variety of differences between people in an organization.

Workplace diversity comprises race, gender, ethnicity, disability, sexual orientation, age,

educational levels and socio-economic status. It also includes religious beliefs, life stages,

education, career responsibilities, sexual orientation, personality and marital status

People with different demographic differences working in the organization makes diverse

workforce. And it is becoming more important for the organizations to know about these

differences and how to manage it. Diversity is also the common issue in the workforce

environment, in some companies employees often get discriminated or misunderstood because of

the diverse features. (Sacco, Joshua, Schmitt, Neal, 2005)

1.2 Advantages of workforce diversity

An organization.s success and competitiveness depends upon its ability to embrace diversity and

realize the benefits. When organizations actively assess their handling of workplace diversity

issues, develop and implement diversity plans, multiple benefits are reported such as:

Increased adaptability

Organizations employing a diverse workforce can supply a greater variety of solutions to

problems in service, sourcing, and allocation of resources. Employees from diverse backgrounds

bring individual talents and experiences in suggesting ideas that are flexible in adapting to

fluctuating markets and customer demands.

Broader service range

A diverse collection of skills and experiences (e.g. languages, cultural understanding) allows a

company to provide service to customers on a global basis. A company can market its products

more easily, taking advantages of the different languages of its staff to develop and maintain

distribution partners once thought impossible to reach

Variety of viewpoints

A diverse workforce that feels comfortable communicating varying points of view provides a

larger pool of ideas and experiences. The organization can draw from that pool to meet business

strategy needs and the needs of customers more effectively

More effective execution

Companies that encourage diversity in the workplace inspire all of their employees to perform to

their highest ability. Company-wide strategies can then be executed, resulting in higher

productivity, profit and return on investment.

Attract The Best Talent To Contribute To Your Business:

If an organization has built a reputation for its workplace diversity, it stands to attract the best

available talent and skill in the market both domestically and abroad. The company will be able

to recruit the best available talent from around the globe to work on projects located in the far

corners of the world as part of virtual teams.

Build A Globally Competitive Workforce:

A diverse workforce not only brings professional skills into the office, but also brings people of

different cultures fluent in various languages and who are capable of understanding international

customers' everyday needs. Workforce diversity means the ability to conduct business worldwide

through the varied experience of its employees

Enhance Problem-Solving Efficiency:

Having a diverse workforce comprising different age groups, education, experience and genders,

will make it capable of generating a pool of multiple solutions and ideas which will help to

brainstorm a business problem. Workplace diversity is now recognized for this crucial role in

effective-problem solving.

1.3 Challenges of workforce diversity

Taking full advantage of the benefits of diversity in the workplace is not without it.s challenges.

Some of those challenges are:

Communication – Perceptual, cultural and language barriers need to be overcome for diversity

programs to succeed. Ineffective communication of key objectives results in confusion, lack of

teamwork, and low morale.

Resistance to change - There are always employees who will refuse to accept the fact that the

social and cultural makeup of their workplace is changing. The “we.ve always done it this way”

mentality silences new ideas and inhibits progress.

Implementation of diversity in the workplace policies – This can be the overriding challenge

of all diversity advocates. Armed with the results of employee assessments and research data,

they must build and implement a customized strategy to maximize the efforts of diversity in the

workplace for their particular organization.

Successful Management of Diversity in the Workplace – Diversity training alone is not

sufficient for your organization.s diversity management plan. A strategy must be created and

implemented to create a culture of diversity that permeates every department and function of the

organization.

SECTION TWO

2.0 Factors that motivate organizations to diversify their workforces

As a Social Responsibility

Because many of the beneficiaries of good diversity practices are from groups of people that are

“disadvantaged” in our communities, there is certainly good reason to consider workforce

diversity as an exercise in good corporate responsibility. By diversifying our workforces, we can

give individuals the “break” they need to earn a living and achieve their dreams.

As an Economic Payback

Many groups of people who have been excluded from workplaces are consequently reliant on

tax-supported social service programs. Diversifying the workforce, particularly through

initiatives like welfare-to-work, can effectively turn tax users into tax payers.

As a Resource Imperative

The changing demographics in the workforce, that were heralded a decade ago, are now upon us.

Today.s labor pool is dramatically different than in the past. No longer dominated by a

homogenous group of white males, available talent is now overwhelmingly represented by

people from a vast array of backgrounds and life experiences. Competitive companies cannot

allow discriminatory preferences and practices to impede them from attracting the best available

talent within that pool.

As a Legal Requirement

Many companies are under legislative mandates to be non-discriminatory in their employment

practices. Non-compliance with Equal Employment Opportunity or Affirmative Action

legislation can result in fines and/or loss of contracts with government agencies. In the context of

such legislation, it makes good business sense to utilize a diverse workforce.

As a Marketing Strategy

Buying power, particularly in today.s global economy, is represented by people from all walks of

life (ethnicities, races, ages, abilities, genders, sexual orientations, etc.) To ensure that their

products and services are designed to appeal to this diverse customer base, “smart” companies,

are hiring people, from those walks of life - for their specialized insights and knowledge.

Similarly, companies who interact directly with the public are finding increasingly important to

have the makeup of their workforces reflect the makeup of their customer base.

As a Business Communications Strategy

All companies are seeing a growing diversity in the workforces around them - their vendors,

partners and customers. Companies that choose to retain homogenous workforces will likely find

themselves increasingly ineffective in their external interactions and communications.

As a Capacity-building Strategy

Tumultuous change is the norm in the business climate of the 21st century. Companies that

prosper have the capacity to effectively solve problems, rapidly adapt to new situations, readily

identify new opportunities and quickly capitalize on them. This capacity can be measured by the

range of talent, experience, knowledge, insight, and imagination available in their workforces. In

recruiting employees, successful companies recognize conformity to the status quo as a distinct

disadvantage. In addition to their job-specific abilities, employees are increasingly valued for the

unique qualities and perspectives that they can also bring to the table. According to Dr. Santiago

Rodriguez, Director of Diversity for Microsoft, true diversity is exemplified by companies that

“hire people who are different – knowing and valuing that they will change the way you do

business.”

For whichever of these reasons that motivates them, it is clear that companies that diversify their

workforces will have a distinct competitive advantage over those that don.t.

2.1 Approaches to diversity management

Approaches to diversity management vary. Companies develop diversity management

programmes for a range of reasons. Some companies are active in their approach, i.e. they tend

to introduce diversity management in order to comply with legislation. Others are reactive – they

introduce diversity management programmes in response to circumstance, e.g. when job

applicants come from different ethnic backgrounds. Other companies are more proactive, i.e.

they seek to take business advantage of the opportunities offered by a diverse workforce. Having

a diverse workforce is a business asset and opportunity, rather than a problem to be avoided or

defended against. Taking a proactive approach enables you to identify and realize the potential of

the diverse knowledge, skills and background of the workforce. It also enables the organisation

to fulfill the obligations of social justice and Corporate Social Responsibility. Taking a defensive

and legalistic approach ensures that the organisation will fail to realize its potential.

For an organisation to gain the full benefits of diversity, a coherent diversity strategy is needed to

ensure that all policies and working practices across the business reflect relevant diversity

implications. It needs to be supported with a well communicated value system reflecting the

importance of diversity. All employees should be trained to understand and engage with this in

the way they do their jobs and work with their colleagues.

Diversity strategies need to embrace greater flexibility in both people propositions and customer

and client service delivery and take account of the inclusive nature of the work-life balance

agenda.

Managing diversity also links to ensuring that employee wellbeing is not just a „nice to do. but

an essential element of employee engagement and motivation. Additionally, smart employers

take account of these issues as key components of their employer brand to support the attraction

support and retention of talent

Below are some approaches that can be used to manage diversity in the workplace:-

Overall strategy

. Ensure that initiatives and policies have the support of the board and senior management.

. Remember that managing diversity is a continuous process of improvement, not a one-off

initiative.

. Develop a diversity strategy to support the achievement of business goals, including ways

of addressing the diverse needs of customers.

. Focus on fairness and inclusion, ensuring that merit, competence and potential are the

basis for all decisions about recruitment and development.

. Keep up to date with the law and review policies through checks, audits and consultation.

. Address work-life balance challenges in ways that take account of employee and

organisational needs and offer suitable choices and options.

. Encourage ownership and discourage risk aversion, aiming to create an empowering

culture so that decisions are not passed upwards without good reason.

. Design guidelines for line managers to help them respond appropriately to diversity

needs, as they are vital change agents, but give them scope for flexible decision-making.

. Link diversity management to other initiatives such as Investors in People and total

quality management.

. Be aware that if your organisation operates internationally, its approach to managing

diversity will need to take account of the ways that individual working styles and

personal preferences are influenced by national cultures.

Workplace behaviour

. Introduce a value system based on respect and dignity for all.

. Aim to describe the desirable behaviours to gain positive commitment.

. Make clear that everyone has a personal responsibility to uphold the standards.

. Introduce mechanisms to deal with all forms of harassment, bullying and intimidating

behaviour, making clear that such behaviour will not be tolerated and setting out the

consequences of breaking the organization.s behaviour code.

Communication

. Develop an open culture with good communication channels based on open dialogue and

active listening.

. Use different and accessible methods such as newsletters, in-house magazines,

noticeboards and intranets to keep people up to date with diversity policies and practices.

. Consult people for ideas.

Training

. Build diversity concepts and practices into management and other training and

teambuilding programmes to increase awareness of the need to handle different views,

perceptions and ideas in positive ways.

. Consider awareness-raising programmes about diversity and skills training to help people

work together better in a diverse environment.

. Include diversity issues in induction programmes so that all new employees know about

the organization.s values and policies.

. Train line managers about diversity, aiming to help them understand the issues and drive

them into organisational and operational policies and practices.

Measure, review and reinforce

. Regularly audit, review and evaluate progress and keep qualitative data to chart progress

and show business benefits.

. Use employee surveys to evaluate initiatives, to find out if policies are working for

everyone, and to provide a platform for improvement.

. Track actions to see if they have had the intended results and make appropriate changes if

necessary.

. Include diversity objectives in job descriptions and appraisals, and recognise and reward

achievement.

. Benchmark good practice against other organisations and adopt and adapt relevant ideas

where appropriate.

. Network with others from inside and outside your organisation to keep up to date and to

share learning.

. Celebrate successes and identify learning opportunities from failures, to use them as

building blocks for further progress.

SECTION THREE

3.0 Conclusion

It is clear that companies that diversify their workforces will have a distinct competitive

advantage over those that don.t. Further, it is clear that the greatest benefits of workforce

diversity will be experienced, not by the companies that that have learned to employ people in

spite of their differences, but by the companies that have learned to employ people because of

them.

To achieve success and maintain a competitive advantage, we must be able to draw on the most

important resource – the skills of the workforce. With the increasing richness of diversity in the

world and in the workforce, we need to expand our outlook and use creative strategies to be

successful

Diversity needs to be defined broadly and should encompass a wide range of initiatives that meet

the changing needs of customers and workers.

Leaders and employees should take active roles in implementing these diversity processes which,

in order to succeed, should be fully aligned with core organizational goals and objectives. The

findings in this report illustrate that the benefits of diversity are for everyone.

Diversity is more than a moral imperative; it is a global necessity. Moreover, diversity is an

essential component of any civil society

3.1 Case study- Ericsson

Ericsson, which is known as Telefonaktiebolaget L. M. Ericsson, in its homeland, Sweden, is one

of the largest Swedish companies. Ericsson has a wide portfolio of business activities, including

businesses in telecommunication and data communication systems, mobile networks, mobile

devices and cable TV systems.

Ericsson operates in over 175 countries, with all the richness of backgrounds and cultures this

international outlook implies. The company actively works to ensure that diversity is a

competitive advantage. Ericsson.s broad definition of diversity includes core and personal

differences such as age, gender, race/ethnicity, personality and beliefs; differences based on

experience such as education and work/functional background; situational differences such as

family status; and organizational differences that relate to function and position. The company

seeks to achieve competitive advantage through diversity by constantly striving for a workplace

that leverages, respects and values individual differences. Ericsson.s approach to diversity

focuses on core and personal differences which are cultivated in order to achieve competitive

edge.

Diversity is about promoting an environment where people bring a variety of backgrounds,

styles, perspectives, values and beliefs as assets to the groups and organizations in which they

interact. Respecting and valuing differences in the workplace contributes to the success of the

business and optimizes the willingness and ability of all employees to contribute to that success

too. At Ericsson, working with diversity means constantly striving for a workplace that

leverages, respects and values individual differences, thus positively contributing to team

performance at all levels to increase innovation and customer success.

Diversity is integrated throughout Ericsson and is communicated in a number of ways. Within

the core values – professionalism, respect and perseverance – diversity is at the heart of

“respect,” emphasized as a strength that provides equal opportunities.

At Ericsson, a complex and highly dynamic market environment, coupled with their growth

targets, requires Ericsson to ensure ongoing change processes to retain and develop competitive

advantage. Diversity improves Ericsson.s ability to respond to this ever-changing business

environment by enabling them to better understand and predict customer needs and respond with

creativity and innovation. The assumption is that as present and future customers also become

more diverse, Ericsson will be better able to understand and predict their needs by attracting and

retaining employees that reflect this diversity.

Diversity is a priority for many of Ericsson.s stakeholders, including employees, customers,

shareholders and society. By working actively with equality, diversity and inclusion issues,

Ericsson.s reputation as a responsible corporation is enhanced and the business is positively

impacted. Hence, for Ericsson diversity is not only about being fair; it is also about giving all

stakeholders added value by identifying and seizing opportunities. As such Ericsson does not

espouse a dichotomous view of fairness and business case. It is now established that companies

which embrace the business case for diversity are also likely have more developed ethical and

legal case arguments.

Ericsson’s commitment to diversity

Ericsson declares its commitment to diversity across five important areas:

. Ericsson is committed to equal opportunity in employment, development, compensation

and all other personnel actions, without discrimination due to race, colour, religion,

national origin, gender, sexual orientation, marital status, age or disability.

. Ericsson actively supports the attraction, development, retention and promotion of

diverse talent.

. Ericsson is committed to creating awareness among employees about diversity and

developing the leadership skills necessary to manage a diverse workforce.

. Globally and locally, Ericsson are establishing diversity plans, which include actions and

targets to continuously improve and develop their management of diversity

. Ericsson encourages employees to point out any behaviour not in accordance with

Ericsson.s values or this policy to the appropriate and relevant management level.

These five areas of commitment are also translated to responsibilities for management and

employees:

Managers

. The responsibility of a manager at Ericsson includes attracting people with a wide range

of talents, experience and perspectives, and to develop and empower them to achieve the

company.s business objectives.

. All managers at Ericsson are expected to actively create an environment that values

people with diverse backgrounds, beliefs, values and perspectives, and to see those

differences as assets for the organization.

. Through the performance management process every manager receives feedback on how

they contribute to a diverse work environment and focus on diversity-related goals.

Diversity is an important criterion when appointing leaders in Ericsson. Management and

leadership training programs at Ericsson contain modules on promoting and managing

diversity to support managers at all levels.

Employees

All employees at Ericsson are expected to respect and appreciate differences in the workplace

and communicate and interact with each other with respect.

3.2 References

Chartered Institute of Personnel and Development. (2010) Diversity in the workplace: An

Overview. London: CIPD

Greenberg, J (2004) Article on Diversity in the Workplace: Benefits, Challenges and Solutions.

Colorado: USA, AlphaMeasure, Inc.

Karabacakoglu, F. and Özbilgin, M. (2010) Global Diversity Management at Ericsson: the

business case, in Costanzo, L. (ed.) Cases in Strategic Management, McGraw-Hill: London.

McInnes, R (1999) Workforce Diversity: Changing the way you do business. Diversity World,

www.diversityworld.com.

Stredwick, J (2005) An introduction to Human Resource Management (2nd ed) London, Elsevier

Butterworth-Heinemann Publications