Ollapally-HolisticApproachDiversity-2009

The Holistic Approach to Diversity Management: HR Implications
Author(s): Anita Ollapally and Jyotsna Bhatnagar

Source: Indian Journal of Industrial Relations , Jan., 2009, Vol. 44, No. 3, Corporate
Social Responsibility (Jan., 2009), pp. 454-472
Published by: Shri Ram Centre for Industrial Relations and Human Resources
Stable URL: https://www.jstor.org/stable/27768218
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Contributed Article
The Holistic Approach to Diversity Management: HR

Implications
Anita Ollapally & Jyotsna Bhatnagar
High involvement work systems today Importance of Diverse

reflect inclusiveness and diversity, which Workforce
have emerged in contemporary literature
due to effects of globalization. Trends like Globalization has led to a lot
outsourcing, off shoring, mergers and of activity across borders of
acquisitions, have led to a migratory countries leading to a mobile
workforce resulting in diversity in workforce, which has intensified
organizations. Moving from affirmative the diversity related interventions
action, which was perceived as creating a in organizations. Literature in the
stigma, organizations have embarked on West is replete with data on the
diversity management, a more inclusive increase of non-whites that is
approach. This approach focuses on the Hispanics and African- Americans
unique strengths of people besides giving and also women entering the
each individual an equal opportunity. workforce. The nations' answer to
Organizations worldwide, in their attempt this growing multicu+turalism was
at diversity management, have faced to provide equal opportunities to
problems, as stereotypes are deeply rooted the minorities and that involved
in one s culture and there are resistances having a quota for them.
to change. This paper tries to highlight the Organizations normally adhered to
definition of diversity, the issues associated this, to satisfy the legal require
with it, different initiatives taken by ments. However it was a very
organizations worldwide and the reactive and contingent approach
implications for organizations. and did not and still does not have
any support, even among the
Anita Ollapally is a Research Scholar (0 B) (E-mail:

fpm06anita o@mdi.ac.in) & Jyotsna Bhatnagar is
Today organizations worldwide are
Chairperson, Post Graduate Programme in HR & realizing the importance of a
Associate Professor, HRM area (E-mail: diverse workforce as a source of
ivotsnab@mdi.ac.in) in Management Development competitive advantage.
Institute, Sukhrali, Mehrauli Road, Gurgaon 122001
454 The Indian Journal of Industrial Relations, Vol. 44, No. 3, Jan. 2009

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The Holistic Approach to Diversity Management: HR Implication
minorities. Today organizations world

wide are realizing the importance of a It is necessary to create an
diverse workforce as a source of environment where each individual
competitive advantage. Donkin (2007: has the same opportunity "to
18) articulates it, "the popular argument score".
I have encountered time and again is that,
diversity is good for business," nothing
access to the information necessary for
much is however done in organizations.
success, productive links to other co
The author asserts that workplace
workers and management, the chance to
diversity will actually help reduce the
contribute, and the opportunity to
unconscious bias and prejudices.
advance professionally'' (in press).
Organizations are realizing the benefits
White (2000: 2-3) uses the metaphor
of a diverse workforce with respect to
access to a wide range of information,
"creating a level playing field"
elaborating that it is necessary to create
better decisions, better problem solving an environment where each individual
and more innovation. They are seeing a
has the same opportunity "to score".
direct impact on the bottom line, besides
Respect for employees, customers,
the fact that it increases the brand image
communities, dealers, and suppliers;
of the organization.
appreciation of differences and inclusion
of every person and every perspective
Diversity Management Defined
has been described as diversity. Hewlett,
Luce and West (2005) have stressed on
Many definitions of diversity and the need to redefine diversity, broaden
diversity management exist. Miller and the definition from just inclusion, to
Rowney (2005) have cited the definition
creating a culture of which the minority
of a diverse workforce, provided by the
Canadian Institute of Chartered groups feel a part of and can express
themselves freely. They suggest inno
Accountants and Society of Management
vative policies to meet this end.
Accountants of Canada ( 1996:307) as "a
"Diversity management is a voluntary
workforce made . . . distinct by the
corporate approach to deal
presence of many religions, cultures or
ing with increasing demographic
skin colours, both sexes (in non-stereo
diversity in the workplace" (Ng & Burke
typical roles), differing sexual 2005:. 1196). It is suggested by Robinson
orientations, varying styles of behaviour, and Dechant (1997:22) that a lot of
differing capabilities, and usually, unlike
companies prefer using a broad
backgrounds". Douglas (2008) has definition of diversity to include,
described what diversity in the US stands
"differences in gender, racio-ethnicity,
for and what it strives for and stresses
age, physical abilities, qualities, and
that "the goal is inclusion, a systematic sexual orientation, as well as differences
business strategy to make certain that
in attitudes, perspectives and
everyone in an organization shares the
background". Vedpuriswar (2008: 76)
same advantages: a voice that is heard, defines diversity as the "variety arising
The Indian Journal of Industrial Relations, Vol. 44, No. 3, Jan. 2009 455

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out of the educational, cultural, racial, useful tool to better organizational

ethnic, age, religious and gender performance, provided the top manage
differences". ment of the organization is convinced of
its benefits (Robinson & Dechant 1997).
Scholars and practicing managers
alike have tried to differentiate between Scope of Diversity
the policy of affirmative action and
providing equal opportunity, with There are many different groups that
managing diversity. Diversity manage come under the umbrella of diversity.
ment allows organizations to leverage While gender, race, disability, ethnicity,
the diversity, accruing benefits from it, language, and age are commonly known,
besides organizations embark on it religion, sexual orientation, education,
voluntarily as compared to affirmative experience are becoming more import
action (Ng &Burke 2005). GroschI and ant. It may be seen that the emphasis in
Doherty (1999) have differentiated organizations may vary from country to
between the two, citing Kandola & country. For example in India most
Fullerton ( 1994) who have stated that the company policies are focused on gender
and disability. However in the US,
former two, are both driven by the need
besides gender and disability, race,
to satisfy the law whereas the latter is to
improve organizational performance. ethnicity and sexual orientation are
They have extended the differentiation given importance. There are differences
on the basis of the assumptions even within a particular group. Even
underlying the two; the former is aimed within gender as a type, one must not
at disadvantaged groups, the latter assume that one policy is suitable for all.
believes everyone is unique. Affirmative Syed (2007) brings out an interesting
action is assumed to stigmatize the aspect of the discrimination of the
minority ethnic woman as compared to
the mainstream woman in a study in
Diversity management can be a Australia. Recently there has been a
useful tool to better organi spate of literature on a different kind of
zational performance, provided diversity, namely relational diversity
the top management of the (Chan & Wu 2008). While relational
organization is convinced of its demography is found to increase
benefits interpersonal attraction, trust and the
liking of their supervisor; other
managerial literature suggests that the
minorities and thus, they have detached effects on performance outcomes are
themselves from it (Ng & Burke 2005). only at the surface level or short term.
Diversity management thus involves Chan & Wu (2008) investigated the
more than just providing equal opportu mechanism of relational demography in
nities to men and women (Sub & Kleiner the supervisor-subordinate dyad by
2008). Diversity management can be a examining the mediating role of

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communication satisfaction. Results 1997), competition (White 2000)

demonstrate that communication lawsuits (Robinson & Dechant 1997)
satisfaction fully mediates the and the management style of the CEO
relationship between hometown (White 2000). Sometimes it takes just
similarity, (but not age or gender one incident, like when an employee
similarity) and satisfaction towards confronted a CEO about her problems
supervisor. In the beginning of the in the organization and when women
relationship, hometown similarity acts as began to leave as a result of being
a step-stone to enhance their relationship bypassed (White 2000).
through easy commu-nication. Such
effects can be short-term and may Organizational Consequences
diminish over time. In the long run when
supervisor and subordinate interact with Organizations where diversity is not
each other and know each other better, managed or even recognized, are ones
it is the communication satisfaction, where minorities feel cut off from the
which serves as a deep level factor, social network (Heames, Harvey &
increasing the satisfaction towards Treadway 2006, Bryan 2000) are
supervisor. The results provide useful discriminated in terms of the kind of jobs
knowledge to both researchers and and compensation, leading to increased
managers in managing workforce absenteeism and turnover (Robinson &
diversity especially in multinational Dechant 1997, Tsui, Egan & O'Reilly
corporations. Guillaume, Brodbeck and 1992). When the African Americans felt
Riketta (2008) found in their study using that there was no importance given to
meta-analytic and structural equation the concept of diversity in the organi
modelling techniques, negative effects of zation, absenteeism was higher and it
surface and deep-level relational was especially so when the superior was
diversity on social integration. More of the same race (Avery et al 2007).
over, social integration mediated the Buttner, Lowe & Harris (2008) demons
overall negative effects of surface-level trated that when employees perceived a
relational diversity on individual breach in the psychological contract
effectiveness (lower task and contextual pertaining to promises made, with
performance, higher turnover), but respect to diversity, they showed lower
suppressed the overall positive effects of commitment and higher intentions to
deep-level relational diversity (higher leave. The above study also showed the
task and contextual performance, lower effect of the interaction of procedural
turnover). justice and the implementation of
diversity practices, indicated by organi
Some of the reasons that cause zations on the commitment of emp
organizations to embark on diversity loyees.
management include shortage of skill or
talent, (Devine 2007), globalization, There is also creation of an in group,
high turnover (Robinson & Dechant out group divide and stereo-typing,

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leading to lower commu-nication and in a loss of talent (Donkin 2007,

creativity (Cox & Blake 1991).It has Nyambegera 2002, Bryan, 2000 Cox &
been suggested that employees may Blake 1991).
experience stress as they try to "fit in"
and this may lead them, to act,
involving behaviours like, bullying and
Many women, due to the
predominant "hidden bias91 in
others (Heames, Harvey & Treadway
organizations, are suspicious of
2006: 349). It is seen that most
their employers and are unable to
employees come into the organization share information about their lives.
with preconceived notions of other
groups, as a result of their experiences
in the diverse neighbourhoods in which Source of Competitive Advantage
they live (Brief et al 2005). Many
women, due to the predominant Organizations have realized that
"hidden bias" in organizations, are managing diversity creates a competitive
suspicious of their employers and are advantage (Cox & Blake 1991). Having
unable to share information about their a diverse workforce enables the
lives (Hewlett, Luce & West 2005:77). organization to be representative of the
A Sears executive interviewed by the customers in the market, leading to the
authors, indicated that minority advantage of meeting the needs of a large
women, tend to "deny their and diverse customer base (Thomas &
authenticity" so as to remain Kanji 2004, Allen et al 2004, Groschl &
inconspicuous and merge'with the Doherty 1999, Robinson & Dechant
stereotypical white model (Hewlett, 1997, Cox & Blakel991). Having a
Luce & West 2005: 78). This leads to diverse workforce and diverse teams
missing out on crucial information of leads to multiple perspectives (Taylor &
one's employees with respect to their Gr?ve 2006; Dahlin et. al 2005, Allen et
talents and skills. A different set of al, 2004) leading to better decisions
issues crop up with respect to (Dahlin et. al 2005,Van Der Vegt et al,
transsexuals. The person concerned, 2005, Allen et al 2004, Groschl &
experiences fear and a lack of trust and Doherty 1999, Cox & Blake 1991) more
this may be justified, as they are most innovative ideas (Vedpuriswar 2008,
often ostracized, laughed at and Dahlin, Weingart & Hinds 2005, Allen
taunted (Barclay & Scott 2005). All the et al 2004, Groschl & Doherty, 1999, Cox
above mentioned causes a lower level
& Blake 1991) quality improvement
of psychological attach-ment in (Groschl & Doherty 1999) increased
employees (Tsui, Egan & O'Reilly productivity fGroschl & Doherty 1999)
1992) and lower level of satisfaction and thus better performance and growth
with regard to the organization and the in business (Robinson & De Chant
work (Nyambegera 2002,Tsui, Egan & 1997). Yang (2008) demonstrated that
0'ReiIly,1992). Prejudice leading to while there is a positive relationship
discrimination while recruiting, results between the proportion of white women
458 The Indian journal of Industrial Relations, Vol. 44, No. 3, Jan. 2009

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and innovation there is also a positive related to the "competitive strategy and
relationship between the non-white financial effectiveness" (Robinson &
women and innovation, provided they Dechant 1997:27). Dahlin, Weingart and
have greater participation and Hinds ^2005) differentiated between
engagement in the activities than their educational diversity and national
diversity, indicating that the former leads
to positive outcomes while the latter to
Companies whose practices reflect both positive and negative. Ng &Burke
diversity management and those (2005) cite Cable and Judge (1996) and
who publicize it are considered Judge and Cable (1997) to show that if
more appealing to potential the espoused diversity values of the
employees. organization match those of the
individual, then they will be attracted to
white colleagues. Chief diversity officers the organization. The person- organi
have now moved from only managing zation fit can prove beneficial to
diversity to overlooking innovation organizations in the form of increased
efforts in companies (Johansson 2005). commitment and reduced turnover (Saks
Including diversity practices as part of & Ashforth 1997). Companies whose
the definition of high performing work practices reflect diversity management
systems was associated positively with and those who publicize it are considered
employee productivity and innovation more appealing to potential employees
and negatively with turnover (Amstrong (Sub & Kleiner 2008, Ng & Burke 2005).
et al 2008). The companies who successfully carry
out diversity initiatives obtain the
Studies have shown that top respect of people and have a higher
management composition has 'tripli standing among their business
cations for organizations. Cannella, Park counterparts. With the business land
and Lee (2008) found that the location scape being so turbulent and uncertain,
of offices of the top management team diversity management is seen to support
and the environmental uncertainty talent management (Robinson &
moderated the relationship between the Dechant 1997, Groschl & Doherty 1999,
functional diversity in the TMT team and Forbes 2008). Managing diversity is also
firm performance, with the relationship financially beneficial for the company
becoming more positive with increasing as it reduces cost due to turnover (Sub
proximity. They also found that as & Kleiner 2008, Groschl & Doherty
environmental uncertainty increases, the 1999, White 2000; Cox & Blake 1991,
effect of intrapersonal functional Robinson & Dechant 1997) and law suits
diversity becomes more positive. (Groschl & Doherty 1999). High
Richard & Shelor (2002) demonstrated performance work systems that
that low and moderate age heterogeneity incorporate diversity practices are said
lead to increase in sales. Top to impact efficiency and innovation
management diversity is positively (Flood et al 2008).

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of women and thus hire only male

High performance work systems candidates (Nieva & Gutek 1980) as
that incorporate diversity practices cited by Ng &Burke (2005:1196).
are said to impact efficiency and Sometimes the organizational culture
innovation. and subcultures prevent the realization
of HR policies and practices (Palthe &
Today stress levels in organizations
Kossek 2002). However other
researchers like Barclay and Scott
are high, with long hours and hyper
(2005) indicate that the very practice of
competition. In the midst of this,
discrimination and the consequences of
diversity management may actually
cause divisions or reinforce the divide
it, are an added Stressor, thus an inclusive
between groups. Stevens, Plaut & Burks
culture will help deal with this.
(2008) have identified the two most
Vedpuriswar (2008) stresses on moving
frequently used diversity initiatives in
beyond the surface, to focus on more the US as colourblindness and
enduring values, beliefs and viewpoints
multiculturalism, cautioning that while
and understanding the similarities that
these have benefits, they also lead to
are hidden behind the varying external
certain organizational members feeling
characteristics. Being aware of biases excluded.
and appreciating diversity is the key to
global harmony.
Sometimes the organizational
Barriers to Diversity Management culture and subcultures prevent the
realization of HR policies and
While organizations are becoming practices.
more aware of the impact of diversity
management on every aspect of their
Though organizations profess that
business, they also realize that it is not
they value diversity, their actions do not
an easy task to bring about change. There
reinforce it and there appears to be large
are resistances to diversity initiatives and
gaps between espoused beliefs and
these may occur in the form of
practices and what really occurs (Johnson
"stereotypes and prejudices" (Bryan
& Avery 2006). Sub and Kleiner
2000:14) that exist in the minds of
(2008:44-45) indicate how some large
people. The stigma attached to organizations profess diversity manage
affirmative action, where women are
ment as a "fa?ade of legitimacy" as it is
perceived to have lower capability and
expected of them. There are others who
skill (Heilman 1997, Heilman etat 1997)
also evokes resistance. This leads to are unable to consider diversity issues
criticism from those who feel sidelined
and their resistance (Miller & Rowney
1999). This could also be because these
as a result of favouritism to the minority
organizations do not perceive direct
groups (Miller & Rowney 1999). There
effects on their perfor-mance (Robinson
appears a tendency in organizations
& Dechant 1997).
where "men prefer men's work" to that

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Worldwide Initiatives organizations have resorted to

(Youngblood & Cook 1984) as cited by
At the individual level, the focus is (Cox & Blake 1991). A leader's
on improving emotional intelligence and strategies can create a culture where
interpersonal skills in managers. Many different ethnic groups can feel more
organizations have a mentoring comfortable and overcome their mistrust
programme (White 2000). Earley & (Forbes 2008). As a result of glob
Mosakowski (2004:139) go one step alization, today's leaders have to lead
further and suggest training and employees who come from diverse
developing cultural intelligence in backgrounds and cultures. Weber &
managers and leaders. This they refer to Sadri (2008) have explored the
as the ability to judge "unfamiliar and relationship between the ratings of
ambiguous gestures" in the way employees, based on their perceptions of
somebody of that person's culture how their leader values differences and
would. They suggested getting minority the rating of their leader's boss on the
people in contact with boards of non latter's performance. They have also
governmental organizations, so that they examined the effect of performance
can develop leadership skills. Hewlett, orientation, the GLOBE cultural
Lguce and West (2005) discovered that dimension, on this relationship.
minority employees take part in many
activities outside their work life, in their At the group level, developing
diversity related HR practices is needed
(Ng & Burke 2005). Bryan (2000)
Minority employees take part in stresses the importance of including
many activities outside their work people with disabilities, in training
life, in their communities, which programs. He recommends the need to
help them learn new skills and hone challenge categorizations in the work
their abilities.
place and create a team environment
where people work together. Cox and
communities, which help them learn new Blake (1991) suggest the use of focus
skills and hone their abilities. They have groups to identify problems and get
recommended that minorities should different perspectives. Women leave due
mentor professionals of their community to the culture of the organization, thus
to gauge their talent and leadership most companies have formed commit
abilities. Women have twice as many tees (White 2000), task forces (Thomas
responsibilities, so flexi-timing (Hewlett, & Kanji 2004; White 2000) and councils
Luce & West 2005, Cox & Blake 1991) (White 2000) to understand their issues
and telecommuting, (Hewlett, Luce & better and deal with them. This has led
West 2005) as benefits, should be to the empowerment of women and the
provided to them in order to reduce creation of a culture more suitable to
absenteeism. ln-house day care centres them (Thomas & Kanji 2004). Kossek,
are another women friendly policy that Markel and McHugh (2002) give an

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Anita Ollapally Sc Jyotsna Bhatnagar
example of an organization that reward discriminate between people. Ng &

ed those departments that encouraged Burke (2005) have cited literature to
multiculturalism. Their study also reinforce this importance especially for
implied that HR's attempt at developing women, as this may be their only access
diversity strategies in isolation may not to information about the company due
bring about the desired changes, if they to reduced opportunities through
do not take into account the "group referrals (Kirnan et al 1989, Giscombe
tipping points". & Mattis, 2002). This also gives them
an idea of what can be expected in the
At the organizational level, it is organization in terms of culture (Rafael i
important that the top management be & Oliver 1998). In a study it was shown
convinced about the relevance and that women and ethnic minority
importance of managing diversity. applicants accepted offers and applied
Employees' perception of diversity in the to those organizations that were
top management and the non-manage perceived as diverse and high
ment levels is positively related to performing individuals and new
perceptions of organizational perfor immigrants, rated such organizations as
mance (Allen et al 2008). The next step attractive (Ng & Burke 2005). Avery
in the process would be to commit (2003:675) however indicates that the
resources to the diversity management "other group orientation" needs to be
programme, so that they can be carried considered, as in their study, African -
out without obstacles (Sippola & Smale Americans who perceive this, tend to
2007). It is important to create a culture be attracted to organizations that do not
of inclusion where the minority groups advertise a diverse workforce.
can feel comfortable and included.
Avery, McKay, Wilson and Volpone Having interculturai events at the
(2008) have attempted to solve the workplace, sends out a message of
problem of not having enough time to commitment to diverse cultures. This
forge relationships with employees due was the suggestion given by migrants in
to job hopping. They have demonstrated the hospitality sector in Ireland, as a
that a feeling of inclusiveness moderates result of a study done by Devine et al
the effect of seniority (the tenure) and is (2007). Chase Manhattan Bank focuses
positively related to organizational on what they refer to as "micro
attachment. inequities" - "subtle messages that
devalue and impair performance and
Advertising (Avery 2003), employ cumulatively affect self esteem and lead
ment messages (Ng. & Burke 2005, to loss of productivity" (White 2000:3).
White 2000, Bryan 2000) and internal In order to reinforce the right kind of
newsletters (White 2000) reflecting the attitudes towards diversity among the
diversity that exists in the organization employees, organizations need to link
are important, as it indicates to the compensation, to the extent that
employees that the organization does not managers recruit minority talent

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(Hewlett, Luce & West 2005, Allen et al Bryan (2000:19) cites Cook (1978)
2004, Avery 2004), meet diversity to list the important factors that must
management objectives and reward occur at the organization level for
egalitarian behaviours, thus making diversity management to be a success.
managers accountable (White 2000). They are "equal status, interdependence,
Lastly it is important to check norms that indicate egalitarianism,
periodically if the initiatives are on the approval by top management and high
right track and are having the right acquaintance potential". Organizations
effects (Avery 2004). Some companies (Bryan 2000, Hewlett, Luce & West
have developed a diversity scorecard 2005) and especially leaders (Cox &
(Hallman 2007, White 2000) and others Blake 1991) need to be committed and
do research and collect data (Cox & walk the talk with respect to the diversity
Blake 1991). Cox and Blake (1991) initiatives. In order for diversity
emphasize the need to have a regular initiatives to succeed and be sustainable,
cultural management audit. Mastercard it needs to be incorporated as part of the
has an "Open door" process to handle strategy of the company (Forbes 2008,
all issues pertaining to diversity Kossek, Markel & McHugh 2002). In
initiatives (White 2000:5). For MNC's, Allen et al (2004) study of 396
it is also important to have integrating employees, 68% viewed diversity as a
mechanisms and adopt a multi-domestic long term strategy of the company.
approach with respect to the policies and Making business students 'diversity
initiatives related to diversity competent' is extremely important
considering the organization's workforce
is only becoming more diverse (Avery
Certain diversity initiatives can go & Thomas 2004: 392). More recently
against the very reason they were there has been research which looks
instituted and lead to feelings of beyond just the impact of initiatives, to
exclusion in the beneficiaries. the attributes and processes that make
them effective (Akinola & Thomas
management (Sippola & Smale 2007). 2008). The above study explores the
Stevens, Plaut & Burks (2008) reasons behind why the minorities are
discovered that certain diversity not retained and promoted.
initiatives can go against the very reason
they were instituted and lead to feelings Phases of Diversity Management
of exclusion in the beneficiaries and thus
recommend an All- Inclusive Multi Many researchers have proposed
culturism(AIM) model. This they stages that an organization should go
indicate, will serve as a mechanism for through to transcend from a traditional
to a multicultural one. Richardson and
positive organizational change by
encouraging positive relationships at Skinner (1991) stress on three stages,
work and the development of people so "the reactive, strategic, and adaptive
that they can maximize their potential. stages to become multicultural organi

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zations", cited by Moore, Parkhouse & (2005:619) have demonstrated that an

Konrad (2004:305). Others like Cox and increase in the percentage of dissimilar
Blake (1991:52) have suggested that others, did not increase supportive
^Leadership, Training, Research, relations in groups especially if they
Analysis and Change of Culture and were from different races. They refer to
Human Resource Systems and Follow
up" are important. Chrobot et ai (2007)
Firms that have institutional
have listed four strategies, de-cate
gorization, re-categorization, sub diversity structures fare worse than
distinct firms with a few or no
categorization and crosscutting that a
leader must embark on to create a diversity initiatives.
multicultural organization.
this as the "homophily effect".
Role of HR in Managing Diversity Konrad,Yang & Maurer (2008) have
confirmed that customization of
As globalization and diversity institutionalized diversity practices to
increases, HR policies must change to one's firm, such that it has been
take advantage and leverage these strategically linked to the organizational
differences (Fujimoto & H?rtel 2006). strategies, will lead to better firm
For HR professionals, managing performance. They also suggest that
diversity is the biggest challenge those firms that have institutional
(Benschop 2001). Chiu & NG (2001) diversity structures fare worse than
have indicated that HR in organizations distinct firms with a few or no diversity
should be sensitive to the different needs initiatives.
of single and married women employees,
while devising policies. In order to create HRM practices of the MNC
subsidiaries seem to be affected by the
country of origin of the firm's parent
Organisation should be sensitive to company and also by the local
the different needs of single and environment of the host country. Hence
married women employees, while there is a need to study and incorporate
devising policies. the latter's effect on international
management and HRM studies (Bae et
a positive climate for diversity in the al. 1998). Research has shown that HRM
organization, Kossek, Markel and practices differ across countries. In a
McHugh (2002:347), suggest that the study done in India and China, it was
number of women hired in the seen that while these two countries are
organization should reach a 'critical similar in some ways, they also differ on
mass' for some change to occur and that economic development, rules, policies,
this critical mass should also be religion, language, gender policies etc.
maintained at senior positions. All of these will affect the extent to
Bacharach, Bamberger and Vashdi which organizations look at diversity and
464 The Indian journal of Industrial Relations, Vol. 44, No. 3, Jan. 2009

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its management (Cooke & Saini 2007). zations are far behind their US
It was found that India focused more on counterparts with respect to in
diversity management than China. The corporating diversity initiatives and
"beneficial effects of demographic there are organizations in India where
diversity is culturally bound," (Van Der women are still not found in the top
Vegt, Van De Vliert & Huang management. Working women in some
2005:1180), impacting human resource organizations are still struggling with
management in multinational organi their commitments, as their companies
zations. Scholars all over the world are have not provided child care or flexible
now criticizing the "convergence work hours (Vedipuriswar 2008).It
hypothesis" and are looking at the effect appears that there is a lack of studies
of the societal/national culture on the demonstrating the usefulness and
organizational culture and the need to success of certain diversity management
develop suitable actions (Bae et al. initiatives, thus the lack of guidelines for
1998). In a study of job satisfaction HR professionals while they are
among employees working in Mainland designing them (Curtis & Dreachslin
China, in companies whose origin is 2008).
Taiwanese and Taiwanese employees, it
was seen that there were considerable SHELL Diversity Management
differences between the two, reinforcing
the need for different HRM strategies for Mahajan (2006:178) illustrates the
"Group Diversity Framework" created
different countries (Wu & Chiang 2007).
Another study demonstrated that the by SHELL with six main components
power distance of a society moderated that support their diversity management
the relationship between demographic efforts. In order to inculcate and
diversity and innovation in organizations transfuse inclusiveness across the
(Van Der Vegt, Van De Vliert & Huang organization, SHELL has "Diversity and
2005). Inclusiveness" as one of the important
values in the organization. Across all
Robinson and Dechant (1997) their companies worldwide they have set
suggest that HR personnel need to up a Group Diversity and Inclusiveness
present a case for diversity, projecting Standard to enable them to have a more
the impact and the competitive organized approach to diversity
advantage, of maximizing the potential management. The components of the
of a diverse workforce. They have framework include the following:
identified four steps in this regard: a)
determining business objectives and Leadership Commitment and
needs, b) identifying actions for each Accountability for Change: The entire
objective and need, c) conducting a cost organization from the leader down to the
benefit analysis, and d) developing supervisors is accountable to bring about
tracking mechanisms to assess progress the change towards inclusiveness. It is a
and financial impact. Indian organi collective effort and creates a dynamic

101.128.97.100 on Sun, 20 Oct 2024 18:25:36 UTC
culture towards diversity management. what they preach. At every meeting a

"Meeting Inclusiveness Checklist" is
Standard Development and used, where every employee present,
Governance: The diversity standard anonymously rates the level of
created by the company provides the inclusiveness perceived during the
framework for the diversity practices. meeting. This helps inculcating a
The company has set up diversity tradition of inclusivity and acceptance
councils that have senior representation among employees. By focusing on
and teams comprising employees across diversity, SHELL has ensured sustain
countries and businesses, towards a able growth and development.
dedicated effort to diversity manage
ment. IBM Case
Strategic Plans and Objectives: The Another company, long known for its
diversity plans are charted out from the diversity focus, is IBM (Thomas &
organizational strategic plans and are an Kanji 2004). From its onset IBM hired
important component of the latter. women and black employees and in 1914
it hired its first disabled employee setting
Supporting Systems and Resources: the stage of creating a culture of
Investment in the form of either time, inclusion. Right from the beginning,
money or people is expected towards IBM's top management promoted equal
creating a diverse workforce and a opportunity. IBM's commitment to
culture of exclusivity by all SHELL diversity can be understood by the
group companies. Systems and teams number of awards it has received over
have been set up to guarantee focus and the years, 1989 National Society of
smooth execution of the plans. Black Engineers Employer of Choice
Award, 2003 New Freedom Initiative
HR System Integration: HR has a Award for innovative effort towards
major role to play in this endeavour. disability employment. The management
There is a strong diversity focus in all soon realized that they had not leveraged
the HR practices and processes. it. The title of Office of Equal
Opportunity was renamed as Office of
Monitoring Performance, Commu Workforce Diversity as early as 1991.
nicating Results and Continuous
Learning: An audit is conducted on all The company set up eight executive
the efforts toward diversity management level task forces that included, Asian
so as to understand the impact and Black, Gay, Lesbian, Hispanic, Native
evaluate the performance. This is American, People with Disabilities,
communicated to all the employees and White men and women. Senior leaders
also the public. were given responsibility for the smooth
functioning of these groups. The task
SHELL also believes in practicing force consisted of employees belonging

101.128.97.100 on Sun, 20 Oct 2024 18:25:36 UTC
to the constituency but from across advantage. Managing diversity is

different divisions. While initially important and should be part of the
people did not take it seriously, over time strategy of the company, as it has an
they realized the benefits of it. The task indirect and a long term effect on the
forces contributed to work-life strategies bottom line. While many organizations
for men and women, mentors for black profess their priority to diversity, very
employees for development, Domestic few walk the talk for attracting and
Partner benefits for gays, lesbians and retaining the elusive talent of today. A
bisexuals etc. A number of projects holistic approach to diversity manage
based on the needs of the different ment needs to be established, where not
constituencies resulted from this effort. only are initiatives introduced but
This promoted inclusiveness and attitudes to them and the people are also
allowed the company to focus on the managed. A new trend is visible in
needs of every group. This not only organizations in India, with a few
helped IBM create an inclusive culture beginning to focus on diversity
but also reach out to more customers in management. However we have a long
each constituency based on recommend way to go.
ations from the members. IBM is a very
successful company today and is a case Fig. 1 presents the process of
of diversity management making diversity management .
business sense.
Once the leader becomes aware of
Conclusion the need for diversity management, with
the help of the HR function, he can cull
Due to the changing business out practices and policies (based on the
landscape, the demographics of the organizational strategy) for the same.
workforce is changing. It is imperative However the success of these practices
for organizations to understand this shift depends on the existing culture of the
and take proactive steps to leverage it, organization and the prejudices people
as it can be their source of competitive have as a result of their cultural
Fig. 1: Conceptual Diversity Management Model
Organizational Socio cultural

Strategy ! attitudes
Awareness HR Policies Diversity

Turnover Of the need Practices Management
Leader | Organizational Employer"

Culture .Branding,
467
The Indian Journal of Industrial Relations, Vol. 44, No. 3, Jan. 2009

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background. If the company is successful Management Competency", Academy of

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The Holistic Approach to Diversity Management: HR Implications

Author(s): Anita Ollapally and Jyotsna Bhatnagar

Stable URL: https://www.jstor.org/stable/27768218

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The Holistic Approach to Diversity Management: HR

Anita Ollapally & Jyotsna Bhatnagar

High involvement work systems today Importance of Diverse

Anita Ollapally is a Research Scholar (0 B) (E-mail:

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minorities. Today organizations world

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out of the educational, cultural, racial, useful tool to better organizational

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communication satisfaction. Results 1997), competition (White 2000)

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leading to lower commu-nication and in a loss of talent (Donkin 2007,

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of women and thus hire only male

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Worldwide Initiatives organizations have resorted to

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example of an organization that reward discriminate between people. Ng &

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zations", cited by Moore, Parkhouse & (2005:619) have demonstrated that an

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culture towards diversity management. what they preach. At every meeting a

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to the constituency but from across advantage. Managing diversity is

Fig. 1: Conceptual Diversity Management Model

Organizational Socio cultural

Awareness HR Policies Diversity

Leader | Organizational Employer"

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background. If the company is successful Management Competency", Academy of

References Bae. J.. Chen, S. & Lawler, J.J. (1998),

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Analytic Integration", Paper presented at Recruiting Source, Applicant Quality, and

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strategy into practice", Journal of Sub, S. & Kleiner, M. (2008), "Dissemination of

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Satisfaction between Mainland China and Involvement", Paper presented at the

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