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WORKFORCE DIVERSITY

CHAPTER 1

Diversity entails much more than just the differences that exist among people of different
cultural backgrounds. Diversity implies a multidimensional mixture and includes a variety of
dimensions in often complex combinations. Other differences also constitute diversity such
as age, experience, marital status, family status, national heritage and skills. Also part of
diversity is a variety of aspects like, religion, health, culture, parental status, income and
physical ability.

There are two categories of differences between people. There are the primary and
secondary categories. Primary dimensions are those personal characteristics that are inborn
and which have an important and sustained effect on our whole life. These characteristics
cannot be changed and are also directly observable by other people. Examples include race,
gender, age, physical abilities and sexual orientation. Primary dimensions of diversity also
comprise those differences that are likely to evoke responses such as bias, prejudice and
stereotypes amongst people.

Secondary dimensions comprise those differences that people have control over and that
can be changed by choice. This includes differences that people acquire, discard and modify
throughout their lives and they are less visible. Examples include educational background,
geographic location, income, marital status, military experience, parental status, religious
beliefs and work experience.

Clements and Jones highlight that to embrace diversity is to come to a position of believe
that the ways in which we all differ:

Are realities that should not and must not be ignored
Do not equal difficult or problem
Mean that we can accept that people see the world differently and that those world-
views have equal validity
Are not threatening
Are positive things rather than negative
Are to be inclusive rather than exclusive
Are likely to involve some personal change

Diversity in the workplace suggests that people should be managed differently. To motivate
people, one should manage their needs and expectations on both the personal and career-
related levels. Companies that want to diversify their employees and manage their diverse
workforce effectively should adapt their policies and procedures to some extent in order to
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accommodate the variety of needs and expectations amongst their employees. Managing
diversity is regarded as a management approach or strategy that should incorporate
strategies, policies and procedures aimed at managing workforce diversity effectively.

Managing diversity and related terms

1. Black advancement

Black advancement refers to interventions and strategies based on the belief that there
is nothing more unequal than the equal treatment of unequals. The assumption is that
black people do not have the resources to succeed in business. Because of the fact that
black people are so disadvantaged, they will only be able to advance in the organisation
by means of special development and training programmes that should be provided by
the organisation. It is thus seen as a way of empowering black employees to increase
their managerial skills and abilities, as well as their ability to take control of material and
other resources. This will help them advance into management and enhance their
socioeconomic status. Black advancement interventions include programmes such as
literacy training, quality education, accelerated on-the-job training, mentorship and
other related programmes. From a broader perspective, black advancement includes an
improved quality of life for instance, a good salary, decent housing, educational
assistance, community development.

2. Affirmative Action

Affirmative action is a temporary intervention aimed at rectifying the historical injustices
inflicted upon specific groups in terms of occupational advancement and social, political
and economic upliftment. It is an attempt to level the occupational and socio-
economical playing field so that everybody can compete, based on equal access to
education, training and occupational opportunities. It is thus a business strategy aimed
at transforming the social and economic environment.

Affirmative action strategies are short term, occupational advancement strategies based
on preferences in hiring and promoting people for previously disadvantaged groups.
The objective is to give these groups access to job opportunities based on their potential
to be able to do the job. Affirmative action is enforced through law.

In South Africa affirmative action has increasingly become a politicised practice
therefore whether you are against or for it depends on your personal and political
beliefs and values. Affirmative action is a necessary step in the process to utilise the
diversity in South Africa for national and global economic and political advantage.

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3. Employment Equity

The principle that applies to employment equity is that all people should be given equal
access to job opportunities within a company. There should be equal employment
opportunities for all. Equal access is given on the basis of merit, ability and potential.
The aim of employment equity is to create a workplace where decisions about hiring or
promotion are based only on factors that pertain to a persons ability to do the job in
question, and not on attributes specific to a group. Employment equity prohibits all
forms of discrimination based on race, gender, physical handicaps, and sexual
preferences.

Employment equity is also legally driven by the Employment Equity Act of 1998. The aim
of the Employment equity act is to achieve equity in the workplace through the
elimination of unfair discrimination, as well as through the implementation of
affirmative action strategies. Despite prohibiting discrimination in all forms,
employment equity also refers to the transformation in the workplace through fair
discrimination. Fair discrimination allows for targeted affirmative action strategies and
actions to redress the disadvantages that designated groups in the workforce
experienced in the past. To achieve this, the organisational environment should be
receptive to all new entrants at all levels in the organisation.

Unfair discrimination is regarded as discrimination in employment practices on the basis
of a persons affiliation to a variety of groupings, including age and gender. Every
employer in South Africa is required to draw up and maintain an employment equity
plan which includes 1) an analysis of current employment to eliminate possible
discriminatory practices and 2) setting objectives and establishing a timetable with
realistic human resource targets to ensure a representative workforce.

Employment equity might be very confusing to develop and implement because of the
two opposite poles of discrimination fair and unfair discrimination. The Employment
Equity Act expects South African employers to comply simultaneously with both sets of
guidelines, based on two distinct sets of values.

4. Valuing Diversity

Valuing diversity emphasises the awareness, recognition, understanding and
appreciation of human differences. This means that people value the qualities that
different employees bring to the workplace and not judging or rejecting opposing views
and ideas. This approach is based on the assumption that undesirable behaviour and
conflict in the workplace derive from a lack of awareness and understanding. Valuing
diversity creates an organisational atmosphere in which all employees feel valued and
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accepted. This generally happens through training, orientation and awareness
programmes. Interventions focus on changing current differences in values, attitudes
and behavioural styles. The objective is to enhance effective interaction and lessen
blatant expressions of racism and sexism.

De Beer and Riley present the following steps in the process of an intervention aimed at
valuing differences:

1. Stripping away stereotypes
2. Learning to listen and probe for differences in peoples assumptions
3. Building authentic and significant relationships with people you regard as
different from yourself
4. Enhancing personal empowerment
5. Exploring and identifying group differences

An organisation in which diversity is valued is one in which employees have learned to
accept individuality and avoid prejudice and stereotyping. It does not imply behavioural
changes, because people resist diversity awareness training. It makes people
uncomfortable to talk openly about personal differences and their impact on other people.

5. Managing diversity

Thomas and Robertshaw list some of the problems that have been experienced with
affirmative action programmes:

Lack of trust between subgroupings in the organisation
Breakdown in communication between subgroups
Prejudices and stereotypes
Poor teamwork
Intergroup conflict and decreased productivity
High staff turnover
Unhealthy competition

It is evident that while occupational and development strategies such as affirmative
action and employment equity can be legislated and forced upon employees, they will
not be sustained if the organisational environment is not prepared to sustain the
changes brought about by such initiatives. For these initiatives to be effective and
environment must be created that will foster the increasingly diverse workforce.
Managing diversity seems to be the process that will help in creating such an
environment, but without excluding strategies such as affirmative action and
employment equity. Thomas acknowledges that organisations may be doing the right
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thing by appointing people from previously disadvantage groups, but she believes the
most critical issues are not being addressed in this regard:

What is not being address however are the issues most critical to success of
developing and maintaining a truly diverse workforce at all levels. Such issues
include organisational culture, structures and policies which, if not adjusted to the
process, in all likelihood will render null and void the positive effects of all the other
efforts. Clearly what is needed is learning how in the long term, to manage
employee diversity.

Managing diversity refers to a strategic organisational approach to developing workforce
diversity, to managing organisational culture change and to empowering the entire
workforce. Managing diversity represents a management approach which includes different
management practices and strategies aimed at developing and empowering a diverse
workforce. Diversity management is a paradigm for change, with people as its point of
focus.

Thomas defines diversity as a planned, systematic and comprehensive managerial process
for developing and organisational environment in which all employees, with their
similarities and differences, can contribute to the strategic and competitive advantage of
the organisation, and where no one is excluded on the basis of factors unrelated to
productivity.

Kreitner and Kinicki refer to managing diversity as changing the organisational culture and
infrastructure in order to enable people to perform at their highest potential.

Management of diversity differs from affirmative action in the following ways:

Affirmative Action Management of Diversity
Mutual adaptation
process
It is accepted that individual
employees will make the
necessary adjustments on their
own in order to adapt to the
needs of the organisation
Accepts that the manager, the
organisation and the employees
will adapt to suit the
requirements of each other.
Utilisation of
potential
Focus on recruitment, higher
mobility and retention of
previously disadvantaged persons
within a particular state or
organisational structure
Focus on full utilisation of
potential of all employees, the
problem is no longer to appoint or
recruit personnel (minorities and
disadvantaged), but the utilisation
of their potential at all levels




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Affirmative Action Management of Diversity
Evolutionary
approach
Affirmative action focuses on
lets get relief from undesirable
practices as quickly as possible,
even if through artificial means.
Management of diversity
prioritises spontaneous solutions.
Assistance to the
manager
Assumes that action is taken to
the advantage of the individual
who has been disadvantaged in
some way.
Management of diversity assists
the manager in learning to
establish the full potential of all
employees, for example to utilise
old and young people, men and
women
Organisational
matters
The driving forces behind
affirmative action are legal
requirements, moral prescriptions
or social responsibility.
Diversity management is
organisationally motivated; those
persons who utilise diversity
optimally within the organisation
enjoy a competitive advantage.

Diversity management focuses on the development and implementation of organisational
initiatives that increase the numerical representation of historically excluded groups;
empowers a diverse workforce once it is in place to participate fully in organisational
decision making; and ensures that inclusion of a diverse workforce in every aspect of
organisational life is maintained.





















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CHAPTER 2

Benefits of the paradigmatic approach

The paradigmatic approach to the development of historically disadvantaged employees is
of great importance to all involved in people development, especially when designing
affirmative action and managing diversity strategies.

It provides managers and employees with a historical overview of the development
of disadvantaged employees
The paradigmatic overview presents a holistic picture of the building blocks that
managers and human resource practitioners need to consider when planning and
implementing affirmative action and managing diversity strategies
The range of paradigms can be used as a diagnostic tool to determine where the
organisation is in terms of its paradigm about people development before embarking
on a transformation process through affirmative action and managing diversity
strategies

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PATERNALISTIC PARADIGM

Macro-environment
Development
approach
Managing of value
differences
Modernisation
focus
Development
model
Employee
participation
Social responsibility

Implemented by
Nationalist
government when
they adopted the
apartheid policy.
Black and White
people were
developed in
different
geographical areas.
Black people could
advance to
managerial
positions only in
black companies.
Separate education
systems were
introduced for
blacks and whites.
Managers followed
the deterministic
approach to
development of
black employees.
Approach based on
the belief that black
employees level of
competence was
determined by their
previous experience
and exposure to
their previous
environment.
Black employees
were regarded as
being at a cognitive
disadvantage
because of their
socially and
educationally
deprived
environments.
Western value
system was used by
managers.
Only typical
Western values like
capitalism, free
enterprise and
Western work
ethics were
deemed acceptable
by managers.
Primary assumption
was that Western
value system is
superior to African
value system.
Modernisation is
the process when a
culture adopts the
value systems and
customs of a more
developed culture.
The assumption
was made that
black employees
must develop
Western attributes,
beliefs and
behaviour. Yet
managers seem to
believe that black
employees are
incapable of
advanced
Westernisation.
Apartheid model
was applied
stringently. Black
workers could only
aspire to
managerial
positions in the
homelands, where
there were few
opportunities.
Employees of
colour were not
expected to
become involved in
decision-making.
Characterised by an
autocratic
leadership style and
one-way
communication.
Worker committees
ineffective because
management
appointed
members who were
not representative
of employees and
who were
dominated by
management.
Organisations rarely
embarked on social
responsibility
programmes.
Government
developed some infra-
structure in the
homelands viewed it
as social and moral
responsibility. Private
companies were
prohibited in investing
in black group areas
resulting in little
attention to housing
and education for
blacks.





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EQUAL OPPORTUNITY PARADIGM
Macro-
environment
Development approach
Managing of
value
differences
Modernisation
focus
Develop-
ment
model
Employee
participation
Social
responsibility

During late 70s
apartheid
legislation was
relaxed. The
Wiehan report
formalised the
principle that all
employees
should have
access to senior
positions. Should
be equal
opportunities for
blacks and whites
competing for
high-level
positions.
Black people
were responsible
for catching up
on their
educational and
development
backlog.
White and black
people were seen
as economically
interdependent.
In developing black employees, white managers
adhered to the expectancy theory and were
reluctant to support black employees financially.
Expectancy theory states that people are naturally
inclined towards self-development. The
advancement of black employees results from a
combination of what employees expect from the
future and the value that specific future rewards
hold for the employee. Valence is the attractiveness
of a more senior position and expectancy is the
belief that the promotion will be a result of
improving their qualifications, job performance and
managerial skills. Managers said it is too costly to
provide special development programmes to black
employees. Also resisted the idea of singling black
employees out for development. Subconscious level
managers were still negative about advancing black
employees. Expectancy theory did not have the
desired results in motivating black employees to
advance. Poor education, low aspiration, low
confidence and lack of support from management
contributed to failure.
Osmosis model was adopted as primary
development programme. After legal barriers
removed, black employees gradually filtered
upwards in organisations. There was an expectation
that these black managers needed to be self-driven
and should conform to Western values. Because of
this black people moved very slowly. White
managers adamant that work and production
standards should not be lowered in order to allow
more black employees in high-level positions.
Assimilation of
Western values
still deemed
important,
despite the
realisation that
it might be
difficult process.
Managers
believed that
they should not
compromise on
the Western
values. Still
expected black
employees to
conform to a
different set of
values, which
were perceived
superior.
Some managers
believed that a
small number of
black employees
had modernised
sufficiently to
occupy positions on
a more senior
management level.
Urbanisation was
now an accepted
fact. The
continuum model
for modernisation
was applied.
Equal opportunity
paradigm, there was a
movement towards
real consultation.
Participation by
workers was still very
structured and there
was little spontaneous
participation by black
people in decision
making.
Social
responsibility
toward the white
community was
still very strong,
but black people
were largely
excluded from
this.
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BLACK ADVANCEMENT PARADIGM

Macro-environment
Development
approach
Managing of value
differences
Modernisation
focus
Development
model
Employee
participation
Social responsibility

Legislation inhibiting
career advancement
of black employees
removed. Still not
sufficient progress
for black to high-level
positions.
Restrictions on
residency removed
and elementary
power sharing
formalised, but only
with Indian and
Coloured
communities. Black
people only had
expectation of
possible future
power sharing.
Manager realised
that formal
education system for
black people was
inadequate
accepted the
responsibility for
implementing
remedial and
developmental
programmes.
White managers
believed reason for
slow development of
black people was the
gap in skills between
black and white
employees. Limited
exposure to the
modern work ethic
and managerial role
models was also
regarded as a
contributory factor.
To resolve this
special bridging
education and
awareness
programmes were
initiated.
White managers
more tolerant toward
non-Western work
value systems, yet
organisations still
adhered to unitary,
modern, work value
system. White
managers still
regarded the work
values of black
employees as
unacceptable because
the black value
domination would
lead to the
destruction of the
free market and
capitalist economy.
Organisations were
primary role-players
in accelerating
modernisation among
black people who
suffered inadequacies
of black education
and deprived home
environments.
Changes in the
structural
environment were
instituted to help
black employees
develop a modern
work ethic.
Many organisations
introduced concept of
participative
management, but
failed to succeed
because of poor
implementation.
Failure can be
attributed to poorly
prepared managers
who were still too
unreceptive to new
ideas and processes.
Union representation
became accepted and
improved
participation. Sharing
of material and
financial benefits was
introduced, also
shareholding and
profit sharing for
black people. Black
employees
participated in
bursary schemes,
pension funds,
housing and other
schemes.
Managers started
realising their social
responsibility to redress
past economic and
career development
injustices. Organisations
embarked on social
responsibility projects.
Changed attitude driven
by a belief that such
projects were an
investment in the
organisations future,
whereas actually driven
by motives of guilt and
fairness.

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AFFIRMATIVE ACTION PARADIGM (ENFORCED DEVELOPMENT AND EMPOWERMENT)

In South Africa the focus has been primarily on the enforced development and occupational empowerment of black employees, although
other disadvantaged groups have not been excluded. Affirmative action has been mainly driven by black liberation movements, political
organisations and business considerations.

Objectives of affirmative action:

To rectify inequality regarding the racial structure of the workplace
To rectify inequality regarding work policies, practices and facilities
To ensure that employees are broadly representative of South Africas race groups at all levels and in all disciplines
To ensure that all work practices, policies and facilities are equitable
To ensure that the culture in organisations is conducive to affirmative action
To ensure that business spending is directed to businesses owned by disadvantaged communities

Two sub-paradigms are distinguished within the affirmative action paradigm. Bottom-up and Bottom (Top)-down are the two sub-paradigms.














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AFFIRMATIVE ACTION PARADIGM BOTTOM UP
Micro-environment
Development
approach
Managing of
value differences
Modernisation
focus
Develop-
ment
model
Employee participation Social responsibility

Was believed that
affirmative action should be
enforced from within the
organisation before enforced
through legislation.
Organisation could
implement the changes
according to own
organisational culture and
structure, which should
minimise productivity and
efficiency losses.
Breaking down of apartheid
completed; National Party
opted for power-sharing;
introduction of black
majority rule. Black
liberation movements saw
affirmative action as the
institution of a black
government and black
people occupying the
majority of senior positions.
Government introduced
mixed schooling; black
people participated in
highest social level and
represented SA
internationally in sport, arts,
culture etc. Purchased
residences and business in
white areas.

Affirmative action was
seen as strategic business
issue no choice of
implementation.
Social and economic
pressures could be turned
into a long-term
competitive advantage
Legislation might be
introduced enforcing top-
down affirmative action.
More cost-effective to fill
manpower pipeline with
qualified minorities from
previously disadvantaged
groups.
Process driven by senior
management. Policies
adopted, including
comprehensive equal
opportunity policies,
input-based policies,
short-term preferential
policies, short-term
output-based policies
Senior management
accepted some of
Afrocentric values as
long as no negative
impact on
organisational
objectives and
productivity. Lower
work standards
accepted temporarily
to reach personnel
quotas. Preference
still given to black
employees who
acquired modern
work ethic.
Westernisation played
a definite secondary
role employees only
had to adhere to
modern work values
and behaviour. Socio-
psychological model of
modernisation was
adapted personal
attributes were seen as
codetermining the
modernisation progress
of employees.
Employees self-
motivated to
participate in value
changes.
Escalator model of
development was
adopted this set
specific quotas for
senior management
positions.
Policy of full participation in
decision-making, profit-sharing
and greater transparency and
openness was seen in most
organisations. Participation of
senior level management was
seen as a priority. Previously
disadvantages employees were
empowered to participate in
operation of businesses. Black
employees contributed to
strategic direction of
companies. Employees and
management communicated.
Through affirmative action
employees tested the limits of
their decision-making powers.
Social investment
programmes were a priority
it acted as a vehicle for
empowering the previous
disadvantages to participate
fully in the economy and in
organisation activities.
Organisations budgeted
substantial amounts for
social investment
programmes. Education,
housing and medical
benefits were still the main
focus areas of these
programmes.


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TOP-DOWN AFFIRMATIVE ACTION PARADIGM
Macro-environment
Development
approach
Managing of value
differences
Modernisation
focus
Developme
nt model
Employee
participation
Social
responsibility

Mind-set emerged when black
majority ANC came to power.
Affirmative action enforced by
legislation. Quotas and time-
limits set by government and
ensured through some form of
financial reward. Government
striving towards non-racial
society all equal after pas
justices are rectified. Reversed
discrimination against formerly
privileged whites is seen as
justifiable discrimination.
Positional empowerment
believed to be first step
toward overall
development of black
employees. Black
employees appointed in
spite of lack of experience
and confidence.
Developmental policies that
apply bottom-up paradigm
also apply to top-down
affirmative action
paradigm. In top-down
paradigm output-based
policies carrier more
weight.
Development approach is
based on expectancy
theory, as it is believed that
black people will develop
their skill in the positions to
which they are appointed.
Difficult to predict how value
differences will be handled.
Expected that black people in
senior positions will promote
Ubuntu and other humanness
values and will thus change
organisational cultures to
become more people-
orientated. Africanisation
will probably take place to a
greater extent. Still some
fear that Africanisation will
destroy modern work ethic,
yet economic realities will
inhibit SA organisations from
fully adapting unitary
Africanisation policies and
valuing regression.
The socio-psychological
model for
modernisation applies.
Accelerated
modernisation will
happen as result of
more black people
being appointed in
senior positions. The
displacement model
becomes relevant as
white people will have
to be displaced to make
positions available for
black people.
Productivity losses are
predicted as a result of
displacement
procedures such as
early retirement and
retrenchment.



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Differences between top-down and bottom-up affirmative action

Top-down affirmative action Bottom-up affirmative action
Enforced by legislation Enforcement by consent
Power primarily obtained through positional
advancement
Power primarily obtained through personal
growth and work skills development
Productivity and work standards often not
considered in the empowerment of the
disadvantaged
Productivity and work standards usually
considered in the empowerment of the
disadvantaged
Government-driven Senior management / organisation driven
Positional empowerment more important than
work skills empowerment
Work skills empowerment and personality
growth as important as positional
empowerment
Reactive intervention Proactive intervention
Output policies slightly favoured over input-
policies
Both input and output policies equally important

Barriers to affirmative action:

1. There is no commitment to or support for the process on the part of top management.
2. There is covert and overt sabotage of the process by middle management.
3. The objectives and success criteria of the affirmative action process are not established and
clearly communicated to all.
4. The process is not part of the companys strategic plan, or is not regarded as a strategic issue.
5. Managers are not measured or rewarded for their performance in the affirmative action
process.
6. There are no succession plans or individual career plans.
7. There are no racial targets that is, targets for the employment of black people based on human
resource planning systems.
8. The recruitment criteria used are not adapted to the selection of black people tests are
therefore mostly unsuitable.
9. There are no clear job objectives, which leads to a situation of tokenism.
10. Open and honest feedback on performance is not given. Because of the limited number of
suitably qualified black people currently available for senior positions, the risk of losing such
employees and the fear of appearing racist often prevents employers from providing black
employees with balanced feedback on performance. This, in turn, denies these employees the
opportunity for growth and development.
11. The affirmative action process does not have measurable results.
12. Not enough attention is given to the support mechanisms for mentors, coaches and others
involved in driving the affirmative action process.
13. The issue of managing and valuing diversity is not entrenched trough orientation and cross-
cultural communication programmes and the organisational climate do not encourage these
values.
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14. The emphasis is placed on short-term numbers not on long-term development.
15. The process is incorrectly managed as black upliftment and not black empowerment which
reinforces the myth of white superiority and black inferiority. This resulting in the rejection of
the process by all rational employees.

MANAGING DIVERSITY PARADIGM

Reasons for managing diversity:

Broaden focus of affirmative action:
A need to broaden the focus of affirmative action to include dimensions other than race and
gender, as well as going beyond narrow descriptions of enforced vocational advancement of
disadvantaged employees to include broader dimensions such as extended employee participation,
economic empowerment, social investment, education and the general welfare of the
disadvantaged. This also includes the need to create a corporate environment that would be
inclusive of the different groups.

Acceptance of differences:
Another reason for managing diversity is the acceptance of the unique characteristics of employees
from different cultures. In order to build trust and tolerance, among the diverse employees and
sensitivity to the specific needs of employees from other culture groups.

The need to manage emotional change:
The need to accommodate and manage the psychological processing of deep emotional changes
that result from transformation brought about by affirmative action. The management of diversity
paradigm provides a suitable climate for working through expectations, uncertainty, fears, hatred,
rage, conflict and other manifestations of a society in transformation.

Comprehensive management approach:
The need for a comprehensive management approach, through which managers from any cultural
group are assisted to manage, develop en empower employees from other cultural groups
successfully.




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MANAGING DIVERSITY PARADIGM
Macro-environment
Development
approach
Managing of value
differences
Modernisation
focus
Develop-
ment
model
Employee
participation
Social
responsibility

Emerged when ANC came to
power. Characteristics include:
Economic success depends on
sustaining democracy and
uniting diverse ethnic groups;
Pursuit of a non-racial society
through a Bill of Rights and the
recognition of eleven official
languages; preferential
treatment for marginalised
black people; preservation of
the free-market system and
capitalism; introduction of
adjustments to accommodate
the values of black people;
financial support for small
businesses and some action by
government to ensure
redistribution of land and
wealth; removal of all artificial
barriers upholding any form of
segregation.
Individual development
only successful if
organisational culture is
created that supports
individual development
unconditionally. Managers
will support development
programmes if they
perceive them as capable of
improving the outputs or
profits of organisation.
Holistic approach is
followed in which the
development of employees,
organisation and social
environment is seen as an
integrated whole and
development programmes
are beneficial to the whole
organisation. Vocational
education is emphasised.
Both deterministic and
expectancy theories are
applied to teach basic
cognitive skills.
Development of
marginalised employees
can take place only if this is
supported by upliftment
programmes in
communities.
Organisation has become a
partner of the government
in job creation, education
housing, health and other
schemes.
Culture of value tolerance
among different culture
groups is promoted.
Assimilation is replaced by
intergroup accommodation
of values. New synergistic
organisational culture is
developed with different
value systems contributing to
new culture. Based on
shared values contributing to
improved productivity.
Black and white
employees have to
accommodate one
anothers values.
Values like Ubuntu
enhance the economic
competitiveness in
organisations.
Modernisation is
defined as the
voluntary integration of
mutually agreed-on
Eurocentric and
Afrocentric values into
a new organisation.
Seen as long-term
process in which
neither African nor
European values will
ever totally disappear.
Full employee
participation and
democracy is established
as basic right.
Participation is to
enhance commitment.
Tolerant organisational
culture is promoted.
Social investment is
extended to social
involvement.
Organisations are
morally and
financially involved in
assisting previously
deprived
communities. Closely
linked to RDP
(Reconstruction and
Development
Programme).

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CHAPTER 3

ECONOMIC FACTORS NECESSITATING DIVERSITY

Globalisation

Many South African companies opened new branches in other countries. They are thus competing
in the global market. International companies are also investing in South Africa. Global competition
requires that the organisation tap the full potential of all its human assets. A diverse workforce is
one way in which organisations are trying to align their global marketing strategies. Organisations
incorporate individuals from other countries in the workforce to benefit from their expertise, rather
than deploying their South African employees.

Global success is being able to conduct business in different countries with diverse values or styles,
and this seems the most possible with a heterogeneous work team.

Managers must develop a new awareness in handling the unique challenges of global diversity an
awareness that rises above cultural standing, and which enables them to build new networks and
understands geopolitical forces.

Globalisation of organisations has led to the need for a multicultural perspective so as to compete
successfully abroad. In order to understand, attract and respond properly to a diverse customer
base, businesses need to make their own workforce more diverse.

International competition

South African companies are faced with the challenge of competing internationally because they
have invested internationally. When companies embark on international business venture, they
usually grow and develop. These companies should employ people from the global workforce.
Business values influences organisational practices and decisions and values in Western countries
are different to those from Eastern countries. To develop and sustain competitive strength,
companies should employ people with a detailed knowledge of multicultural values. Cultural
differences interfere with the efforts of multinational managers to understand and communicate
with those in other countries.

Successful operation abroad demands effective cultural adaptation of products, business practices,
institutional arrangements, employment policies and personal attitudes. One of the important
features that vary from country to country is their attitude towards time.


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When an organisation has a diverse workforce, it is able to compete more effectively internationally
because of the multicultural make-up of its workforce.

Eastern Countries Western Countries
Value collectively and groups
Value family and respect for authority
Value cooperation and harmony
Value humility and austerity
Value individuality
Value individuals and youth
Value competition, conflict, confrontation and
differences
Value immediacy and short-term results
Value self-promotion and material wealth

SOCIAL FACTORS NECESSITATING DIVERSITY

Demographic changes

Demographic changes in the workplace take place because females, minorities, people of different
ethnic backgrounds, aging workers, people with alternative lifestyles and foreign-born people are
joining the workforce. These changing demographics of the workplace are also changing the
demographics of the marketplace.

How well organisations deal with this demographic shift, will directly affect their business in future.
Markets are becoming more segmented and more organisations are trying to find niches where
they will have some competitive edge. Market issues make some organisations want to have an
employee group that reflects the marketplace to a reasonable degree. The payoff is the ability to
better understand and respond to customer needs.

The major social and economic changes in South Africa have been the increase in womens
employment, especially mothers. Although womens labour market participation has increased
rapidly and dramatically women tend to be concentrated in certain occupations and industries.
They face horizontal and vertical segregation. Women work in more caring and nurturing
industries, while men dominate management positions. This suggests that the increased
participation by women has not led to increased equality for women in the labour market. The
changing composition of the workforce is due to demographic changes of employees entering the
workforce in terms of gender, age, marital status, physical ability, religious belief and so forth.

America is also facing demographic changes. This has led to a widespread interest in managing
diversity. Workforce 2000 data is considered a good source of information about the changing
complexion of the American labour force.




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Democratic society

Pressure on organisations to diversify started before the new South Africa. Societal values are also
contributing to the enhancement of diversity in organisations. People have equal rights even
though they are different. The political transformation in 1994 meant new political structures for
the country as well as the transformation of our social institutions. South African organisations are
also expected to be part of the African Renaissance, which entails enlightening people on the
African continent so that they can be pioneer, even in business.

LEGAL FACTORS NECESSITATING DIVERSITY

Employment equity act

The Employment Equity Act is aimed at providing equal opportunities in the workplace, irrespective
of race, gender, ethnicity, age, national origin, religion and disability. The act has a dual purpose
on the one hand it is aimed at promoting equal opportunities and fair treatment in employment
through the elimination of unfair discrimination and on the other hand it requires employers to
establish representative workforce targets and basically implement an affirmative action policy.

The Act provides for diversity in organisations, especially in supervisory, middle and senior
management positions, because its underlying intention is to provide all racial groups and
individuals with equal opportunities and because it requires some form of affirmative action policy
on the part of organisations.

The basic principle in implementing the Employment Equity Act is to ensure that the number and
proportion of persons from the designated groups in the employers workforce is representative of
the broader labour market.

The Department of Labour established the Commission for Employment Equity to fulfil the following
functions:

To advise the minister on codes of good practice, regulations, policy and other matters
concerning the Act.
To make awards recognising the achievements of employers in furthering the purposes of the
Act.
To conduct research and report to the minister on any matter relating to the application of the
Act.





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Annual reports submitted to the Minister outlines the following key strategic objectives:

Implementing strategies to increase procedural compliance with the Act by employers.
Develop and implement systems to assess and enforce substantive compliance with the Act by
employers.
Simplify the employment equity regulations.
Encourage online reporting systems to improve data collection and to ensure accurate and fully
completed records.
Promote constituency activism to strengthen the enforcement of the Act, including creating a
conducive environment for whistle blowing.
Enhance the organisational culture of stakeholders by promoting diversity management in the
workplace and by conducting anti-racism campaigns.
Adopt specific strategies to increase the representation of women and people with disabilities in
employment.
Create mechanisms to interface education and training with employment equity.
Assess the impact of immigration on employment equity and adopt appropriate responses.
Develop and implement communication strategies to promote employment equity.
Ensure alignment of other relevant legislation or policies with the Employment Equity Act to
strengthen its implementation.

Labour Relations Act

The purpose of the act is to advance economic development, social justice, labour peace and the
democratisation of the workplace. It is also aimed at reducing discrimination against current and
future employees of the organisation. Organisation will end up with a diverse workforce because
employees and potential employees are being protected in the organisation by law.
Just as employees have the right to freedom of association, so the rights of organisations and trade
unions are also protected. Organisations have a diverse group of trade unions representing
different employees in the organisation.

Skills Development Act

Two of the purposes of the skills development act include:

To encourage employers to employ persons who find it difficult to be employed.
To improve the employment prospects of persons previously disadvantages by unfair
discrimination and to redress those disadvantages through training and education.

To accelerate the implementation of the Act the Department of Labour developed the National
Skills Development Strategy (NSDS). This spells out the national priority areas to which the project
income will be allocated for the next five year. It also aggregates performance indicators through
legally binding service level agreements and projects funded under the National Skills Fund. The
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mission of the NSDS is to contribute toward sustainable development, economic growth,
development and equity of skills development institutions by aligning their resources with the skills
needs for effective delivery and implementation.

The following are principles of the NSDS 2005-2010:

Support economic growth for employment creation and poverty eradication.
Promote productive citizenship for all by aligning skills development with national economic
growth and development.
Accelerate broad-based economic empowerment and employment equity.
Support, monitor and valuate the delivery and quality assurance systems necessary for the
implementation of the NSDS.
Advance the culture of excellence in skills development and lifelong learning.




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CHAPTER 4

BUSINESS REASONS / BENEFITS OF MANAGING DIVERSITY

Creating a culture which values differences between people requires major, systematic, planned
change efforts. These plans are not typically part of affirmative action programmes, because
affirmative action is based on legal compliance. Diversity management is a new organisational
paradigm for managing organisational change it moves beyond a human resource model based on
legal compliance to a model that suggests there is value in diversity. The benefits of implementing
this model range from concrete measurable savings to more intangible like increased morale.

With managing diversity in an organisation, the organisation is able to bring out the best in each
employee, creating a productive workforce. Effectively managed diversity can also create a
competitive advantage in the areas of cost, resource acquisition, marketing, creativity, problem
solving and organisational flexibility. Managing diversity could lead to higher productivity which in
turn would lead to higher profit.

1. Ethical considerations

Diversity issues have ethical considerations as their basis. Business decisions are based on
individual, professional, organisational and societal values. The following ethical principles are
proposed as being relevant to managing diversity:

Managing diversity is based on the popular golden rule that if you want to be treated
fairly; treat others fairly.
The managing diversity paradigm emphasises disclosure of information, open
communication and transparency.
It is ethical to assume that peoples dignity is based on their ability to freely choose what
they will do with their lives, and they have a fundamental moral right to have these
choices respected. Diversity management allows all people to reach their fullest
potential by choosing career paths according to their interests and abilities.

If these ethical principles are removed, diversity management initiatives will collapse. These
principles are part of good people management. However, management needs proof that these
theories will not affect the bottom line negatively.






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2. Organisational benefits.

The following arguments for managing diversity to achieve competitive advantage are
mentioned:

Cost: Reducing turnover and absenteeism
Resource acquisition: Attracting the best personnel as the labour pool shrinks and
changes
Marketing: Bringing insight and cultural sensitivity to the marketing effort
Creativity: Increasing creativity and innovation
Problem solving: Bringing a wide range of perspectives and more thorough critical
analysis
System flexibility: Reacting to environmental changes faster and at less cost

The following benefits are outlines of managing diversity based on an exploration of numerous
studies undertaken in this regard:

Low labour, recruitment, turnover and training costs
Attracting and retaining employees
Improved understanding of customer needs
New product development
Improved employee relations
Enhanced public image
Greater creativity
Increased capacity among managers to establish and maintain inter-organisational
relationships
Lower frustration levels among supervisors, leading to reduced friction and less
unwanted disciplinary action













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The business reasons for, or benefits of, managing diversity can be grouped into either external or
internal reasons. Internal reasons are those found within the organisation and external reasons are
those from outside the organisation.

External reasons or benefits Internal reasons or benefits
Competition
Economic downturn/upturn
Demographic changes
Emerging markets
Image
Investor/donor satisfaction
Government regulation
Political correctness
Production
Profitability
Lawsuits
Growth and expansion goals
Organisational mission and values
Organisational climate
Employer/customer satisfaction
Employee/management development
Continuous improvement
Progressive thinking
Profitability
Performance
Complaints

3. Discussion: Benefits of managing diversity

3.1 Access to talent, attracting and retaining talent

Fundamental argument for managing diversity is the benefit derived from recruiting,
retaining and promoting the best people, regardless of their individual characteristics.

The changing demographic profile of the workforce has been a major impetus for
organisations to ensure that they have access to the best of all available talent. Managing
diversity assists organisations to retain employees from outside the traditional pool talent.
When organisations manage diversity, they are able to attract all the talented employees
they can find and recruit the best.

Managing diversity is seen as the provision of opportunities for all employees to express
their individuality and cultural identity. Talent is retained in the organisation through
managing diversity because such a strategy creates a work setting geared to the upward
mobility of all kinds of people. The benefits of diversity which are thus realised entail not
only attracting the best from a wide range of groups, but also optimising the potential of
these recruits at each level in the organisation.

3.2 Increased organisational flexibility

One way in which a diversity-oriented organisation can ensure the retention of employees is
through enhanced flexibility. As organisations become more diverse, there is more pressure
to respond by being more flexible in all their processes, systems and procedures, and not
only working hours.
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It is imperative that the terms and conditions of employment offered by organisations be
responsive to individual needs. If not, organisations run the risk of failing to meet the
human resources demands of the 1990s. Ross and Schneider put it: If there is not
sufficient flexibility within an organisation, the best will go elsewhere.

More can be achieved for the organisation by adopting a more strategic approach to
organisational flexibility. The benefits can be achieved by following this approach include,
higher levels of psychological engagement, increased work performance and, ultimately a
more responsive, adaptable environment.

3.3 Lowered turnover and absenteeism

There is an assumption that organisations that manage their diversity effectively can
improve their retention rates for different groups of people, thus reducing turnover and
absenteeism costs. The introduction of flexible working practices has also provided
evidence of benefits to be gained from managing diversity, especially in terms of reduced
turnover and absenteeism. In respect of women, improved retention rates were noticed by
offering flexibility in work hours and practices; absenteeism has reduced by the provision of
child day care and introduction of flexi time.

3.4 Improved team effectiveness

One of the strongest reasons for adopting diversity is that it brings a richer variety of ideas
into an organisation and enhances creativity in the organisation. It will lead to improved
creativity, innovation, problem-solving and decision making within organisations. There will
be a heterogeneous team instead of a homogeneous team. A diverse team has better
quality solutions on brainstorming tasks and display more cooperative behaviour.
Heterogeneous teams are believed to create solutions to work and business problems that
are more innovative and effective and evidence to support this is based on research findings.

The findings that heterogeneous team are more effective:

Are more successful, but homogeneous teams are also successful when they consist
of stable extroverts who enjoy working in teams and whose roles may be
undifferentiated, and when they consist of many talented people
Show increased innovation
Are better at solving problems and overcoming obstacles
Are more creative
Have better quality solutions to assigned problems

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It does not appear possible to assert on the basis of the research findings that diversity will,
in itself, lead to improved team performance. The effectiveness of a team depends on a
wide range of factors, not just on whether its membership is heterogeneous.

The following also have an impact on team effectiveness:

- The nature of the task
- The ability of team members
- The personality traits of team members
- The length of time the group stays together
- The urgency of the task
- The organisational roles of the team members
- The team leader

In managing diversity the challenge is to get the best and not the worst out of a teams
differences. This will lead to ways of improving individual, interpersonal and organisational
effectiveness. Managing diversity involves respecting employees and empowering them to
participate in decision-making, training them to use a variety of tools to solve workplace
issues, and training them how to work together effectively in teams.

3.5 Increased quality

Management of diversity is thought to translate into successful total quality management
(TQM). The argument is based on the rationale that TQM not only requires an organisations
systems and regulations to be reviewed and improved, but al so that this approach be
supported and implemented by all its employees. If organisations fail to manage diversity,
there will be discrimination, lack of support for employees and a lack of opportunities for
career progression which in turn will reduce the quality of service and demotivate
employees.

3.6 Improved customer service

Managing diversity is thought to enable an organisation to get closer to its customers and
thus improve customer service. This contention is based on the premise that the workforce
becomes more representative of the customer base that the organisation serves. It is also
based on the principle of effective communication being crucial to business success.
Organisations that understand their markets obviously have a competitive advantage over
those that do not.




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3.7 Productivity

Despite the fact that there are no solid research findings to show a definite link between
managing diversity and bottom-line productivity, increased productivity seems to be an
indirect benefit of managing diversity. Things like increased team effectiveness, talent
retention and better communication it can be assumed that productivity will increase.
Achieving business success is possible through managing diversity and hiring the best diverse
workforce available. Workforce diversity is a reality and its aim is to improve productivity in
organisations rather than to comply with legal requirements, meet moral responsibilities or
respond to internal and external group pressures.

3.8 Competitiveness

It is imperative that organisations rethink their approach to diversity because of global and
domestic competitive realities. Few organisations have escaped the pressures of worldwide
competition, globalisation and a marketplace which is already diverse and will become more
so in the future. To survive, organisations should become more flexible and adaptable as
regard to environmental changes, and they should adapt to different communities and
customer bases.

An organisation that effectively manages its diverse workforce is able to compete effectively
in the diverse marketplace because it has a better and more flexible understanding of its
diverse customers.

A customer-driven organisation is possible only when diversity-based management systems
are in place that values every person for what they can contribute to the organisations
vision. Through diversity management the workforce will be representative of the
community that is served by the organisation.

4. Evidence to support the business argument for managing diversity

There seems to be a lack of research-based evidence proving the legitimacy of the benefits
claimed. This does not mean that it is misleading or inaccurate. Below are the most frequently
cited benefits that have examined the available evidence in support of the perceived benefits. It
is broken down into three categories; proven, debatable and indirect.

The proven benefits of diversity are those that are an inevitable consequence of becoming a
diversity-oriented employer. They include:

Recruiting from a wider range of talented candidates
Retaining this talent
The associated savings from lower staff turnover and absenteeism
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The debatable benefits are those thought to result from having a mix of people with a wide
range of styles, backgrounds, personalities in the workforce. The majority of these benefits are
indicated by research into teams, which essentially shows that heterogeneous or diverse teams
outperform homogeneous teams. Another two debatable benefits that do not rely on such
research include:

Increased quality
Improved customer orientation and service..

The indirect benefits are those believed to result when the direct and debatable benefits have
been achieved. They are thought to be a logical consequence of having an organisation in which
the best possible candidates are selected, developed and retained and in which quality of
service and output are maximised.

The indirect benefits are based on a rational argument that can be represented in the form of a
flow chart. Many of the indirect benefits could easily be those expected to result from any
organisational change initiative. It is therefore difficult to find solid evidence. Because of this
problem of causality the indirect benefits are tenuous and the links may never be firmly
established.

PROVEN BENEFITS DEBATABLE BENFITS
The organisation employs the best possible
candidates from across the board.
The organisational culture is one in which the
potential of all employees is realised.
Flexible working arrangements are offered.
Employees are valued, motivated, developed
and encouraged to progress upwards through
the organisation.
Employees will be reluctant to leave.
Employees will give their best.
Employees are more in tune with their customer
base.
There is enhanced innovation, creativity and
problem solving.
Customer service is better.
There is improved quality.
N v
+
INDIRECT BENEFITS
The organisation has a better
public image.
The work environment is
satisfying.
There are improved relations
among staff.
Job satisfaction and moral will
increase.
There is increased productivity.
The organisation has a
competitive edge.


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CHAPTER 5

USING A SYSTEMS APPROACH TO MANAGE DIVERSITY

Managing diversity is more than merely valuing the differences among people. It is not primarily a
human relations issue, but a strategic business issue incorporating an approach with a variety of
strategically aligned practices and interventions. Acceptance, mutual tolerance and respect among
different people are important, but not sufficient in creating an empowered workforce. Managing
diversity initiatives implies practices and interventions at all organisational levels to ensure
systematic, holistic and strategically aligned organisational change. Managing change forms and
integral part of managing diversity. Figure 5.1 shows a systems model to understanding diversity
dynamics.

For this model, various aspects become clear:

The organisations diversity climate is collectively defined by individual group and organisational
level diversity factors.
Managing diversity involves an awareness and understanding of diversity factors, on all levels,
which may act as barriers to working effectively with differences in the organisation.
Managing diversity should involve transformation interventions at an individual, interpersonal
and organisational level.


Individual Interpersonal Organisational
Self-awareness broadening
the diversity focus
Shared and unshared values
Racism, sexism, prejudice
and guilt
Paradigm shift to viewing
and managing diversity as an
asset
Responsibility for self-
development and
empowerment
Skills development
Accountability and individual
ownership
Career progression
Accepting, respecting and
valuing diversity
Language and
communication training
Stereotyping
Cultural assumptions
Subtle and overt career
sabotage
Communicating the
underwritten rules
Dynamics of communicating
across diversity
Managing resistance, conflict
and expectations
Development of trust and
respect
Support systems, eg.
mentoring systems
Innovation through diversity
interaction
Facilitating communication
across levels
Implication of changes in
demographics and the socio-
political environment
Diversity of the organisation
and the marketplace
Beyond a culture of one size
fits all
Individualising not
standardising policies,
systems and practices (eg.
Recruitment and selection,
career development,
performance management)
Role of leadership and
change agents
Organisational development
and the learning organisation
Membership of club
Glass ceiling



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Managing diversity at an individual level

Perceptions: How people differ in their interpretation of the world

People interpret what they hear and see in the world as they perceive it and not really as it is. This
relates to the fundamental question about truth and reality. Many studies have shown the
important impact of perception on behaviour. Results have shown that employees who perceive
their jobs as challenging and interesting display higher job satisfaction and motivation leading to
better job performance. Perception generally relates to how people interpret their world of
experience as well as how they act upon their perceptions. There are many barriers to the
accurate perception of other people and their behaviour, such as selective attention, denial, the
halo effect, stereotyping and projection. These are based on the unique characteristics of the
individual, such as values, beliefs, norms and attitudes.

The perceptual filter of an individual, which consists of that individuals unique values, norms and
beliefs that actually determine their perceptions and which constructs his or her experiential reality.
People tend to perceive according to what they believe is right or wrong, acceptable or not
acceptable, as well as to what they value as important or not. People judge subjectively.
Perceptions are distorted daily by mental processes such as stereotyping, projection, the halo effect
etc.

Stereotyping:
Your group identity is a personal affiliation with a group with which you share certain common
social or cultural characteristics. On the one hand, you develop a self-identity based on your
affiliation with various groups, that is, your perception of yourself is formed to an extent by
identifying with various groups of people in your life. On the other hand, people also ascribe group
identities to other people, for example people may see you as someone belonging to a particular
religious group. Stereotyping may then occur when someones judgement of another person is
based on that persons affiliation to a particular group. Group identities have certain commonalities
that relate to primary and secondary diversity dimensions. These then become the basis for
commonly held stereotypes. Avoidance of stereotyping is of particular importance in managing
diversity, as stereotyping can result in incorrect judgements based on peoples attributes that align
them with a particular group of people, be it on the grounds of race, gender, occupation etc.

It is necessary to be aware of peoples differences, which are inevitably associated with various
group identities. This does not mean that we are perpetuating stereotypes, but that we are
becoming aware of the effect of differences across and within various social and cultural groups.
There is a difference between stereotyping and valuing differences:





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STEREOTYPING MANAGING DIVERSITY ATTENTION TO CULTURAL
DIFFERENCES
Frequently based on false assumptions and anecdotal
evidence, or even on impressions without any direct
experience of a group
Based on cultural differences that have been verified by
empirical research on actual intergroup differences
Ascribes traits to members of a group Views cultural differences as positive or neutral
Involves the assumption that characteristics thought to be
common in a cultural group apply to every member
Based on the concept of greater probability
Ex: Suzuko is a Zulu princess, therefore she is regarded as
aggressive by white male standards
Ex: As a group, Zulu women tend to be less aggressive
than white males

The attribution theory provides another explanation for distorted perception. Attribution theory
describes the process by which people ascribe causes to the behaviour they perceive. A major
finding of attribution theory is that people tend to give relatively little weight to the circumstances
when they judge other people. People are more likely to attribute a persons actions or results to
personal characteristics such as appearance than to circumstantial forces. A manager who
pressurises employees to deliver a particular output in time is thus more likely to be perceived as
impatient and autocratic rather than as caught up in a serious deadline. Another finding of
attribution theory is that people tend to attribute their achievements to their good inner qualities
and their failures to adverse factors in their environment. A manager will be more likely to attribute
record production to his own good leadership qualities and poor production to the lack of resources
in the environment.

The mental process of perception and how it influences the way in which people behave may be
summarised as follows:

People perceive other people and situations based on what they value and what they believe is
right and acceptable.
Then they make certain assumptions and judgements about the person or situation and respond
accordingly.
Values, beliefs and norms form the lenses through which we perceive and filter our experiences,
and our responses usually tend to confirm what we believe and value.

Furthermore, values, beliefs and norms tend to be subconscious and automatic, whereas our
actions and judgements are more conscious. The stereotypes that we hold are therefore also
deeply rooted in what we value and believe as opposed to what others value and believe.

Resistance to change

A person is inclined to resist change because it is not easy for people to change their values, beliefs
and attitudes. These are so deeply rooted and subconsciously maintained that a persons natural
reaction is to resist a situation or action that potentially opposes or confronts their value/belief
system. It is an emotional, and subsequently behavioural, response to real or imagined threats to
an established or accepted way of doing things. Resistance to change hinders adaptation and
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progress and serves as a strong catalyst for interpersonal conflict. Resistance to change will have an
adverse impact on diversity management.

The following list is the sources of resistance to change at an individual level:

When attending a course over a period of time, people tend to choose the same chair to sit
in. Because of the variety of decisions and choices that we make every day, some structure
and order is achieved through habit. When confronted with change, this tendency to
respond in our accustomed ways becomes a source of resistance.
Any kind of change is loaded with uncertainty and ambiguity in terms of what the standards
and expectations for behaviour are. Familiar situations are replaced by this uncertainty and
people fear the implications of the new situation, as they can only make assumptions as to
what it entails. These assumptions are based on beliefs they have acquired through
previous experiences or actions.
Fear of failure goes hand in hand with fear of the unknown. People do not know whether
they will succeed or be regarded as successful in their new situation.
People with a high need for security and job status are likely to resist change because it
threatens their feelings of safety. People might also be concerned that changes will
decrease their salary and material wealth. Changes in job tasks or established work arouse
fears because people are concerned that they wont be able to perform the new tasks or
routines to their previous standards.

Research on perceptual barriers to occupational advancement and development of previously
disadvantaged groups

A lot of research has been done with regards to the attitudes of people towards black occupational
advancement strategies such as affirmative action. Research shows a positive attitude among
whites with regard to the principles that underlie affirmative action, equal employment opportunity
and the development of black employees, but there is a negative perception and negative
expectation with regard to their level of competence.

Stereotypes and biased assumptions regarding previously disadvantaged groups in South Africa are
maintained despite radical changes in the demographic profile of the management corps in the
country.

Research done on managerial attitudes confirms the principles that underlie the basic theory about
perceptions, namely that people have a particular frame of reference or paradigm, based on their
underlying beliefs, values, from which they perceive the potential competence of other people.
Some have recently started to refer to this as a persons developmental paradigm, which
determines how a person regards the development of people from previously disadvantaged
groups.
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Managing diversity at a group level

People are socially inclined. Groups share common beliefs, norms and expectations. A group is
commonly defined as two or more people who interact, share common beliefs, norms and
expectations and work toward the attainment of a mutually important goal.

The dynamics of group norms and values

Groups go through a maturation process. They grow and develop through different stages to
develop, maintain and enhance the purpose of existence of the particular group. As the group go
through the maturation process, they learn to share more and the way they perceive things. The
formation of group norms during the group development process is important to determine the
extent of group cohesiveness. The individual becomes part of the group through enforcement of
role expectations and norms. Norms develop in a variety of ways, ranging from subtle suggestions
to direct communication and from informal to more formal interaction means such as procedures
and policies. Norms evolve as a result of a persons natural tendency to forms groups and affiliate
and associate with other people sharing some common interests, purposes, needs, values and
expectations.

Values refer to peoples beliefs about how things are and how they should be. Values incorporate
that which a person deems valuable they represent their needs, preferences and moral ideals.
Values are thus not ideal states or choices of an individual, but rather the preferences that a person
holds both consciously and subconsciously. Values underlie the formation of perceptions, beliefs
and norms, which ultimately direct behaviour. When people form groups, they eventually come to
share a specific set of values, which determine how they view other people who are not part of
their group and which also determine their behaviour towards other people.

Group formation relates to the development of subcultures within an organisation. People who
share specific sets of values, beliefs and norms may also form a subculture within an organisation.
This may be in direct conflict with enhancing diversity in the work group as well as in the
organisation as a whole, especially if the subcultures lead to stereotyping, bias and exclusion of
other people.

Other interpersonal barriers

For obvious reasons related to misunderstanding between people, language can act as a barrier to
working effectively across differences within a group. Nonverbal language has been shown to be
culturally developed. Body stance, body smell, gestures, facial expressions, eye contact and the
loudness of voice are all aspects that differ in terms of their acceptability in different cultures and
may act as potential barriers to cooperation and productivity in a work group.

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Stress acts as a barrier to interpersonal communication because people exercise less self-control
when they are under stress and they regress into deeply seated stereotypes. When a person is
stressed, they tend to think irrationally and to make assumptions based on previously adopted
stereotypes.

Managing diversity at an organisational level

One reason why managers find it difficult to manage and change their organisational culture is
because organisational culture is an abstract concept, the underlying dynamics of which manifest
primarily at a subconscious level. Organisational culture refers to the way we do things around
here.

Organisational culture

Organisational culture refers to the pattern of shared meaning, values, beliefs and norms about
work-related behaviour that distinguishes that organisation form another. Shared meaning is that
which the organisation values.

Schein defines organisational culture as:

Organisational culture is the pattern of basic assumptions that a given group has invented,
discovered or developed in learning to cope with its problems of external adaptation and
internal integrations, and that have worked well enough to be considered valid and
therefore be taught to new members as the correct way to perceive, think and feel in
relation to these problems.

From the definition is it clear that organisational culture has three important characteristics.

1. Organisational culture influences the behaviour of employees at work, including how they
react and respond to other employees in or outside the organisation.
2. The shared values and beliefs that underlie and organisations culture have an enormous
impact on the organisations ability to adapt to change. Culture therefore also plays an
important role in organisational resistance to change.
3. Culture represents the normative behavioural patterns adopted by employees, that is, what
they deem acceptable or not, what they regard as effective and above-average performance
and what type of leadership styles they regard as appropriate and what not.

Culture performs a number of functions within an organisation.

1. It has a boundary-defining role it creates distinctions between one organisation and
others.
2. It conveys a sense of identity for organisation members.
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3. Culture facilitates the generation of commitment to something larger than ones individual
self-interest.
4. It enhances social system stability; culture is the social glue that helps hold the organisation
together by providing appropriate standards for what employees should say and do.
5. Culture serves as a sense-making and control mechanism that guides and shapes the
attitudes and behaviour of employees.

Culture defines the rules of the game. Culture is a barrier to change when the shared values are not
in agreement with those that will further the organisations effectiveness. When an environment is
undergoing rapid change, an organisations entrenched culture may no longer be appropriate.
Consistency of behaviour is an asset to an organisation when it faces a stable environment, but may
burden the organisation and make it difficult to respond to changes in the environment.

Culture can also be a barrier to diversity. Hiring new employees of different race, gender, disability
are not like the majority of the organisations members create a paradox: management wants new
employees to accept the organisation core cultural values. But organisations also seek out and hire
diverse individuals because of the alternative strengths these people bring. Diverse behaviours and
strength can also be a liability when they eliminate those unique strengths that people of different
backgrounds bring to an organisation. Strong culture can also be a liability when they support
institutional bias or become insensitive to people who are different. In order to change employee
behaviour, a change in the corporate philosophy and subsequent corporate practices is needed.

Organisational policies, practices and systems

Organisational policies, practices and systems set the context for employee relations within the
organisation. It is also invariably associated with the organisational culture and become the visible
evidence of the organisations underlying culture. When organisational policies, practices and
systems support or communicate disrespectful, rigid, unequal or inequitable managing of
employees, these become another barrier to managing diversity effectively. Unequal opportunities
in terms of selection, promotion, training, recognition and reward as well as structuring of work
hours, are evidence of practices that act as barriers to diversity at an organisational level.

Resistance to change at an organisational level

The definition of organisational culture insofar it pertains to shared values, beliefs and norms
constitutes and obvious platform for organisational resistance to change. Robbins has identified the
following sources of organisational resistance to change:

Organisations consist of established structures, procedures and systems to maintain stability and
are managed to fit the values of the organisation. The selection process systematically selects
certain people while rejecting others. Training and other socialisation techniques reinforce specific
role requirements and skills. Job descriptions, rules and procedures for employees to follow are
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established guidelines in terms of behaviour. Within these procedures and processes, it might be
that diversity is resisted in that only people from a specific group may be seen to be competent is a
particular job.

Organisations are made up of various departments and groups of people that are grouped
according to their functions and objectives. These form independent subsystems within the
organisation. Because the different subsystems are interdependent, change in one necessarily
affects the status quo of the other departments. Changes in one department might be accepted
and even planned by the employees within the department, yet the effect thereof is not accepted
by employees in other departments. Change is one department can be resisted by other
departments to the extent that the planned change cannot be sustained.

Individuals may resist change in other individuals behaviour because they oppose the effect that it
subsequently has on them. One individual in a group might decide to change their behaviour, but
the group norms may act as a constraint. For example if one individual union member accepts
changes in their job as suggested by management, but the union norm dictate resisting any
unilateral change made by management, the individual will most likely resist the suggestions made
by management.



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CHAPTER 6

Learning diversity competence involves the challenge of self-reflection and self-development.
Diversity involves not only learning about other cultures or differences between men and women,
but to learn and understand your own diversity paradigm. The self-discovery process is sometimes
challenging because it is sometime uncomfortable to identify and acknowledge your own prejudices
and stereotypes.

Approaches to diversity

Here follows a summary of five approaches from the least effective to the most effective.

1. Representation (numerical focus)
Managers seek to meet numerical representation prescriptions as to who should be included.
The goal is not diversity but the inclusion of representative numbers of the various groups that
make up the larger community. This approach is most often motivated by legal considerations.
Affirmative action is an example of this.

2. Representation (attribute diversity)
This approach focuses on ensuring that a given mixture of people contains an appropriate
representation of attributes. Examples would include the company that is forced to consider its
racial and gender workforce representation because of pressure from customers, or the team
leader seeking to ensure that their teams composition is appropriate for the nature of its tasks.
This inclusion, which is motivated by business considerations, has inherent value.

3. Understanding differences
This approach seeks to ensure that the relationships between the people in a specific mixture
are appropriately respectful, harmonious and sensitive. The goal is to foster understanding and
acceptance of differences so that tension and conflict can be minimised. A central assumption is
that the greater the harmony within the mixture, the more likely it is that productivity will be
optimised.

4. Managing workforce diversity
The emphasis is on the managers ability to access the talent of an increasingly diverse group of
people. A key question is whether organisational practices and systems based on assumptions
of homogeneity will work in the midst of diversity, or will it be necessary to do business
differently as the workforce becomes more diverse? If these practices and systems cannot
accommodate a diverse workforce, this approach prescribes diagnosing and changing
organisational culture accordingly. The notion that managers and their organisations may have
to change significantly differentiates managing workforce diversity from the three previous
approaches discussed above.
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5. Strategic diversity management
This approach enables managers and individuals to address any diversity mixture. Accordingly,
it represents generalisations from the previous approaches that have primarily targeted the
workforce. As managers come to understand diversity in its true sense, they will need tools for
addressing mixtures other than the workforce. Strategic diversity management meets this
need.

The financial results and forecasts of the organisation have a major impact on how diversity is
approached. Most organisations set targets with a numerical focus, whereas it should rather
follow the strategic diversity management or managing workforce diversity approach.

Different value orientations

Research has shown that values based in various cultural groups differ and influence individual
employees work related attitudes and behaviour. People also differ because of differences in
gender, historical background and religion and this also influence an individual. People also differ
because of acculturation to the mainstream culture.

Below are six different value orientations that consist of two different perspectives. People usually
tend to lean more towards one of the two perspectives within each specific value orientation.

1. Individualism versus collectivism
Individualism has to do with the strength of ties that should exist between individuals.
Individualists believe that such ties should be loose and that individuals should look after
themselves and their immediate family. In contrast, collectivism believes that people should
belong to in-groups or collectives which should look after them in exchange for their
unconditional loyalty. In collective cultures people are integrated into strong, cohesive social
systems throughout their lives.

2. Power distance
Power distances reflect the degree to which the less powerful member of a social system
believes that power should be distributed in the system and accept this distribution. In high
power-distance cultures, it is believed that there should be clear superior-subordinate
differences in power. There is often a great deal of dependence of subordinates on supervisors
and a clear hierarchy of authority in organisations. In low power-distance cultures, there is
limited dependence of subordinates on supervisors and there is a preference for consultation or
participation in decision making.

3. Achievement orientation versus ascriptive orientation
In achievement-orientated cultures, accomplishment serves as the basis for an individuals
identity and the status he or she is accorded by others. Accomplishment is often measured by
economic wealth or material possessions. In contract, ascriptive-orientated cultures, people
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tend to attribute status to others on the basis of factors that are beyond their control, including
gender, family connections and inherited wealth or title. Such cultures to show respect for
supervisors is important. Wisdom that comes with age is often highly valued.

4. Universalistic versus particularistic orientation
Universalistic cultures tend to follow a set of universal codes of practice and rules that are
applied uniformly to all people. They value literal adherence to contracts and favour rational
decision making. Particularistic cultures place more emphasis on relationships and are willing to
bend the rules to accommodate particular circumstances and individual needs. They feel that
decisions about other should take into account friendships with them. Many western cultures
subscribe to a universalistic orientation and believe that organisational rules or policies are fair
only when they are applied in a standardised fashion. Eastern cultures often subscribe to a
particularistic orientation and believe that policies are fair when they consider the specific
needs of individuals.

5. Time orientation
Time orientation refers to a cultures view about time and the emphasis placed on the past,
present and future. Some cultures view time as a linear concept and place a great deal of
emphasis on efficiency and punctuality. Within these cultures, punctuality is associated with
success and likeableness, and the view that time should not be wasted is evidenced by the well-
known phrase time is money. However, other cultures have relatively flexible views about
time and make allowance for wide margins in judging lateness; individuals may be considered to
be on time even if they arrive well beyond an expected arrival time. The quality of
interpersonal relationships is considered more important than punctuality.

6. Communication style
Cultures vary considerably in terms of several aspects of communication style. These
differences often result in misunderstandings in organisations. Communication style can be
viewed in terms of two basic elements: 1) the goals of communication and 2) the directness of
communication.

There are cultural and subcultural differences in the goals associated with communication. In
collective cultures, maintaining harmony and saving face are important goals of communication
and individuals who promote smooth or pleasant social relationships by showing empathy and
respect for the feelings of others are highly valued. In contrast, members of the individualistic
cultures are more concerned with communicating the truth and with basing their arguments on
facts and rational decisions.

Cultures may also vary in terms of directness of communication. People in collective cultures
often use indirect forms of communication and dont often get directly to the point. They also
place great value on non-verbal communication. People in individualistic cultures emphasise
verbal communication and are direct in the communication style. They prefer to talk about
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tasks and other non-personal issues. Members of collective cultures, therefore often consider
individualistic cultures as rude and impolite.

Competencies required working with diversity

1. Interpersonal skills to enhance diversity competence

Chrobot-Mason and Ruderman define diversity intelligence as the ability to function effectively
in a diverse work context where the assumptions, values, beliefs and norms of ones upbringing
are not uniformly shared by other people in that work group. The three essential competencies
for working with diversity are:

Knowledge of cultural or value differences
Increased self-awareness
Various multicultural skills

Multicultural skill Description
Conflict Management Inherent in any diverse work group is the potential for conflict due to
misunderstanding based on differing perceptions and values.
Managing conflict is therefore an essential skill in working with other
people and also when managing people who differ, and as a result,
have conflicting interests. Leaders will manage diversity most
effectively when they are able to understand and attend to different
perspective and interests within a conflict situation.
Interpersonal communication It is important for everyone who wants to make a difference in terms
diversity to engage in open and two-way communication with people
from different backgrounds. One of a managers challenges is to
encourage and facilitate open and meaningful exchange of ideas and
opinions in a diverse work environment. Although it is easier to listen
to people who think the same as you do, diversity competence requires
you to listen with an open mind to different perspectives and attempt
to understand them.
Feedback-seeking To work effectively with difference, you constantly need to seek
feedback from others to evaluate your own behaviour and the impact
thereof on other people. How you are experienced and perceived by
others is as important as how you understand their differences. Even
with the best intentions, you may at times offend people
unconsciously, yet by seeking feedback you will become aware of when
and why this happens, enabling you to restore peaceful relations.
Role modelling Being committed to managing diversity means that you will show,
through your actions and words, a commitment to enhance and
embrace diversity in all aspects of your work. Create and maintain
relationships with co-workers who are different, and speak out with
regard to systems and practices that my hinder diversity. Always be
open to new ways of doing things.

In order to develop these skills, certain micro-skills are important.
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The following list of micro-skills is indispensable to diversity competence:

Be non-judgmental
Be flexible
Be resourceful
Personalise observations
Pay attention to thoughts and feelings
Listen attentively
Observe carefully
Assume complexity
Tolerate the stress of uncertainty
Exercise patience
Manage personal biases
Keep a sense of humour
Show respect
Show empathy

The diversity competence of leaders and managers

The following management attitudes and skills are requires, as well as the processes needed to
change managers behaviour and to enhance their diversity competence.

Attitude and skill needed The process required
Increase cultural self-awareness Involve managers and leaders in the process of
managing diversity
Enhance understanding of cultural differences Involve managers in a diversity planning workshop
Learn about other cultures in the workplace Adjust existing management training programmes to
include significant sections on managing diversity
Change management skills Enhance managers ability to manage all people
Mentorship Train manager in mentorship skills
Continuously communicate, discuss and evaluate
progress with all managers.




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CHAPTER 7

Reasons for failure and success of diversity management initiatives

Reasons why diversity initiatives fail
What is needed for a diversity management initiative to be
successful

Diversity management are driven
from the human resources or
employment equity offices as a
human resource or employment
equity project.

The managing diversity strategy in the organisation should be driven
by a steering committee that is represented by all sections and
levels within the organisation. It should be the responsibility of the
whole organisation.
Diversity training is initiated from a
social or moral responsibility
perspective.
Diversity initiatives should be based primarily on a sound business
case. Business performance goals should drive the organisations
strategy with regard to introducing management of diversity,
despite the fact that it is also implicitly facilitated by moral, ethical
and legal justifications.
Diversity initiatives are driven as a
human resources development or
employment equity project.
Managing diversity should be a holistic long-term change process,
integrated with all aspects of the business, its policies, structures,
HR practices and its culture. According to OMara defining diversity
strategy as a process allows business to develop a natural capacity
to tap the potential of all employees. This capacity naturally evolves
by aligning all human resource practices and policies with the
overall diversity management strategy. For example the
recruitment and selection strategies should attempt to diversify the
talent pool without compromising standards and fair, unbiased
selection will support a diverse workforce.
Diversity training has management
support, but not its commitment.
Top management should be visibly involved and participate actively
in the entire process of managing diversity from the planning
stage through to maintenance and renewal. It is emphasised that
little will change if top management does not commit real time and
pursue tangible diversity targets. Successful diversity initiatives
usually have an appointed senior-level advocate or champion.
Off-the-shelf diversity training
programmes are bought and
implemented. These training
programmes are being developed and
facilitated solely by external
consultants.
The diversity strategy is a long-term process that includes constant
assessment of whether the organisations systems, practices and
policies are relevant to the diverse needs of its workforce and
customer base. Customised training programmes should be
designed as part of diversity initiatives to meet the unique needs of
a specific employee corps. Diversity initiatives should be based on a
need analysis. A diversity audit could identify diversity issues
unique to the particular organisation and gauge its culture. Training
should not rely on external expertise; internal involvement will
communicate ownership and commitment and will identify the
needs of the employees. Should training fail, the organisation
should also take accountability. Successful diversity initiatives are
developed in partnership between internal employees and external
subject matter experts or consultants.



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Reasons why diversity initiatives fail
What is needed for a diversity management initiative to be
successful
Diversity training initiatives build an
awareness of diversity, but provide no
skills, competencies or everyday tools
for working with diversity on a daily
basis.
Managing diversity in the workplace has become a business
necessity. Managers are not competent in working with diversity at
the various levels in the workplace. Flexibility as a core skill is
important in managing. Diversity training should empower
employees to transfer learning form the classroom to the workplace
by means of relevant and useful skills and tools.
Diversity training initiatives have no
follow-ups.
Diversity training initiatives should be followed up in terms of their
impact and employees should be continuously empowered through
on-going diversity awareness campaigns and the sharing of diversity
success stories.
Implementation of diversity initiatives
has no effect on the corporate
culture.
A corporate culture should be developed that supports diversity
management. It should be open to continuous development and
that values diversity is essential for the success of all diversity
initiatives.

Pitfalls in respect of diversity initiatives

Various barriers have been identified that can cause a diversity programme to fail.

Racism
Racism, sexism and other -isms still plague the workplace, and these keep people from
fully accepting efforts to manage diversity.

Stereotypes
Stereotypes are fixed, and distorted generalisations are made about all members of a
particular group. These positive and negative images are influenced by perceptions,
attitudes and behaviour. All people are guilty of stereotyping, which acts like a filter and
helps to avoid mental overload.

Prejudice
Prejudice is an antipathy based upon faulty and inflexible generalisation.

Discrimination
Discrimination is the denial of equality. The effect of discrimination is to exclude people
from benefits because of a quality such as skin colour, gender or age.

Conflicting value systems
People tend to feel comfortable with people who are similar to them and uncomfortable
with those who are different. Values tend to be relative stable and enduring. A value
system is a hierarchy based on a ranking of an individuals values in terms of their intensity.



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Resistance to change
Both advanced industrialised and developing countries are changing in important ways that
have a significant impact on organisations and their members. Some of the pressures for
change in South Africa are:

Globalisation
Information technology
Changing nature of the workforce
Legislation

Resistance to change can take many forms, for instance:

Reduced turnover
High turnover
Absenteeism
Less motivation
Lower morale
High accident or error rates
Strikes
Employee grievances and disciplinary actions

Fears among white and black people

There are five generic fears among white people which inhibit the effective management of
diversity:

Fear of black revenge or retribution
Fear of not finding/losing jobs owing to affirmative action
Fear of anarchy or poor standards
Fear of punitive taxation or redistribution of wealth
Fear of nationalisation

There is also fear among black people in South Africa:

Fear of being labelled a sell-out
Fear of being sold out
Fear of co-option (of being included in the white group)
Fear of white manipulation
Fear of victimisation
Fear of being a token (window dressing)
Fear of being marginalised
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Affirmative action implications

Some of the obstacles to implementing diversity are:

A black lash from whites who protest about reverse discrimination, tokenism and
favouritism.
Poaching of black employees
Job-hopping of qualified and skilled black employees
Window dressing the appointment of persons from previously disadvantaged
groups in special positions where they do not have any authority

Lack of overall strategy
To benefit from diversity as an important organisational rescue tool, management must:

View the management of diversity as an important business issue
Understand the key issues in a multicultural workforce
Develop competencies required to manage individuals from different racial and
cultural backgrounds
Manage diversity as a total change process, which included organisational issues such
as:

= Culture
= Work environment
= Organisational studies
= Management styles
= Policies and procedures
= Employees attitudes
= Role of human resource departments


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Essential organisational strategies

Commission of racial equality in America has devised a 10-point plan with various suggestions to
ensure that managing diversity becomes an integral part of the organisations structure and
processes:

a. Developing policies to cover recruitment, training and promotion
b. Action plans with specific and measurable targets
c. Pan-organisational awareness training and additional training for those staff involved in
recruitment, selection and training
d. An organisational diversity audit to establish the current position and enable progress to be
monitored
e. A review of all recruitment, selection, promotion and training processes
f. The formulation of job descriptions for all roles
g. Where appropriate, the offer of pre-employment training to prepare job applicants for
selection tests and interviews, and consideration of positive action to encourage under-
represented groups to apply for vacancies.
h. Consideration of the organisational image and determination of whether a more positive
image could be presented
i. Consideration of more flexible working arrangements and determination of what specialist
equipment is required for disabled employees
j. The development of closer links with local community groups, schools and other
organisations





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CHAPTER 8

Diversity models

1. Coxs model for work on diversity

Cox argues that the change to a multicultural organisation involves activities in each of five
components. The model makes clear what changes to organisational practices and policies must
occur for an organisation to become multicultural. The five components are:

Leadership
Research and measurement
Education
Alignment of management systems
Follow-up

There are multiple activities representing each component. See figure 8.1. (Important)
According to Cox success at diversity management can be assessed by examining an
organisations progress with each of the five components. Progress is likely to be uneven,
because the organisation my advance faster in the leadership component and then develop the
education component. To become a multicultural organisation requires a systematic approach
to diversity management, which necessitates advances in each of the five components.

2. Thomass managing diversity model

Thomas has devised a managing diversity model based on an understanding of some of the
generic principles that have been found to work both abroad and in South Africa. The model
sets out six phases in a managing diversity all levels in the organisation:

Individual phases (phases 1 and 4)
Interpersonal phases (phases 1, 2, 4 and 5)
Organisational phases (phases 2, 3 and 5)

The model aims to develop multiculturalism within organisations, the outcome of which is the
creation of organisations that have strong visions around which people assimilate, but which
utilise individuals styles, viewpoints, insights and the conflict which differences may cause as a
sources of competitive strength. See Figure 8.2




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Phase 1: Creating the business case by briefing top management
Top and senior manager must formulate clear business reasons for starting a managing diversity
process. This should be firmly based on how managing diversity can increase profitability or
market share.

The goals of phase 1 are to:
- Create awareness of the need for a managing diversity process as a strategic and
competitive advantage
- Gain top management ownership of the process
- Identify sustainable business reasons for the organisation to embark upon the process
- Convey and clarify senior executive roles in implementing the initiative
- Clarify the difference between affirmative action and managing diversity
- Create an enthusiastic vision which will sustain a process


Phase 2: Diversity research or organisation assessment
During phase 2, information is collected on organisational culture and behaviour. Reviewing
affirmative action policies and targets set, provides an affirmative action profile and an analysis
of the factors that drive the affirmative action programme. This is the easy accessible
information, but understanding the culture is a challenge.

In the early stage of a diversity process, it is important to identify which unspoken rules and
assumptions hinder productivity. This is done through document reviews, focus groups and
anonymous stakeholders surveys. Employee participation is important during this phase.

The goals of phase 2 are:
- Identify positive and negative issues that could hamper or promote the achievement of the
vision of managing diversity effectively
- Isolate those factors of organisational culture that create barriers for employees to
contribute fully to the goals and profitability of the organisation


Phase 3: Communicating with stakeholders
Leaders of the organisation must commit to talk to employees affected by the change.
Communicating with stakeholders has the dual purpose of explaining the change process and
engaging them actively in the process. Make provision that communication occur, bottom-up
and top-down as well as laterally between functional departments and stakeholders. Flexible
systems must be put into place to ensure that communication is regular, comprehensive and
provides for on-going feedback.



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Communication is a way of: Developing a joint vision of the process
Identifying problems that hinders the process
Developing of relevant measuring tools to be used in research
Monitoring and evaluating the success of the process
Ensuring joint responsibility and commitment to the process

The major goals for phase 3 are:
- Ensure that all stakeholders understand the managing diversity process and can participate
in it appropriately
- Minimise fear associated with the managing diversity process


Phase 4: Educating stakeholders
Based on the needs identified in the diversity research, a programme of strategic intervention
must be planned. Initially it will include workshops explaining managing diversity, stereotyping,
prejudice and the skills required to manage a diverse workforce.

The educational process proved and opportunity for management to engage with employees
and other stakeholders in clearing the values of the organisation. A critical aim is to educate
stakeholders, with an end goal of improving quality and service to customers so that their
attitude change is sustained. A multi-level, broad-based educational process is recommended
if a top-down strategy is expected to filter down to the lower levels of the organisation in order
to speed up the process.

The goals of phase 4 are:
- Ensure that all staff is exposed to an understanding of how to work productively with
someone who may differ from themselves, thereby promoting the goals of superior quality
and customer service.
- Ensure that all staff and other significant stakeholders are part of the change process
- Promote the value of diversity within the organisation and hence a respect for all by all
- Develop skills and behaviour options necessary to form quality working relationships
- Develop participative systems which will promote the understanding of managing diversity
in the organisation and will thereby ensure sustainable results
- Provide an understanding of how to manage diverse workforces effectively
- Develop an affirmative action or managing diversity task force to sustain the managing
diversity process






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Phase 5: Reviewing systems and structures
Even though there is a clear commitment of managing diversity, historical structures and
practices might still exist in the organisation. A methodical diversity process will highlight these
subtle issues which need to be addressed.

During this phase, the organisation will be challenged to act on the awareness of those
employees who have not historically been part of the workforce or who have suppressed their
needs and individuality over the past years. This demands a degree of flexibility on the part of
the organisation and an awareness of the diversity of the people comprising the organisation.

Managing diversity should be an integral component in managerial and supervisory evaluation
and performance management.

The goals of phase 5 are:
- Ensure that human resources and systems support the organisational vision of developing
an all-inclusive work environment
- Understand how the organisation can work towards enhancing the work-life balance of its
employees
- Structure the organisation to take full advantage of the heterogeneity of the workforce


Phase 6: Monitoring and evaluating the diversity process
People management and managing diversity are often regarded as the soft side of the
business, and human resources strategies are given lower priority than those of finance,
marketing and operations. It is therefore critical to the strategys success to measure and track
performance.

Using the audit results from the diversity research, it is possible to plot the organisations
progress in an area and benchmark it against itself over periods of time in the following areas,
amongst others:

- Lower staff turnover and avoidance of the revolving-door syndrome.
- Tapping into the range of skills previously absent from the organisation.
- Attracting and retaining the best talent.
- Increasing the skills of staff at all levels through their active participation in the process.
- Enhancing creativity and problem-solving, both are critical for competitiveness.
- Ensuring better labour relations and communication throughout the organisation.
- Responding timeously to diverse marketers
- Enhancing job satisfaction to achieve superior productivity and quality.
- Promoting flexibility, adaptability and pro-activeness within the organisation.
- Utilising peoples skills optimally

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This model largely focuses on the processes to be followed, but also offers some ideas on the
initiatives that can be implemented to manage diversity. There seems to be agreement
between researchers that affirmative action is a short-term process for diversifying an
organisation and managing diversity is a long-term process.

3. An organisational transformation model

Van Rooyen developed a model that incorporates affirmative action and employment equity as
well as most aspects of transformation and change. There are 5 phases to this model.

Phase 1: Environment and destabilising forces
Some researchers are of the opinion that organisations need to keep abreast of what is
happening in the external environment to be successful in retaining customers, building market
share, outpacing competitors or capitalising on new business opportunities.

The destabilising forces when managing diversity are:

External to the organisation:
Economic pressure of globalisation and major skills shortage
Political demands of the ANC, empowerment of previously disadvantaged people
Legal Employment Equity Act, Skills Development Act and Labour Relations Act

Internal to the organisation:
To operate more effectively management are required to manage organisations differently. A
shift in authority from your boss to your customer is necessary for survival. The nature of work
is changing and so are the values people bring with them to work.

Phase 2: Strategic alignment
a) Awareness creation/implications for the organisation
Organisations can no longer ignore the changes in the internal and external environments.
Organisations undergo a natural change process; adjustments will develop according to
custom, convenience, power or notion. Top management should direct change by:
Diagnosing and understanding the destabilising forces
Interpreting the implications of the forces of the organisation
Realising the extent and complexity of the organisation change process

b) Purpose and philosophy of the transformation
The change effort should be a working blueprint of how the organisation will appear after
the transformation. Top management should be clear about the purpose and philosophy of
the transformation. Reasons for transformation should be closely linked with increased
profitability and / or market share.

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A fundamental decision for managing diversity is whether to adopt a participative approach.
Organisations should formulate a policy statement that provides an overview of the purpose
and philosophy of the managing diversity/affirmative action transformation.

c) Organisational assessment/audit

An assessment process should identify the present belief systems of employees and the
impact of these systems on the way work is done. The current status of the organisation in
relation to employment equity is a critical step in the development of an affirmative action
and managing diversity strategy.

i. An investigation into the workforce composition
This analysis will provide a framework for setting goals to improve the participation
of black people and women at all levels and will provide benchmark information to
evaluate over time.
ii. Review of human resource policies and procedures
Policies and procedures that act as barriers to the appointment, development, and
promotion should be identified. These should be questioned to make sure that they
are fair and not discriminating. In reviewing policies and procedures the following
questions can be asked; is the policy really job-related; is the policy valid; is the policy
arbitrary; is the policy a business necessity; does the policy conform to legislation
and does the policy affect previously disadvantaged people.
iii. Audit of attitudes and perceptions
Audit of attitudes and perception has two objectives 1) to provide an indication of
employees perceptions of and attitudes of current practices and 2) to provide an
indication of employees perceptions of and attitudes to other factors impacting on
management of diversity.

These audits will prove an overview of the current climate. In devising tools of assessment,
it is advised that employees participate. This will create a sense of involvement,
commitment and joint responsibility. The organisational assessment will highlight the
barriers to an effective managing diversity strategy will provide the basis for planning
comprehensive strategic interventions.

Phase 3: Communication to sensitise stakeholders
In times of change communication is essential and important, specifically for those that will be
affected by the change. Managing diversity is a transformation strategy and this can make
people feel insecure. They may fear losing their jobs. Communication with stakeholders should
not only explain the purpose of the change process but should also emphasise the importance
of participation by employees in designing the change strategies.


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Phase 4: Determine strategy for transformation
It is critical to consider where the organisation wants to be in future, where it currently is, and
the gaps that exist between these two points. This strategy should move the company from its
current state to its desired state.

It is important to develop different strategies to address the two concepts. They should
mutually support one another, resulting in a transformed organisation with increased
performance.

a) Affirmative action strategy
According to the proposed model, affirmative action implementation rests on two pillars:
1) Redesign of human resource structures, policies and procedures
Redesign procedures to eradicate all forms of discrimination that are part of structures
and practices. This may include recruitment and selection, promotions and access to
information. Affirmative action should be a component of overall management practices
and should therefore be integrated with other processes such as human resource
planning.
2) Equalising opportunities
Identification of potential
Increased, accelerated development
Coaching and mentoring
Other mechanisms job category targets and objectives; allocating vacancies; spare
creation

Once above have been implemented, an organisation will be close to achieving the
objective of creating employment equity. The organisation will have a solid foundation
for implementing a managing diversity strategy.

b) Managing diversity strategy
Managing diversity is a comprehensive managerial strategy for developing an environment
that works for all employees, and all employees are allowed to reach their full potential. It
goes beyond race and gender issues and includes many dimensions focusing on the
empowerment of the workforce. Managing diversity requires a fundamental change in the
organisations culture. This could take years to implement. Corporate culture is defined as
the basic assumptions driving the life in an organisation. Managing diversity strategy can
only be implemented when the culture is changing. A four-part plan can be implemented to
ensure the success of such a culture change process:

1. Shared vision
Identifying the ideal culture and it must be clearly communicated that diversity is being
actively pursued as a business imperative.

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2. Shared culture
Shared culture build a sense of collective identity by achieving a consensus on culture.
a. Leadership
The leadership task of building and maintaining a culture must occur throughout
the pyramid. Culture change levers that management should use include:
articulate the new values at every opportunity; ensure that systems are
congruent with the new culture; create heroes who are supportive of new values;
guard against managerial practices that are not supportive of the new culture.
Clear and consistent leadership is needed.
b. Educating the workforce
Management should engage with employees in crystallising the new values or
roots of the organisation. Special attention should be given to equipping
mangers with skills to manage a diverse workforce effectively.
c. Reviewing systems and structures
Identify those systems and practices that oppose the new culture and change
them first. In line with business practice, the modification of structures into self-
managing work teams should be considered.
3. Shared performance
When performance is shared, people take responsibility for their own behaviour and
performance. There should be clear, quantifiable objectives with set timelines.
4. Shared commitment
Shared commitment results in everyone pulling in the same direction. On-going
communication is vital to highlight success stories and achievements.

Changing the culture is a long-term process. The process of diagnosis, planning,
intervention, monitoring and evaluation must be on-going. Reaching the desired end state
required that you keep track of where the organisation is going and to what extent the gap is
shrinking.

c) Participative structures supporting and controlling the transformation
Because of the lack of progress with affirmative action, many companies have accepted that
a top-down approach is necessary. A bottom-up approach is just as important.
Empowerment and participation are the themes in this approach. Forums and consultation
should take place. Participative support structures should be put in place. To ensure that
this happens the following must be done:
Affirmative action/managing diversity support person should be identified to assist
the managing director.
Advisory committee (employees from various departments) should be formed to:
- Promote and implement the transformation process
- Make recommendations on matters affecting strategy and policy formulation
- Monitor and evaluate the effectiveness of the strategy
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- Advising on the communication process
This committee can be advised by external consultants.
Functional heads and line managers are accountable for implementing the
transformation process and reaching the set objectives. Human Resources are
responsible for initiating, facilitating and providing consultative support and advice.

Phase 5: Continuous monitoring and evaluation of the transformation
In all managing diversity models, continuous monitoring and evaluation of steps are highlighted as
critical to sustain the change efforts.

According to Thomas, affirmative action progress can be measured by:

A greater number of women and black applicants applying for positions in the organisation
compared with previous years
A greater number of such applicants hired
Lower turnover of women and black employees
A greater number of women and black employees being mentored for senior positions and
being placed in well-structured, individualised training and development programmes
A decrease in the number of complaints of discrimination and unfair labour practices lodged by
employees and unions
Increasing business being done with black-owned businesses
Greater parity in the salaries of women and black employees compared with white male
counterparts

Further measures of success of a managing diversity strategy are:

Sales volumes and market share before and after programmes implemented by diverse
marketing teams for diverse consumer groups
The quality of information exchange up and down the organisation
External recognition as an employer of choice and accompanying recruitment advantage
Non-traditional problem resolution, reduction in cycle time, innovative products and services
Access to global markets and sourcing new markets
Increased loyalty and reduced friction among employees as they come to understand
differences
Employee commitment as evidenced in coming to work, lower absenteeism, investing in
learning, caring about deadlines and quality of output
Fair treatment evident in thorough employee evaluation, provision of information about career
opportunities, promotion transparency and willing ess by management and employees to work
in partnership



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Strategic plan to implement diversity management

Various approaches can be used to develop an overall diversity plan for a company. The integrative
organisational approach gives the best results.

The following steps are part of the overall diversity management plan:

1) Develop a diversity policy and plan
2) Establish commitment to the management of diversity
3) Gain management commitment
4) Develop a comprehensive communication strategy
5) Involve employee representatives
6) Manage changing attitudes
7) Establish a diversity committee to oversee the process
8) Identify barriers to the effective implementation of diversity management
9) Align human resource policies and practices
10) Provide employees and other stakeholders with on-going feedback

If organisations manage diversity effectively, it will result in a performing workforce. This can only
be achieved by establishing a new organisational culture.

The following are important in this whole process:

Transforming leadership
Training managers and employees in diversity skills
Supporting lifestyle and life needs
Setting up special support groups
Skills training
Constant awareness of cultural differences and biases
Linking diversity with business priorities

Measuring diversity initiatives/strategies

The following key elements should be integrated into any diversity management initiative:

1. Conduct self-evaluation to create a better understanding of self and others.
2. Apply a balanced and objective approach to ensure recognition of differences.
3. Provide opportunities for people to explore their experiences and values.
4. Include both Eurocentric and Afrocentric strengths in the institution.
5. Extract the best management tools from groups.
6. Management should work toward reconciling individualistic and collective value systems.
7. Institutions should provide for an on-going cultural awareness and diversity training.
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8. Reward good work
9. Provide substantial support
10. Integrate diversity into management strategy
Conducting a diversity needs assessment
Developing a shared vision
Compiling an action plan
Monitoring and evaluation
11. Empower staff to cope with diversity
Empowering programmes should include
The identification and handling of stereotyping, bias, prejudice, and assumptions
Assistance to learn about, understand and value differences
Diversity as a system change process
The movement towards institutional and individual change
Conflict management and problem-solving skills.