Analysis of Diversity in the Workforce
Analysis of Managing a Diverse Workforce The Issue: The workforce and marketplace of Our Class, Inc. ... Our business will continue to languish until we implement a diversity management strategy. The term diversity is defined as, “The condition of being different or having differences” (Diversity, 1974, p. ... In the broadest sense, the management of diversity is a business’s reaction to rapid cultural and sociological changes. Internally, diversity management means providing a climate where all employees feel that they are valued by and contributing to an organization. ... (Becker et al, 1997) Managing diversity is not just obeying the Equal Employment Opportunity (EEO), Affirmative Action (AA) and America with Disabilities Act (ADA) laws. Managing diversity is goes beyond having a workforce with minority, women and disabled representation and requires the management of the behavioral differences each person brings to the organization. Managing diversity allows you to adopt an “us” rather than a “them” (Becker et al, 1997) attitude among your workforce. “Diversity will refer less to racial diversity, but increasingly to diversity of culture, age, gender, skills, abilities, religion, and sexual orientation. Diversity becomes a problem when workers do not accept, understand, appreciate, or tolerate the differences between each other” (Schuman, No date). According to the Managing Diversity newsletter, the workforce in the United States is changing dramatically. The monthly newsletter estimates that because there are 6 million fewer teenagers today than in 1980 and more people will be leaving the workforce than entering it, leaving organizations with worker shortages. ... Why do we need to manage diversity? ... It is beliefs and perceptions such as these that necessitate managing diversity” (Becker et al, 1997). Potential benefits derived from managing diversity include increased revenue, improved productivity, risk mitigation, and the maintenance of strong employee relations. The downside may include possible costs incurred with the implementation of diversity management. ... According to Mark Heston, Director of Human Resources for the Federal Home Loan Bank of Des Moines, Allstate Insurance Company became the leading insurer in urban areas due to workforce diversity. ... Once they culturally diversified their workforce, they earned credibility and trust with the urban market and the resulting factor was increased revenue for Allstate Insurance Company. Organizations can also improve productivity through diversity. ... By utilizing the different views and opinions, organizations are provided with a multitude of ideas for solution analysis. ... By managing diversity, organizations are visibly recognizing the needs of individual employees. Yes, there is a downside to implementing the management of workforce diversity – cost. However, are the dollars and cents spent today really that much when compared to the potential benefits that managing diversity could provide tomorrow? Mark Heston estimated that the Federal Home Loan Bank of Des Moines spent approximately $20,000 to $25,000 to implement diversity management and that the Bank has budgeted another $7,500 for annual follow-up training. The Bank has approximately 175 employees and currently has a diversity ratio of 11%. ... Heston agreed that the implementation of diversity management had increased the Banks bottom line through the diverse nature of thoughts from differing individuals rather than a diverse market penetration.