"Diversity and inclusion in the workplace are essential business tools today." Andy Wright, Vice President of Advertising, The New York Times
Diversity and inclusion policies in the workplace have become de rigueur for most companies. Companies realize that diversity brings with it various benefits that can help it perform much better especially at a global level. They have recognized the importance of diversity in their work force that is not just important but essential for their survival in today’s globalized and fast changing world. A diverse work force brings with it new ideas, perspectives, out of box thinking and framework for rational decision making. With the help of an effective strategy companies have increased team productivity, engaged senior executives in diversity, increased workforce diversity, generated new levels of innovation and creativity, and redefined their approach to product development, marketing and sales.
For most of the biggest organizations developing products that cater to the needs of people located in different parts of the globe is very important. The case of Intel is interesting in this regard. Intel had to develop a low cost processor to remain competitive in Indian and other sub continent markets. Keeping this is view it developed a R&D centre at Bangalore, India which focused research primarily on such evolving markets that were crucial for Intel’s growth. People from all over the globe collaborated with the researchers from India to develop the Intel Atom processor that we find in most of the net books today. The success of most of the innovative companies in the world like Intel, Google, Facebook, 3M, DuPont, AT&T can be largely attributed to this factor.
So what are the priorities of companies when it comes to diversity and inclusion? A recent Forbes study on companies found that “43% cited retention and development of talent followed by ensuring diversity in the workplace (35%), developing a robust pipeline of diverse talent (29%) and managing cross generational issues (28%)”. However we still find that many companies find it difficult to adapt to this new phenomenon of globalization of the work force or how to use it to their advantage. In India and most other developing economies the idea of diversity largely revolves around the concept of gender diversity. But these initiatives have a problem of their own as a recent article in Economic Times indicates that most of the time these policies lead to forced hiring at the cost of merit. Diversity should not just be a statistic as Kalpana Morparia says CEO, JPMorgan India: "There should be absolutely no reservation or tokenism in the name of diversity. Meritocracy has to be gender-neutral."
How do organizations develop effective diversity management systems without compromising on merit? With more companies going global an effective diversity and inclusion strategy will be vital for their success. This fact is being realized by companies and some of them are doing a remarkable job in emulating the models practiced by companies in the west and restructuring it to their advantage. Let’s take for example Huawei Technologies Co., a $28 billion Chinese networking and telecommunications equipment supplier is extending its global reach. At the same time, it is looking to create a talent infrastructure attuned to different markets while building a global culture of shared values and a human resources capability that can support the company’s business operations worldwide.
With a large part of population in the developed west reaching the age of superannuation the coming decades we will see significant shift in employment trends with a major chunk of the work force coming from Asian and African countries. Also the rise of emerging economies as crucial markets for multinationals will lead to an increase in the requirement of people with varied skills and understanding suited to these markets. So recruiting and managing a diverse workforce will be a key challenge and HR will play a central role in designing effective diversity management systems that can be leveraged for successful business. Some points in this regard are enumerated below:
A holistic approach towards diversity management will surely help companies to achieve key business priorities. Organizations need to integrate the various facets of diversity management into their organization culture in such a way that it becomes a habit.
This article has been authored by Arindam Bhattacharjee & Bishal Hetampuria from XIMB.
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