Rewarding Diversified Employees

Rewarding Diversified Employees

Rewarding Diversified Employees

Introduction

Several factors account for growing organizational diversity: (a) the increased importance of globalization for profitability and long-term survival in many organizations; (b) changes in the structure of how work gets done; and (c) the changing composition of the labor force in many countries due to an aging population, immigration, and the restructuring of the economy (Jost, 2006).

There are many dimensions on which people meaningfully differ: race, ethnicity, citizenship, gender, class, family structure, sexual orientation, physical abilities, age, industry, occupation, function, education, and so on. In many cases, the intersectionality or combination of these characteristics has more effect on inter-group relations than any one characteristic by itself (Friedman, 2006). Important differences are those that have consequential effects on access to and experiences in jobs and careers, and in life opportunities and rewards.

Discussion

These circumstances have created new demands on employees: They are being asked to work in shifting and diverse coalitions of people who may work inside or outside the company and across both geographical and legal boundaries. Although in earlier time periods, many labor forces were quite diverse in terms of ethnicity or nationality, most managers did not think about the need for managing diversity, because their organizations were engaged primarily in the mass production of goods in very large and integrated companies (Ditomaso, 2007). Instead, they emphasized careful planning, effective controls, and creative marketing. Innovative workplaces, in contrast, require good people skills, effective information systems, and often cross-cultural competence and the ability to work effectively across organizational boundaries (Brewer, 2009).

As a result of growing organizational diversity and of the wide array of differences among people, being able to work effectively with people who do not share the same background, experiences, or self-identification has become a necessary competency in managerial work (Baron, 2008). Knowing how to successfully manage in diverse business situations will undoubtedly affect both the corporate bottom line and the welfare of employees. Given the changes in both labor force composition and the nature of work, many managers now recognize that there are consequences to how they address issues regarding the diversity in their workforces. These consequences, however, may be positive or negative. While some have argued that diversity improves organizational performance (i.e., the “business case” for diversity), others like (Jost, 2006) has argued that there is little evidence of any direct relationship between diversity and performance. There may, however, be indirect effects of diversity on performance, depending on the moderating influences of organizational culture or context and on the development of skills for effectively managing group process and communication.

Discussion of diversity management invokes different and often hidden assumptions about the purposes or goals of managing diversity in organizations (Friedman, 2006). For some, diversity management is primarily about providing equal opportunity for access and rewards in organizations that otherwise do not change the structure of practices they undertake. An equal opportunity approach to diversity management puts the emphasis on letting others in, while maintaining the status ...