WORKFORCE DIVERSITY AND DIVERSITY

MANAGEMENT

A Seminar Paper
By
Aakriti Kumari Jha
Symbol no: 11839/23
TU registration no.: 7-2-3-239-2023

Second Semester, Bachelor of Business Management (BBM)

Mahendra Morang Adarsha Multiple Campus, Tribhuvan University
Leadership and Organizational Behavior: Seminar on “Workforce Diversity and Diversity Management”

Submitted to:

Office of Dean, Faculty of management

Bachelor of Business Management (BBM)
Mahendra Morang Adarsha Multiple Campus, Tribhuvan University

Dec-2024
 DECLARATION

I hereby declare that this seminar entitled “workforce diversity and Diversity management "

submitted to the Tribhuvan University is a record of original work done by me under the

guidance of Mrs. Laxmi Khawas Faculty member, (Mahendra Morang Adarsha Multiple

Campus), and this project is submitted in the partial fulfillment of the requirement for the

award of Bachelor of Business Management (BBM). This seminar work has not been

submitted to any other university for the award of any degree.

Signature

Aakriti Kumari Jha

Dec 2024

ii
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the seminar project “Aakriti Kumari Jha” entitled “Workforce Diversity

and Diversity Management” an academic work done by submitted in the requirement for

Bachelor of Business Management (BBM) at faculty of management, Tribhuvan University

under my guidance and supervision. To the best of my knowledge the information presented

by her in the seminar project report has not been submitted earlier.

Indra Narayan deo

(Program Coordinator)

iii
 CERTIFICATE OF APPROVAL

This is to certify that this seminar prepared by “Aakriti Kumari Jha” entitled “Workforce

Diversity and Diversity Management” in the partial fulfilment of the requirement for the

degree of Bachelor of Business Management (BBM) has been well studied. In my

opinion it is satisfactory in the scope and quality as a seminar project for the required

degree.

Mrs. Laxmi Khawas

External

iv
Examiner

ENDORSEMENT

I hereby endorse the seminar report entitled "Workforce Diversity and Diversity

Management" submitted by Aakriti Kumari Jha of Mahendra Morang Adarsha Multiple

Campus, Biratnagar in partial fulfillment of the requirements for the Bachelor of Business

Management (BBM) for external evaluation.

Signature

Mrs. Laxmi Khawas

Mahendra Morang Adarsha Multiple Campus

Morang, Biratnaga

v
 ACKNOWLEDGEMENT

This seminar report entitled “Workforce Diversity and Diversity Management” has

been prepared in partial fulfilment for the course of seminar writing under the

supervision of Mrs. Laxmi Khawas of MAHENDRA MORANG ADARSHA

MUITIPLE CAMPUS, MORANG.

It is my privilege of getting help and cooperation from different persons. I’m deeply

indebted and also express my heartfelt gratitude to all who supported me. I sincerely

thank to Mahendra Morang Adarsha Multiple campus for providing me chance to

pursue BBM. I would like to offer my special thanks to Mrs. Laxmi Khawas for her

proper supervision and suggestion for shaping this work to completion. I am also

thankful to Dr. Prof. Baburam Timilsina, Campus Chief of Mahendra Morang

Adarsha Multiple Campus.

I couldn’t remain without thanking to my teachers’ lecturers and my friends who all

helped me during my study of BBM and dining my preparation of this seminar report.

Despite my efforts to bring up a flawless report some errors might have crept in an I

am hereby grateful to anyone who would bring such errors to light with some positive

feedbacks.

Thank you

Vi
 TABLE OF CONTENT

1. INTRODUCTION........................................................................................................1

1.1 Background of the study...................................................................................................................2

1.2 Statement of Problem:.......................................................................................................................5

1.3 Objectives of the Study:...................................................................................................................6

1.4 Significance Of The Study:...............................................................................................................7

1.5 Purpose Of The Study:......................................................................................................................8

2.0 METHODOLOGY OF THE STUDY............................................................................9

2.1 Research Design.................................................................................................................................9

2.2 Sources of Information......................................................................................................................9

2.3 Method of Information Analysis......................................................................................................9

3.0 DIMENSION OF WORKFORCE DIVERSITY........................................................10

4.0 OBSERVATION AND FINDING................................................................................12

4.1 Observation:.....................................................................................................................................12

4.2 Findings:...........................................................................................................................................12

5.0 CHALLENGES OF WORKFORCE DIVERSITY..................................................14

6.0 CONCLUSION:............................................................................................................15

Vii
 ABSTRACT

Workforce diversity means similarities and differences among employees in terms of age,

cultural background. physical abilities and disabilities, race, religion, gender, and sexual

orientation. No two humans are alike People are different in not only gender, culture, race,

social and psychological characteristics but also in their perspectives and prejudices. Society

had discriminated on these aspects for centuries. Diversity makes the workforce

heterogeneous. In current scenario, employing diversified workforce is a necessity for every

organization but to manage such diversified workforce is also a big challenge for

management. This paper critically analyses the workforce diversity and its impact on

productivity of an organization. The researcher after examining the literature and various

research papers, concluded that workforce diversity is strength for any organization but

people still stick to their views related to caste, religion and so consider diversity as a

problem but if managed properly, can increase the productivity.

Key words: gender, race, religion, physical abilities and disabilities, workforce diversity.

Viii
1. INTRODUCTION

Workforce diversity is the bringing together of a variety of people to one workplace.

This workplace would be comprised of people with a wide range of experiences,

backgrounds and characteristics. Those key characteristics that make workforce

diversity include: race, ethnicity, gender, religion, age, ability and sexual orientation.

Why is this important to your business? Companies that embrace workforce diversity

are growing and can become more competitive, but with that workforce diversity also

brings its own issues and challenges. It may be time for your business to get on

board.

To be successful at creating workforce diversity program involves attracting and

retaining the highest quality individuals in the talent pool. For HR professionals it

means looking beyond obvious recruitment methods and venues for good people,

then learning how to manage human potential sensitively. It requires an ever-

increasing awareness of how people from different background deal with authority,

communication, overall business etiquette, and relate to their communities of

affiliation.

Promoting workforce diversity is a process that takes place in many stages and on

many levels. It requires HR professionals first to recruit a competent and qualified

staff, then to accommodate individuals need within the context of the work team and

the organization.
 1.1 Background of the study

With increasing globalization and migration, managing diversity in organizations is

becoming more and more important. There is wide agreement on the need to actively deal

with diversity in organizations and to identify advantage and disadvantages for various

agents involved (Dietz and Petersen, 2006, kochanet at. 2003, MCkay et al, 2009).

Diversity is a well-known and well-researched concept in the United State as well as in

Europe. There are case studies on diversity paradigms (e.g.. Thomas and Ely, 1996), but

we are missing a comprehensive tool to measured strategic approaches to dealing with

diversity. Further, little research has been done linking personal and organizational

context factors to an organization's approach to diversity with regard to workforce

composition, diversity perspective and management. Our goal was to identify the

different ways organizations approach diversity and how those approaches can be

measured in a diversity-sensitive and reliable way. We developed a framework for

understanding the management of diversity, extending and differentiating the concepts of

Dass and parker (1999) and Ely and Thomas (2001). We identified five diversity

perspectives that explain the underlying motivations and consequences of organizations

approaches to diversity. In two studies, we analyzed these different diversity perspectives.

In study 1, we looked at why organizations would be for or against diversity. In study 2,

we developed and implemented a standardized questionnaire to measure the diversity

perspectives are linked with perceived benefits and threats of diversity at group and

organizational level and how diversity management is implemented. International journal

of intercultural relations 37(2), 159-175, 2013. Workforce diversity is a primary concern

for most of the businesses. Today's organizations need to recognize and manage
workforce diversity effectively. Many articles have been written on this topic but there is

no specific definition of workforce diversity. The main purpose of this article is to review

the literature of workforce diversity. What is workforce diversity? What are benefits of

workforce diversity in organizations? What management can do to enhance work force

diversity in organization? What are the disadvantages of workforce diversity? This

questions, would be main purpose of this article. Key words: workforce diversity,

disabilities, old age, human resource management, equal opportunity. African journal of

business management 1(4), 2007. The issue of constructively addressing the diversity of

differences reflected by today's workforce, in factors such as race, ethnicity, culture,

gender and age, is being pursued by organization throughout the world. At the same time,

both human research management advocates and bottom-line managers are emphasizing

the need to improve the quality and time lines of work. Proper management of workforce

diversity will result in better products delivered in a mor timely manner because the assets

of employees will be more fully utilized. Effective management of diversity will also

improve morale and jobs satisfaction while increasing the number of employees who

reach their full performance potential. This means that the end results are positive benefits

to employees and the organization. In fact, organization will be dealing with diversity

sooner or later-it is just a matter of time. In the United States, for e.g. people of color

continue to increase their proportion of the workforce. In many developed countries the

percentage of women in the workforce is increasing. For developing countries, a key

aspect of economic improvement is the increased involvement of women in all aspects of

the workforce (OECD, 1989). But how does an organization effectively cope with the

diversity issue? This question will be addressed after a brief review of what managing

diversity is and is not. Management Education and Development 21 (4), 321-326, 1990.

Managing diversity, multiculturalism. affirmative action and equal employment

opportunity are words in common currency in a newly democratic South Africa as they

are in most democratic countries of the world. However, in South Africa, as elsewhere in

the world, these concepts are frequently confused, often misunderstood and, in some

instances, form the theoretical backdrop to practical programs of dubious efficacy at best

and which may be counterproductive at worst. Distinguishes between these concepts.

Concentrates on managing diversity and how this process is often hampered by an

overemphasis on "national culture" at the expense of broader individual identity and

power relations. Analyses how power relations impact on perceptions of "culture," and

ultimately on the motivation, performance and development "historically disadvantaged"

employees. Describes how this framework of understanding has informed the

development of a managing diversity skills training workshop which has been run

successfully in corporate and not-for-profit organizations alike International journal of

manpower, 1996. Workforce diversity is a complex phenomenon to manage in an

organization. The management of workforce diversity as a tool to increase organizational

effectiveness cannot be underscored, especially with current changes sweeping across the

globe. It is argued that organizations that value diversity will definitely cultivate success

and have a future in this dynamic global labor market (Jain and Verma, 1996). Workforce

diversity management has become an important issue for both governments and private

organizations. Its importance has mainly been brought about by the free movement of

labor due to globalization and the fight for human rights by certain minority groups who

feel excluded from the employment sector. The workforce diversity emerged mainly to

further the availability equal opportunity's philosophy is aimed at ensuring that

organizations make the most out of the difference from a diverse workforce rather than

losing talent which might assist the organization to be more efficient and effective. The

increased mobility and interaction of people from diverse backgrounds as a result of

improved economic and political systems and the recognition of human rights by a nation

has put most organizations under presser to embrace diversity at the work place. Diversity

brings with it the heterogeneity that needs to be nurtured, cultivated and appreciated as

means of increasing organizational effectiveness in this competitive world. The subject of

workforce diversity has not been a major problem in Africa before as much as it is today.

The concept of diversity management gained attention with globalization and the need for

more organization to spread globally to reach customers across the world. There is an

increasing need to understand more about workforce diversity, which is deeper than what

we see at the surface.

1.2 Statement of Problem:

Many people feel threatened by working with people of a different age, sex, or culture.

First, there is an increase in the cost of training. This increase comes from cost associate

with seminars, programs and lectures given 8 personalities and ideas are thoughts of

others. These programs also teach one how to deal with conflicts and prejudice in a

professional and civil manner (White, 1999). A disadvantage of diversity in the

workplace is an increase in conflict. Conflicts arise when two or more individuals or

groups do not see eye to eye on a particular situation. In regard to diversity, conflicts arise

largely due to ignorance. Prejudice feelings or derogatory comments cause a lack of

acceptance. This can produce negative dynamics such as ethnocentrism, stereotyping and

cultural clashes (white, 1999) The most common conflict comes from one feeling

superior. If management ignores such conflicts, the company's performance may suffer

(White, 1999). If conflicts can be managed and controlled creativity and performance can

be increased. Employers will work harder to gain acceptance by creating a solution or

invention first. This can be the case when managers reconcile competing goals, promote
in representative manner, stand behind the minority group member, and at when resources

are plentiful and cultural differences are low or well understood (White, 1999). Conflicts

always arise wherever they are human beings but they should be managed properly for

the benefit of the organization. Increases in labor in turnover and absenteeism are other

disadvantages in having a diverse workplace. Research has shown that the turnover rate

for African, Americans in the US workforce is 40% greater than Whites. Another study

by Corning Glass Stated that between the years 1980-1987, the turnover rate for women

in a professional job was two times higher than males. Women also have a 58% higher

absentee rate than men. Yet, another study shows that a person, who is not a member of

the "inner group", will be one the first to leave a company (White 1999). Some research

contradicts the idea that flextime reduces these rates; however absenteeism and turnover

can cost a company up to and over$3 million annually (White, 1999). Workforce

diversity, increases labor turnover and absenteeism in organization. Mismanaged

diversity can have long-reaching effects on employee satisfaction and productivity.

Employees who perceive themselves as valued members of their organization are harder

working, involved, and innovative. Unfortunately, minority-group members often feel

less valued than do majority-group members due to stereotyping, ethnocentrism, and

prejudice. Mismanagement of diversity in the form of denied access or unfavorable

treatment can have negative consequences, such as inhibiting workers abilities and

motivation. This leads as lower job performance.

1.3 Objectives of the Study:

To identify an organizations diversity perspective.

· To focus either on discriminatory practices or on the effects on the consequences

of diversity on organization criteria for our validation.

· To identify limitations in previous research and unresolved issues that could drive

future research in this field.

· To determine whether workforce diversity has a positive influence on customer

related issues.

· To identify limitations in previous research and unresolved issues that could drive

future research in this field.

· To synthesize the existing diverse literature on workforce diversity and to

enlighten the avenues for future research in managing workforce diversity.

1.4 Significance Of The Study:

The most important aspect of this study is based on understanding the workforce

and the diversity a business organization possess in terms of their employees. Our

Nation is made up of people from diverse backgrounds, cultures, customs and beliefs.

It is those differences that contribute to the richness and strength of our society. Like

our Nation, workforce is also becoming more and more diverse. As a result, in order

to recruit, hire and retain the best people from every background and community, we

must foster diversity in our workforce, manage it effectively, and value what it has to

offer. A diverse workforce is critical for any organization that seeks to improve and

maintain a competitive advantage. Focusing on diversity and looking for ways to

achieve an inclusive environment is not just a "nice to have objective," it makes a

good business sense. A diverse workforce offers greater productivity and a

competitive edge. Diversity improves the quality of our workforce and offers a higher

return on our investment in human capital. Our agency's future depends on the quality

of employees we recruit today. New employees often consider an organization's

diversity efforts when deciding whether to accept or reject an employment offer.

Potential candidates are usually more attracted to employers that are committed to

sustaining a diverse workforce. Moreover, diverse perspectives increase creativity as

they offer different perspectives, ideas and solutions.

1.5 Purpose Of The Study:

The main purpose of this study is to understand the diversity in workforce in the

organization and what measures could be taken to overcome these diversities in

terms of age, gender, education, culture and psychology.

 2.0 METHODOLOGY OF THE STUDY

2.1 Research Design

This report is based on research. A research design is a strategy for answering

your research question using empirical data. Creating a research design means

making decision about: Your overall aims and approach. It is also called blue pint

of scientific study.

2.2 Sources of Information

Information can be gathered from two places: internal and external sources. The

information collected from internal sources is called "primary information," while

the information gathered from the outside reference is called "secondary data". In

secondary method we collect data by visiting website and journal, books, articles

and magazines.

2.3 Method of Information Analysis

The process of information, involves gathering all the information, processing it,

exploring the information, and using to find patterns and other insights. All

information is entered in computer software like MS word for report preparing.

 3.0 DIMENSION OF WORKFORCE DIVERSITY

Dimensions of workforce diversity are described below:

· Age:

People belonging to different age groups cause diversity in workforce. Young

people may be enriched with health, merit, capacity for hard-work etc.; while elderly

people may possess more maturity than their junior counterparts and are full of

experiences of life.

· Gender:

Male workers are usually aggressive, bold and materialistic; while female workers

possess sympathy for others and are more concerned with quality of life. What is

important to observe is that people of both sex have material differences in outlook,

nature, habits etc.; as differences between males and females are the design of God

who created mankind.

· Education:

In an organization people may range from less educated to highly educated. Educated

people have a broad outlook and are open-minded. They are endowed with logic and

rationality and usually dislike discrimination among individuals on petty grounds of

 caste, colour, religion etc.

· Culture:

Culture is a complex of race, religion, language, social traditions and values etc.

People from different cultural backgrounds may have ethnic orientations i.e. a sense

of favouritism towards their nation, race or tribe, which they belong to.

· Psychology:

Psychology is the kind of mind that one has that makes one think or behaves in a

particular way). In a organization, there are people with different psychology. Some

may be optimistic or pessimistic; some may be bold or timid or so on. Psychology

may be a gift of Nature or a manifestation of family background or social affiliations.

 4.0 OBSERVATION AND FINDING

4.1 Observation:
Research has made certain observation and is mentioned below:

· It is observed that an organization is composed of different groups of people

belonging to different age, gender, education background.

· The conflict between diverse workforce can be managed by mentorship

program, communication plan, open door policy etc.

· Diversity in an organization is significant to the organization as well as to the

employees.

· The techniques and benefits workforce diversity possess can lead business

towards growth and profit.

When different groups of people who belongs to different culture, age and

education background can result into creative work.

4.2 Findings:

· From the above study it is found that increasing workforce diversity has a

number of benefits including: creativity, innovation, positive reputation and

more.

· With the many positives come some disadvantages including communication

barriers, resistance to change and negative attitudes.

· To avoid conflict from different culture groups an organization must update

policies to accommodate different cultural perspectives.

· Workforce diversity helps business to deal with diverse market.

· It helps in better decision making and maintaining human relations.

· Workforce diversity management leads to increase in goodwill of the firm.

 5.0 CHALLENGES OF WORKFORCE
DIVERSITY

As you begin to implement diversity and inclusion initiatives, it's important to

understand the potential challenges that may arise. Diversity management can be a

tricky process, especially if you're not prepared for pushback from employees or other

stakeholders.

For example:

· Employees may feel like they are being forced into something they don't want to

do.

· Managers might feel threatened by changes in their roles or responsibilities as a

result of new policies (e.g., hiring quotas).

· The organization may experience resistance from customers who prefer dealing

with people who look like them or have shared cultural experiences with them

(e.g., white males).

 6.0 CONCLUSION:

The extent to which managers recognize diversity and it. Potential advantages and

disadvantages defines an organization's approach to managing the diversity (Adler,

1997). No organization in this world of globalization would survive without

workforce diversity. It is the duty of the management to critically evaluate the benefits

of workforce diversity in their organization. On the other hand the management

should put in place conditions which would enhance the workforce diversity in their

organizations, more especially in their strategies formulation on the diversity of the

workforce. Hence, with the diversity of the workforce. the organizations would be

internally and externally competitive. Although, the process of diversification of

organization has six stages: denial; recognition; acceptance; appreciation; valuing;

and utilization (porrars, 1991). It is believed that organizations should put in place of

strategies to enhance workforce diversity. In terms of organizational learning,

organizations are still stuck to the problem of getting people to value diversity and

have not yet determines ways to utilize and exploit it (Porras, 1991). It is the approach

to diversity, not the diversity itself which determines the actual positive and negative

outcomes (Adler, 1991). Managing diversity in organizations is absolutely dependent

upon the acceptance of some primary objectives to which employees are willing to

commit, such as the survival of the firm (Gentile, 1994). In today's fast-paced work

environment a successful organization is one where diversity is the norm and not the
exception (Lawrence, 2001).