The issue of diversity is crucial in any organization since it has various positive effects in its performance. It influences the management of the human resources and the development of the company. Following the case study of the Cityside Financial Services, the diversity proved to be extremely beneficial in that it improves the quality of services offered by the company. The Cityside Financial Services is a medium sized company that was located in an urban area occupied by the white upper-middle class people.
The company closed upon the movement of the middle-class people into the suburbs. Later on, it was sold to the more racially diverse group of investors like Ron Wilkins who was a young black investor. This company set up restoring the lost clientele and reinvesting in that area by inviting richer investors countrywide (Zweigenhaft, 2006). Cityside Company had two units in 1999 in the Sales Divisions. One of the units was the Retail Operations that handled the local community personal savings accounts, home and real estate mortgages and small-business loans. The External Deposits handled all other investors in giving collection of money market accounts, IRAs, and CDs.
After a while, Wilkins realized a difference in the gender balance of their company in the previous one. This is because the new company had attracted female clients and staff unlike the initial one that was biased. Wilkins had noticed that a diverse staff attracts more local customers and distracts them from other competing financial institutions in the city. Therefore, he persuaded other bank managers to employ a fast-growing minority employing plan. The company employed raised the number of female employees by half, 25% African executives, 42% senior managers and 53% middle managers. Its subordinate staff was 90% African-American.
The Retail Operations employed mostly black people while the External Deposits employed white people mostly the middle class and college graduates. Moreover, the black and white employees got equal managerial positions. The different races in both units appealed to respective clientele. The company realized that if had employed purely white people, it would be disadvantaged in a way. It also discovered the importance of having a staff that can have a healthy relationship with the people around since it makes the company function well. Consequently, the company's reputation improved. It was rated as the best performing multicultural company in the city.
However, the company discovered that the long-term clients were complaining poor services that they were being given compared to other customers; that they were not receiving some of the services that the company was offering (Dowding, 2011). Upon investigating, Wilkins realized that they had been classified as the locals. Hence, they were the company's main target as the wealthier customers. Thus, the customers were leaving the company for other competing companies.
Moreover, lack of coordination between the company's units yielded to negative results of the company (Daft, 2009). The bank became inefficient hence distracting the customers.
Consequently, the company recorded losses hence ruining its reputation. Wilkins found it imperative to find solutions to the problem. He embarked on mixing up the employees in the two units especially by using promotions. As a result, cases of racism declined in the company hence better performance. There are certain ways in which diversity can affect the human capital and development in an organization. It has been established that not only the level of the human capital that is essential in an organization but also its constitution regarding the companions and the cooperators. A company that emphasizes on the whole workforce instead of a section boosts the company's performance (Aleksy-Szucsich, 2007).
Moreover, some researchers like Richard (2000) have found that some degree of racial diversity is beneficial to an organization. There is also educational diversity that also affects the performance of the company. This is because the kind of education given to the people improves the human resources performance which in turn boosts the company's quality. Education also raises the company's development and GDP (Dronamraju, 2008).
There is a varied diversity according to the different countries. These variations could be on gender, race, education, abilities and age among other factors. Like in the Cityside financial, diversity was based on gender, race and the economic status. Before being sold to Wilkins and other partners, the company had had more male workers than the female workers. This arrangement had a negative impact on the company's performance since most of the customers were male. The female clients were not attracted. Later on, diversity on the gender of the employees attracted more female clients hence improving the quality of the company.
Moreover, racial diversity is equally valuable in the company. Discrimination of the workers can negatively affect the company's operations in that the employees will lose confidence in their work. Racism also influences the promotions done in the company hence making the overlooked group feel unappreciated (Blanc, 2010). This also affects the customer population in the company. The race of the workers can attract more customers or scare them away. This is because clients need people whom they can comfortably approach. For example a black client will not comfortably approach a black employee since they can identify with each other. In addition, there is a likelihood of an organization to be biased in their services. For example, the Cityside Financial Services had its long-term clientele complain that they were not getting better services as the other customers. The company had investment opportunities which were only given to some customers hence making this group feel looked down upon.
Consequently, the company experienced a significant loss of customers to other competing companies in the city. When Wilkins approached the employees, he realized that there was unbalanced allocation of offices in the company. The management mostly comprised of the whites and that had a negative impact on the organization's operations. However, when the company diversified its human resources, it recorded a lot of benefits. The number of customers increased hence the company's reputation was raised. Diversity also improves the development of a company. Since more customers are attracted, the company realizes many profits. Therefore, it is capable of opening more branches and other businesses due to an increased GPD.
However, there are various limitations that are brought about by diversity. These issues can have negative effects on the company's hiring, development and the management processes. First, diversity can pose certain challenges on the recruitment of the employees. Diversity can result in an organization losing the most qualified personnel in the process. There are two reasons as to why a company can lose the job applicant (Baugh et al., 2006). One of them is that the company can underestimate the job applicant's capability hence disqualifying him or her. This could happen due to prejudice or cultural misunderstandings. Moreover, lack of the right interviewing skills by the interviewer can also lead to the loss of the able workforce.
Another reason for the loss of the competent applicants is the applicant's low opinion on the organization. A job applicant might conclude that the organization is incapable of offering them the right experience since it is not highly rated. It could also be that the applicant finds the environment not conducive for them to work, may be due to the poor terms and conditions. Therefore, the applicant will disqualify the employer. Furthermore, there is a challenge posed by recruiting workers based on their color. The challenge is pronounced in the professional positions. Research shows that the educated minority is remarkably selective on the companies. Most of them look for comfort, better terms and conditions in companies (Greene et al., 2010). For example, applicants prefer working in organizations that pay well and are more lenient on the workers. On the other hand, skilled people avoid organizations that are too strict on their employees and those that pay poorly.
In order to overcome this challenge, the company should strive to attain outstanding reputation so as to attract many competent applicants instead of having the applicants sell themselves to the companies. Moreover, it is imperative that the interviewers attain better interviewing skills so as to attract the potential applicants for the job (Phillips et al., 2008). The interviewers should form a picture of a team-oriented group, a nurturing and developing environment in the interviewee's mind. They should also have exceptional communications skills and knowledge on the cultural settings of the interviewees.
The pictures and other things in the working environment affect the job applicant's attitude on the company. For example, putting up pictures of people of mixed races indicates that a company is nonracial and vice versa. Consequently, business organizations should be careful on such stuff so as to attract competent applicants.
This will erase the issues of prejudice in their minds hence attracting them. Showing them around can also help in the retention of the successful job applicants. Therefore, companies should strategically plan their recruitment processes by ensuring that the interviewers are well acquainted to the diverse cultures (Cohen et al., 2005). In turn, this will reduce the loss of the competent applicants. Moreover, recruitment based on diversity can lead to a company employing the incompetent applicants rather than the competent ones. For example, if an organization wishes to balance the gender of its staff, it can end up employing a certain gender at the expense of the competent gender. Therefore, a company will be bowing to the political forces if it recruits its workers by basing on the gender or ethnicity. This way, it will lose the best applicants.
In addition, the location of the company is another challenge on diversity. Most companies located far away from the cities are forced to employ people without adhering to diversity because of the limited choice (Brief, 2008). Consequently, they violate the Human Rights by failing to obey the diversity protocol. Therefore, it is crucial that the available job vacancies in an organization be occupied by the best applicant rather than the candidate possessing the cultural or gender requirements.
One of the ethical issues related to diversity is the importance of the human relations manager to consider the effects of the company's decisions on both the business and the employees. Every decision made should not compromise the workers' welfare (Collins, 2009). It should also be able to help the company achieve it target goals. The commands given to the employees should not be exploitative. They should not affect the employees' motivation to perform and that their security is compromised.
Legally, the employees have their rights and duties. There should not be discrimination of any member of staff in the company. Moreover, employees have a right to participation, healthy and safe working environment, to right remuneration, privacy and job satisfaction (Peters, 2008). They also have a duty to adhere to the labor contract. In relation to the Cityside Financial Services, there is diversity implementation protocol that should be followed by every company. On the other hand, diversity has poses certain challenges on the management of an organization. Management diversity involves differences in the managers' abilities, ethnicity, race, age, culture, values, sexual orientation, religious beliefs, educational levels and marital status among others. Due to the availability of diversity, it is imperative that the Human Resource Management carefully handle these challenges effectively. One of the challenges posed by diversity is the difference in the languages spoken by the staff. This might lead misunderstanding of one another.
Another challenge is the workers resistance to cooperate with others from other ethnic, racial or cultural backgrounds. Subsequently, the company loses its efficiency (Sidanius, 2008). Diversity can also result in discrimination of the other employees due to the variation of the accents, ethnicity or race. Hence, the company's performance will reduce due to lack of cooperation among the employees. A section of the staff will feel unappreciated hence poor performance.
Moreover, diversity makes the employees experience prejudice in the way they are treated. This could happen through promotions, performance appraisals, compensations or rewards. The management can promote or reward its employers by on focusing on a certain race. Therefore, the others will feel insignificant in the organization. Another challenge brought about by diversity on the management is resistance to change. Some employees have affixed mindset on how the company operates. Therefore, they find it hard to accept the changes that are happening in the organization; the social and the cultural composition of the company. This resistance to change inhibits progress in a company (Smit, 2007). The implementation of diversity in the company's policies is another challenge to the human resource management.
Diversity also poses a challenge on the development of an organization. Diversity is extraordinarily costly in that it requires restructuring of the company. Employing a diverse group is extremely expensive hence bringing down the development of the company. As a human resource manager, I can address the above issues in the following ways. Firstly, I will conduct an assessment and evaluation of the company's diversity. This will help the management in identifying the challenges and hindrances to diversity. The company will also determine the policies that need to be done away with and those that should be implemented. Secondly, I will develop diversity in the company by selecting a study provider that provides complete reporting. I will set a strategy that is measurable and attainable to the company. I will also that the management incorporates the policies in the organization's operations. I will also instill positive attitudes on diversity by creating a diverse cultural environment (Greene et al., 2010).
Another way of handling these challenges is by changing the managers' and other employees' mindset on the company. They should acknowledge change is paramount and that their way of operating the company is not the best. Therefore, it is imperative that they embrace diversity. Another strategy that I will employ in such a situation is to organize a monitoring program. This requires the involvement of various departmental managers training and reporting on the employees' progress. Seeking assistance from other experts is also paramount in the monitoring program. The initiative will also entail taking the workers' views on diversity and persuading them to think beyond their cultural framework. Employment of talents strategically is another way to deal with the challenges brought about by diversity. This organization of different talents requires the consideration of their ability to help the company achieve so that it can fully attain diversity in a workplace.
The human resource manager can lead by example as this is pertinent in handling these challenges. As a human resource manager, I will talk to the company staff on the significance of diversity. Most importantly, I will ensure that I respect any issue on diversity and advocate for clear and positive reactions to them. In addition, I will have to be truly committed to employing diversity in the company and should be determined to handle these challenges ethically and responsibly.
It is also notable that I organize frequent evaluation on the salaries, benefits, promotions, management, and work environment. This will ensure that the company progresses in its operations. It is also beneficial to have certain devices for measuring the benefits of the mentoring programs and other initiatives.
Workplace motivational approaches are extremely valuable in solving most of the challenges of diversity in an organization .This is the driving force that makes the workers attain their goals. Therefore, I will ensure that the employees' needs are met so as to enable them perform their duties well. These needs are different from one worker to another hence, and it is necessary that the company employs the right strategies in meeting them. Motivation of the employees is essential in that the company will realize a lot profits since they work effectively. One of the motivational factors is by rewarding the best performing workers. This will motivate the workers towards offering quality services since they are comfortable and satisfied because of the rewards. In order to avoid the issue of losing the best candidates for the job, I will ensure that the company sells itself by attaining high standards. The interviewers also need to be trained on how to, effectively, go through an interview so as attract the candidates rather than scare them. I will work hard to ensure that the job applicants develop positive attitudes towards the company and find it the best workplace.
Evidently, diversity plays an essential role in an organization given that it brings with it many benefits. However, it has various limitations that should be carefully addressed so that a company can reap its full benefits. Therefore, the human resource managers should ensure that the employees working in conducive working environment. They should also ensure that there is personal and professional growth as well as attracting diverse talents among the workers. The managers should also empower their staff to attain the optimum abilities and minimize conflicts and hindrances to the efficiency of their organization.