Theme 8
Diversity in organizations
Learning goals:
Vignette 1
▪ What is the importance of having a multicultural policy?
▪ What is the best approach for this policy?
▪ What are the different approaches?
Podsiadlowski et al. (2013). Managing a culturally diverse workforce: Diversity perspectives
in organizations.
The goal was to identify the different ways organizing approach diversity and how those approaches
can be measured in a diversity-sensitive and reliable way. In study 1 they looked at why organization
would be for or against diversity. In study 2 they developed and implemented a standardized
questionnaire to measure the diversity perspectives. They also examined how an organization’s
diversity perspectives are linked with perceived benefits and threats of diversity at group and
organizational level and how diversity management in implemented.
Diversity
Kreitz defined diversity as “any significant difference that distinguished on individual from another”.
Others stated that diversity is “a characteristic of groups of two or more people and typically refers
to demographic differences of one sort or another among group members”. Both social identity and
perceived similarity have consequences for intergroup relations at culturally diverse workplaces.
These can be negative, leading to discrimination, equal employment disparities, stereotyping, and
conflict, but also positive, fostering creativity, innovation, and better problem solving. Employee
diversity can give a business an advantage when dealing with a diverse customer base.
Diversity Strategy
Thomas and Ely distinguished three different perspectives regarding an organization’s approach to
diversity:
1. The discrimination and fairness paradigm.
2. The access and legitimacy paradigm.
3. The learning and effectiveness paradigm.
These paradigms refer to organizational members’ normative beliefs and expectations about the
reason to diversify, the value of diversity, and its connection to work. Dass and Parker added a fourth
perspective, the resistance perspective, where an increase in an outside demand for diversity is
viewed as a threat to the company or not important enough to even discuss. Possible reaction to
diversity are: to include or exclude, to deny, to assimilate, to suppress, to isolate, to tolerate, to build
relationship, and to mutually adapt. Criteria of organizational approach are whether to address or
ignore diversity, whether to view diverse (cultural) background of their employees as a challenge to
deal with or an asset to make use of, and whether to be reactive, defensive, or proactive. Some of the
authors suggested a conceptual framework of five diversity perspectives:
1. Reinforcing homogeneity: to avoid or even reject a diverse workforce. The attraction-
selection-attrition hypothesis suggests that organizations tend to attract, hire, and retain
similar types of people. The tendency to drive out diversity can be implicit or explicit, by using
selection and promotion criteria that are ascribed to the majority etc.
1
,2. Colour-blindness: part of the discrimination-and-fairness perspective. People should be treated
equally no matter where they are from; cultural background does not count and does not need
to be specifically dealt with in personal management.
3. Fairness: part of the discrimination-and-fairness perspective. Together with colour-blindness
this stretches to importance of ensuring equal and fair treatment and avoiding discriminatory
practices.
o Colour-blindness focuses on equal employment opportunities but without acknowledging
potential differences due to different cultural background.
o Fairness ensures equal and fair treatment through addressing the need for specific
support for minority groups, reducing social inequalities.
4. Access: sees diversity as a business strategy that provides access to a diverse customer base and
international markets by internally reflecting an organization’s external environment.
5. Integration and learning: this is broader and suggests that everyone can benefit from a diverse
work environment, the organization as a whole as well as its employees. This is considered most
strategic; change happens through mutual adaptation of minority and majority groups alike.
o Access perspective considers diversity more as a business case by gaining access to diverse
customers and international markets as well as reflecting the demographics of an
organization’s external environment.
o Integration and learning perspective moves beyond business-related demographic reasons
and appreciation. Equal and fair treatment of everyone is stressed because the
organization has moved beyond distinguishing between different groups of people to
acknowledging the unique and specific expertise.
2
, Diversity Management
This has been defined as the sum of organizational practices for managing people to maximize
potential advantages of diversity and as policies for recruiting and retaining talent from different
backgrounds. So far, there has been no standardized measurement approach to analysing diversity
perspectives in organizations due to the lack of theoretical foundation on the organizational level.
Study 1: Diversity Perspectives in Austria
The question was how diversity is perceived in different types of private business and which
patterns of managing cultural diversity can be identified with regard to an organization’s strategy,
structure, and management. With this study the authors hoped to gain deeper, more systematic
insight into organizational approaches and perceptions of diversity in Austria with respect to the
conceptual framework of five potential diversity perspectives.
Method
29 semi-structured, problem-centred interviews were conducted. The guidelines contained the
following: personal background of the interviewee; information about the organization, human
resources, management, and diversity management; and experiences working within a culturally
diverse workforce. To gain a broader knowledge of the Austrian business, they included
organizations that differed in terms of size, sector, industry, and location of headquarters.
Results Study 1
Diversity Perspectives
- The most common perspective was access (13 organization). All those companies operated
internationally, which seems to be a key factors. The second most common perspective was
integration and learning (5 organizations). In these organizations employees in Austria made
use of tools, programs, and international meetings via the Internet.
- Four organizations had a colour-blind perspective. Three organizations exhibited the fairness
perspective. Diversity management in these organizations was closely related to social
responsibility. Perspectives of parent companies and their subsidiaries may not be consistent.
Three organizations showed a reinforcing homogeneity perspective.
Diversity Management
The lack of institutionalized, formal diversity management was striking. Diversity initiatives were
more often episodic than systematic, which a focus on language courses and formalized recruitment
and selection procedures, and covered only a small range of possible management practices.
Diversity strategies also differed along dimension, with gender being more systemically addressed
than ethnic, national, or migration background.
Only three organizations had integrated diversity management into their strategy and had systemic
diversity management programs. Yet it may still be part of daily management practices. They found
evidence of support for specific groups, accommodating migrants’ needs, awareness of potential
intercultural conflicts and the necessity of actively dealing with them, appreciating cultural
differences, valuing diverse perspectives, and encouraging mutual learning.
Contrary to the expectations, having a high share of foreign employees did not necessarily mean that
diversity programs were being implemented. The organization’s share of foreign employees only
influenced its diversity management when combined with a corresponding corporate culture of
being open to cultural differences and appreciating diversity.
Conclusion From Study 1
The study confirms that Austrian diversity management is still in their early stage. Particular
challenges lie in addressing prejudices against specific migrant groups, reducing implicit bias, and
promoting the benefits of diversity, not only in the workplace but also in the public discourse.
Multiple languages and cultural knowledge might be very important.
3
Diversity in organizations
Learning goals:
Vignette 1
▪ What is the importance of having a multicultural policy?
▪ What is the best approach for this policy?
▪ What are the different approaches?
Podsiadlowski et al. (2013). Managing a culturally diverse workforce: Diversity perspectives
in organizations.
The goal was to identify the different ways organizing approach diversity and how those approaches
can be measured in a diversity-sensitive and reliable way. In study 1 they looked at why organization
would be for or against diversity. In study 2 they developed and implemented a standardized
questionnaire to measure the diversity perspectives. They also examined how an organization’s
diversity perspectives are linked with perceived benefits and threats of diversity at group and
organizational level and how diversity management in implemented.
Diversity
Kreitz defined diversity as “any significant difference that distinguished on individual from another”.
Others stated that diversity is “a characteristic of groups of two or more people and typically refers
to demographic differences of one sort or another among group members”. Both social identity and
perceived similarity have consequences for intergroup relations at culturally diverse workplaces.
These can be negative, leading to discrimination, equal employment disparities, stereotyping, and
conflict, but also positive, fostering creativity, innovation, and better problem solving. Employee
diversity can give a business an advantage when dealing with a diverse customer base.
Diversity Strategy
Thomas and Ely distinguished three different perspectives regarding an organization’s approach to
diversity:
1. The discrimination and fairness paradigm.
2. The access and legitimacy paradigm.
3. The learning and effectiveness paradigm.
These paradigms refer to organizational members’ normative beliefs and expectations about the
reason to diversify, the value of diversity, and its connection to work. Dass and Parker added a fourth
perspective, the resistance perspective, where an increase in an outside demand for diversity is
viewed as a threat to the company or not important enough to even discuss. Possible reaction to
diversity are: to include or exclude, to deny, to assimilate, to suppress, to isolate, to tolerate, to build
relationship, and to mutually adapt. Criteria of organizational approach are whether to address or
ignore diversity, whether to view diverse (cultural) background of their employees as a challenge to
deal with or an asset to make use of, and whether to be reactive, defensive, or proactive. Some of the
authors suggested a conceptual framework of five diversity perspectives:
1. Reinforcing homogeneity: to avoid or even reject a diverse workforce. The attraction-
selection-attrition hypothesis suggests that organizations tend to attract, hire, and retain
similar types of people. The tendency to drive out diversity can be implicit or explicit, by using
selection and promotion criteria that are ascribed to the majority etc.
1
,2. Colour-blindness: part of the discrimination-and-fairness perspective. People should be treated
equally no matter where they are from; cultural background does not count and does not need
to be specifically dealt with in personal management.
3. Fairness: part of the discrimination-and-fairness perspective. Together with colour-blindness
this stretches to importance of ensuring equal and fair treatment and avoiding discriminatory
practices.
o Colour-blindness focuses on equal employment opportunities but without acknowledging
potential differences due to different cultural background.
o Fairness ensures equal and fair treatment through addressing the need for specific
support for minority groups, reducing social inequalities.
4. Access: sees diversity as a business strategy that provides access to a diverse customer base and
international markets by internally reflecting an organization’s external environment.
5. Integration and learning: this is broader and suggests that everyone can benefit from a diverse
work environment, the organization as a whole as well as its employees. This is considered most
strategic; change happens through mutual adaptation of minority and majority groups alike.
o Access perspective considers diversity more as a business case by gaining access to diverse
customers and international markets as well as reflecting the demographics of an
organization’s external environment.
o Integration and learning perspective moves beyond business-related demographic reasons
and appreciation. Equal and fair treatment of everyone is stressed because the
organization has moved beyond distinguishing between different groups of people to
acknowledging the unique and specific expertise.
2
, Diversity Management
This has been defined as the sum of organizational practices for managing people to maximize
potential advantages of diversity and as policies for recruiting and retaining talent from different
backgrounds. So far, there has been no standardized measurement approach to analysing diversity
perspectives in organizations due to the lack of theoretical foundation on the organizational level.
Study 1: Diversity Perspectives in Austria
The question was how diversity is perceived in different types of private business and which
patterns of managing cultural diversity can be identified with regard to an organization’s strategy,
structure, and management. With this study the authors hoped to gain deeper, more systematic
insight into organizational approaches and perceptions of diversity in Austria with respect to the
conceptual framework of five potential diversity perspectives.
Method
29 semi-structured, problem-centred interviews were conducted. The guidelines contained the
following: personal background of the interviewee; information about the organization, human
resources, management, and diversity management; and experiences working within a culturally
diverse workforce. To gain a broader knowledge of the Austrian business, they included
organizations that differed in terms of size, sector, industry, and location of headquarters.
Results Study 1
Diversity Perspectives
- The most common perspective was access (13 organization). All those companies operated
internationally, which seems to be a key factors. The second most common perspective was
integration and learning (5 organizations). In these organizations employees in Austria made
use of tools, programs, and international meetings via the Internet.
- Four organizations had a colour-blind perspective. Three organizations exhibited the fairness
perspective. Diversity management in these organizations was closely related to social
responsibility. Perspectives of parent companies and their subsidiaries may not be consistent.
Three organizations showed a reinforcing homogeneity perspective.
Diversity Management
The lack of institutionalized, formal diversity management was striking. Diversity initiatives were
more often episodic than systematic, which a focus on language courses and formalized recruitment
and selection procedures, and covered only a small range of possible management practices.
Diversity strategies also differed along dimension, with gender being more systemically addressed
than ethnic, national, or migration background.
Only three organizations had integrated diversity management into their strategy and had systemic
diversity management programs. Yet it may still be part of daily management practices. They found
evidence of support for specific groups, accommodating migrants’ needs, awareness of potential
intercultural conflicts and the necessity of actively dealing with them, appreciating cultural
differences, valuing diverse perspectives, and encouraging mutual learning.
Contrary to the expectations, having a high share of foreign employees did not necessarily mean that
diversity programs were being implemented. The organization’s share of foreign employees only
influenced its diversity management when combined with a corresponding corporate culture of
being open to cultural differences and appreciating diversity.
Conclusion From Study 1
The study confirms that Austrian diversity management is still in their early stage. Particular
challenges lie in addressing prejudices against specific migrant groups, reducing implicit bias, and
promoting the benefits of diversity, not only in the workplace but also in the public discourse.
Multiple languages and cultural knowledge might be very important.
3
