Diversity of Human Resources and Development in the Organization

Abstract

Effective management of people is crucial for the success of any organization. It is important to consider the factors that affect employees’ behavior at work; individual differences and characteristics play a significant role in this. Organizations often assume that everyone is the same and will behave rationally in the face of change. However, people’s behavior differs due to variations in personal characteristics, background, and the environment in which they were brought up. In addition, there are differences in ability, intelligence, personality, and other factors. The failure to embrace diversity effectively can adversely affect both employees and customers. Therefore, companies must concentrate on holistic strategies to address broader human resource issues and value-diverse employees. Customers are “partial” employees of service organizations and play a significant role in service production. Thus, managing both full-time and “partial” employees (i.e., customers) is essential using diverse managerial strategies.

1. Introduction

Human resource diversity in an organization is similar to having a toolbox with a variety of tools. Just as a toolbox contains different tools that serve a unique purpose, a diverse workforce brings a variety of perspectives, experiences, and skills to the table. In the same way that a toolbox filled with only hammers limits the range of tasks that can be accomplished, a homogeneous workforce limits the range of ideas and approaches that can be applied to solve problems and drive innovation Diversity, equity, and inclusion are not just about appearance or group affiliation. Even employees from similar groups can have different perspectives based on their career experience, personal background, stage of life, role in the business, and other factor [1]. Through embracing diversity, organizations can tap into a wider range of perspectives and experiences, enabling them to approach challenges from multiple angles and find more effective solutions [2].

Human resource management is a critical function of an organization that involves managing employees to achieve their goals and objectives. This includes various activities, such as recruitment, selection, training, development, performance management, and human resource diversity [3]. The prime neutral of these activities is ensuring that an organization’s staff can efficiently and effectively achieve its targets and objectives efficiently and effectively in human resource diversity [4].

Human resource management diversity plays a crucial role in creating a positive work environment and culture. This in turn promotes employee engagement, motivation, and job satisfaction. Organizations can attract and retain top talent by prioritizing diversity, which is essential for long-term success in today’s competitive business environment [5]. Human diversity plays a vital role in the growth of an organization by selecting suitable personnel, enhancing their skills, fostering a favorable workplace, promoting communication, and ensuring adherence to legal regulations. Harnessing human resource diversity in the workplace is crucial to organizational growth and development, especially in the twenty-first century when organizations face significant challenges in the global market [5]. It is imperative for human resource managers to take appropriate measures to ensure that individual workers’ potential is synergized towards the achievement of the organization’s goals. Diversity is broader than ethnicity, race, or gender. It encompasses other human qualities that are different from our own and those outside the groups to which we belong yet are present in other individuals and groups.

Managing diversity is not an easy task and requires effort from all management team members. Special programs such as orientation, building relationships, and fostering mutual adaptation are necessary steps towards organizational development [6]. Human resource diversity in the workplace is crucial to creating a positive and inclusive work environment. By promoting diversity, companies can benefit from a wider range of perspectives, experiences, and ideas, leading to increased employee engagement and commitment. This also refers to the inclusion of individuals from different backgrounds, cultures, ages, genders, races, and abilities in an organization’s workforce. The benefits of a diverse workforce include increased creativity, innovation, and productivity.

Finally, promoting diversity can help to reduce discrimination and bias in the workplace, which can improve employee morale and productivity. It is important for companies to have policies and practices that support diversity and inclusion, such as equal employment opportunities for all employees, anti-discrimination policies, and training programs to promote cultural awareness and sensitivity. When organizations promote and manage human resource diversity, they can make their workplaces more inclusive and welcoming, which will improve employee satisfaction, retention, and productivity.

2. Workplace diversity and individual differences conceptualized

Diversity and inclusion in the workplace are crucial for creating a positive work environment and culture that fosters employee engagement, motivation, and job satisfaction. By embracing diversity and inclusion, organizations can create a more welcoming and supportive work environment that values and respects all employees, regardless of their background, gender, race, or ethnicity [7]. Studies have shown that a diverse workforce can bring a wide range of perspectives and ideas to the table, leading to innovative and creative solutions to business challenges. Additionally, a diverse workforce can help an organization better understand and serve its customers, who come from all walks of life. Moreover, promoting diversity and inclusion in the workplace can help organizations attract and retain top talent. Employees want to work for companies that value and respect their unique perspectives and background. By fostering a diverse and inclusive work environment, organizations can attract the best and brightest candidates, and retain their top-performing employees. In summary, diversity in human resource management is a critical aspect of creating a positive work environment and culture that promotes employee engagement, motivation, and job satisfaction. Organizations that embrace diversity and inclusion are more likely to attract and retain top talent and achieve long-term success in today’s competitive business environment.

3. Human resource diversity in an organization is influenced by a number of factors

3.1 Stereotyping

This is a cognitive process of categorizing people into groups based on preconceived notions and assumptions about their traits and characteristics. This is a common problem in human resource diversity, as it can lead to discrimination, bias, and a lack of inclusivity in the workplace [8]. When stereotypes are applied to diverse groups, they can create barriers to equal opportunities and hinder a company’s efforts to create diverse and inclusive workplaces. For example, stereotyping women as less capable leaders may lead to fewer hired or promoted female managers. Similarly, if all people of a particular race or ethnicity have similar backgrounds or characteristics, they can lead to biased hiring and promotion decisions. It is important for human resource professionals to be aware of the potential for stereotypes to impact their decision-making and take steps to mitigate this. This can include implementing diversity and inclusion training, encouraging open communication and feedback, and actively seeking diverse candidates and perspectives in the hiring process. By actively combating stereotypes, companies can create more inclusive and equitable workplaces for all employees [9].

3.2 Halo effect

A cognitive bias in which our overall impression of a person or group of people influences our judgments of their specific traits or characteristics. This is particularly relevant in the context of human resource (HR) diversity. In the context of HR diversity, the halo effect might occur when we make assumptions about an individual’s skills, abilities, or potential based on demographic characteristics, such as race, gender, or ethnicity [10]. For example, if an organization seeks to increase its diversity and hires a woman or person of color for a leadership role, there may be a tendency to assume that an individual possesses a range of positive qualities, such as being more empathetic or better at communication, simply because of their demographic group. However, such assumptions are often unfounded and can lead to unfair and inaccurate evaluations. Rather than possessing certain traits due to their demographic group, it is important to evaluate them based on their individual skills, experience, and performance. To avoid the halo effect in HR diversity, it is crucial to create objective evaluation criteria based on job-related factors and performance metrics and to consistently apply these criteria across all candidates, regardless of their demographic characteristics [11]. This can help ensure that the hiring process is fair and unbiased and that organizations are able to attract and retain the best talent, regardless of their background.

3.3 Attitude

Psychological construct that refers to how a person thinks, feels, and behaves in response to a particular situation or stimulus. In the context of human resource diversity, an attitude refers to an individual’s beliefs, opinions, and feelings towards people of different genders, races, ethnicities, religions, ages, abilities, sexual orientations, and other diverse characteristics [12]. Attitude plays a crucial role in shaping how people interact with others in the workplace. An employee’s attitude towards diversity can affect their willingness to work with people from different backgrounds, ability to communicate effectively with diverse colleagues, and openness to learning from different perspectives. Positive attitudes towards diversity can lead to a more inclusive and collaborative work environment, whereas negative attitudes can create tension and hinder productivity. Employers can influence their attitudes towards diversity through various strategies, including training programs, diversity and inclusion initiatives, and promoting a culture of respect and tolerance [13]. By fostering a positive attitude towards diversity among employees, organizations can create more diverse and inclusive workplaces that benefit everyone.

3.4 Ability

This is one of the many factors contributing to human resource diversity. When discussing human resource diversity, we refer to the differences that exist among people in an organization, including differences in age, gender, race, ethnicity, religion, sexual orientation, and physical abilities. One aspect of ability that is relevant to human resource diversity is cognitive ability [14]. This refers to a person’s mental capacity for learning, reasoning, problem-solving, and decision-making. When an organization values cognitive diversity, it seeks to bring together people with different cognitive abilities and thinking styles, recognizing that this can lead to more creative solutions, better decision-making, and improved innovation. Another aspect that is relevant to human resource diversity is physical ability [15]. This includes a person’s physical capacity to perform certain tasks, such as manual labor or operating machinery. An organization that values physical diversity recognizes that people with different physical abilities can bring unique perspectives and insights to the workplace, and that accommodations may be necessary to ensure that everyone can perform to their fullest potential. Finally, the relationship between ability and human resource diversity is complex and multi-faceted. By valuing and embracing the diverse abilities of employees, an organization can create a more inclusive and innovative workplace culture that benefits everyone.

3.5 Personality

Personality refers to a unique set of traits, behaviors, and characteristics that define an individual’s patterns of thinking, feeling, and behaving. In the context of human resource diversity, personality plays a significant role in shaping the behavior of employees and their interactions with each other and with the organization [16]. Workplace diversity can manifest in many ways, including differences in personality types. For instance, some employees may be more outgoing and assertive, whereas others may be more introverted and analytical. These personality differences can impact how employees communicate, collaborate, and work together and can either enhance or hinder productivity and teamwork. Understanding and managing personality diversity in the workplace can help organizations create a more inclusive and effective work environment. Human resource professionals can leverage personality assessments and training programs to help employees better understand and appreciate different personality types and learn how to work effectively with people with different communication and work styles [17]. Moreover, human resource diversity initiatives that embrace and celebrate individual differences, including personality, can foster a culture of inclusion, respect, and acceptance, which can boost employees’ morale, engagement, and retention.

3.6 Able-bodiness

Able-bodiness refers to a person’s physical and mental ability to perform tasks without significant limitations or disabilities. In the context of human resource diversity, able-bodied bodies are an important consideration for creating diverse and inclusive workplaces [18]. Employers must consider the needs of employees with disabilities, both visible and invisible, to ensure that they can perform their duties to the best of their abilities. This means providing accommodations such as wheelchair ramps, braille signage, and assistive technology, as well as creating a culture of acceptance and understanding [14]. It is also important to recognize that not all disabilities are visible. Mental health conditions, for example, can also impact a person’s ability to perform their job and should be accommodated and supported as needed. Creating an inclusive workplace that values and respects disabled individuals can lead to greater diversity and productivity. It also helps to break down stigmas associated with disabilities and promotes a culture of empathy and understanding [19].

3.6.1 Other forms of diversity that affect employees’ performance

• Recruitment and hiring practices: the way an organization recruits and hires employees can greatly impact diversity. If an organization recruits only from certain colleges or universities, or if it relies on personal networks for referrals, it may unintentionally limit its diversity. To promote diversity, organizations can implement policies and practices that encourage a broader range of applicants and use objective criteria to evaluate candidates [20].

• Organizational culture: Kayes [20] asserts that the culture of an organization can also influence its diversity. If an organization has a culture that is unwelcoming or hostile towards certain groups, it may struggle to attract and retain diverse employees. On the other hand, if an organization values and promotes diversity, it can create an inclusive environment that encourages all employees to contribute to their unique perspectives and experiences.

• Education and training: Milem et al. [21] argued that education and training can also play a role in promoting diversity within an organization. By providing diversity and inclusion training to employees, organizations can help them better understand the value of diversity and how to work effectively with people from different backgrounds.

• Demographic trends: demographic trends can also impact human resource diversity. For example, as the population becomes more diverse, organizations that fail to embrace diversity may struggle to attract and retain talent. In contrast, organizations that prioritize diversity and create inclusive cultures may be better positioned to attract and retain diverse employees. Overall, promoting diversity within an organization requires concerted effort across multiple fronts. By focusing on recruitment and hiring practices, organizational culture, education and training, and demographic trends, organizations can create a more diverse and inclusive workforce better equipped to meet the challenges of a rapidly changing world [22].

4. Cultural differences between nations in the context of employment

Zhou and Kwon [23] asserted that Hofstede’s research on cultural variances, conducted in 1980, is a renowned study in this realm of cultural dimensions. The researcher analyzed the differences in attitudes and values among around 117,000 IBM employees from 72 different nations. The researcher selected approximately 50 nations [24]. The study was centered on how national culture affects the sub-cultures within the organization, which he observed by monitoring the actions of employees. Hofstede’s discoveries have illuminated significant cultural differences in how countries operate in the workplace [25]. It is essential to take these differences into account when taking on employment in foreign countries or when starting a multinational company in different countries around the world, as being aware of cultural preferences can lead to embracing others’ ways or reaching a compromise that satisfies everyone’s needs.

Hofstede’s four dimensions refer to a model developed by the Dutch social psychologist Geert Hofstede to analyze and compare cultural differences across countries. These dimensions provide insights into how various societies and cultures differ in terms of their values, behaviors, and attitudes. According to [26] as cited in Minkov and Hofstede [27] the four dimensions are as follows:

4.1 Power distance index (PDI)

Power distance is a measure of the extent to which less powerful members of a society accept and expect power to be distributed unequally. In societies with high power distance, there is a greater acceptance of hierarchical structures, authority, and unequal distribution of power. Conversely, in societies with low power distance, people tend to value equality, participatory decision-making, and reduced hierarchical gaps.

4.2 Individualism versus collectivism (IDV)

This dimension focuses on the degree of individualism or collectivism present in a society. Individualistic cultures emphasize personal freedom, autonomy, and self-expression. People in these cultures tend to prioritize personal goals and achievements over group interests. On the other hand, collectivistic cultures place more emphasis on group harmony, interdependence, and loyalty. Group goals and societal expectations take precedence over individual desires.

4.3 Masculinity versus femininity (MAS)

This dimension refers to the degree to which a society values traditionally masculine or feminine traits. Cultures with high masculinity tend to value competitiveness, assertiveness, and the accumulation of wealth and success. They often exhibit distinct gender roles and place a stronger emphasis on material achievements. Conversely, cultures with high femininity prioritize cooperation, compassion, quality of life, and nurturing behaviors. Gender roles may be more flexible and equal in these societies.

4.4 Uncertainty avoidance index (UAI)

Uncertainty avoidance measures the extent to which a society feels threatened by ambiguous, uncertain, or unknown situations. Cultures with high uncertainty avoidance tend to have a strong preference for structure, rules, and formalized processes. They strive to minimize risk, seek security, and value conformity. In contrast, cultures with low uncertainty avoidance are more comfortable with ambiguity, change, and risk-taking. They exhibit a greater tolerance for diverse ideas, innovation, and adaptability.

These cultural dimensions are broad generalizations and should not be applied rigidly to individuals or specific situations. Nevertheless, they provide a useful framework for understanding and comparing cultural differences across countries, which can be valuable in various fields such as international business, cross-cultural communication, and global teamwork.

5. The relationship between human resource diversity and organizational development

The relationship between human resource diversity and organizational development is a topic of significant importance in today’s globalized and diverse workplaces. Human resource diversity refers to the presence of employees from different backgrounds, such as race, gender, age, ethnicity, sexual orientation, and cultural heritage, within an organization [28]. Organizational development, on the other hand, refers to a planned and systematic approach to improving an organization’s effectiveness and overall performance [29]. When human resource diversity is effectively managed and embraced within an organization, it can have several positive impacts on organizational development. Here are some key aspects of this relationship:

5.1 Enhanced creativity and innovation

Diversity brings together individuals with different perspectives, experiences, and knowledge. This diversity of thought and approach can foster creativity and innovation within the organization. Different viewpoints and ideas can lead to more effective problem-solving, increased adaptability, and the development of unique solutions to challenges.

5.2 Expanded talent pool

Embracing diversity in recruitment and hiring practices allows organizations to tap into a broader talent pool. By considering candidates from various backgrounds, organizations can access individuals with unique skills, experiences, and perspectives. This can contribute to a more skilled and versatile workforce, which can positively impact organizational development.

5.3 Improved decision-making

Diverse teams have been shown to make better decisions. When multiple perspectives are considered, a wider range of options and alternatives can be explored. This helps to minimize biases and enhances the quality of decision-making processes. Improved decision-making can lead to more effective strategies, better risk management, and ultimately, positive organizational development.

5.4 Enhanced employee engagement and retention

When employees feel valued, respected, and included, they are more likely to be engaged and committed to their work. Inclusive environments that embrace diversity can contribute to higher employee satisfaction, motivation, and loyalty. This, in turn, can reduce turnover rates and improve employee retention, which is essential for organizational stability and development.

5.5 Better customer understanding and market reach

Organizations that reflect the diversity of their customer base are often better positioned to understand their customers’ needs, preferences, and cultural nuances. This understanding can lead to more effective marketing strategies, product development, and customer service, ultimately resulting in improved customer satisfaction and increased market reach.

5.6 Enhanced reputation and brand image

Embracing diversity and creating an inclusive work environment can positively impact an organization’s reputation and brand image. Companies that value diversity and demonstrate inclusive practices tend to be seen as more progressive, socially responsible, and attractive to diverse talent. This can help in attracting top talent, building strong partnerships, and gaining a competitive advantage.

Effective management strategies and intentional efforts are needed to realize the potential benefits of human resource diversity. To ensure equal opportunities for career growth and development, organizations must create policies that promote a culture of respect and open communication. Therefore, organizations can leverage the relationship between human resource diversity and organizational development to achieve long-term success. It is clear that human resource diversity and organizational development are intrinsically linked. Promoting diversity and inclusion in the workplace can help drive organizational development through innovation, improved decision-making, employee engagement, and enhancing brand trust. By valuing and leveraging the unique contributions of individuals from diverse backgrounds, organizations can adapt, thrive, and remain competitive in an increasingly diverse and interconnected world.

6. Different levels of diversity among employees in the world of work

The term “level of diversity in the workplace” refers to the various categories or types of diversity present among employees. This can include a range of characteristics that employees possess. By acknowledging and accepting these different layers of diversity, organizations can establish a more inclusive and diverse workplace where all employees feel appreciated and treated with respect. Demographic diversity pertains to the various distinctions in personal characteristics among individuals, including age, gender, race, ethnicity, nationality, religion, and sexual orientation. These characteristics are often considered as fundamental components of an individual’s identity and can significantly impact their experiences in the workplace. Inclusion can lead to increased innovation and creativity in organizations that value and embrace demographic diversity. Organizations can exhibit diversity in various dimensions, which can include but are not limited to:

1. Cognitive diversity: refers to differences in thinking, problem-solving, and decision-making styles. This encompasses diverse skills, abilities, and knowledge.

2. Personality diversity: includes differences in personality traits such as introversion, extroversion, openness, conscientiousness, agreeableness, and emotional stability.

3. Functional diversity: embraces differences in job functions, expertise, and experience. This could be due to differences in education, training, and work experience.

4. Social diversity: involves differences in social backgrounds, such as socioeconomic status, family background, and upbringing.

5. Cultural diversity: refers to the differences in customs, beliefs, values, and practices among different groups of people.

6. Linguistic diversity: incorporates differences in the language spoken, dialect, and communication styles.

7. Demographic diversity: refers to differences in personal characteristics, such as age, gender, race, ethnicity, nationality, religion, and sexual orientation.

8. Hierarchical diversity: pertains to differences in power, status, and authority among employees within the organization.

The diversity among these types is interconnected and contributes to making the workplace a more inclusive and diverse place to work. In order to increase creativity, innovation, and productivity, organizations need to recognize and embrace these differences (Loden and Rosener [30] cited in Launikari [31]).

7. Conclusions

In summary, the basic concept of managing diversity acknowledges that the workforce is comprised of a diverse population of people. This diversity includes visible and non-visible differences, such as sex, age, background, race, disability, personality, and work style. However, it is based on the premise that leveraging these differences will create a productive environment where everyone feels valued, their talents are fully utilized, and organizational goals are achieved. Management must make an effort to boost workers’ morale in order to enhance their performance despite their differences. This can be observed in the strategic and organized manner in which workers are managed. Additionally, within the organization, workers are given the freedom to contribute both intellectually and practically to the effectiveness and efficiency of the organization. In the area of production management, the organization should de-emphasize a bureaucratic style of management. Therefore, individual views and opinions are accepted and respected because management must recognize the importance of managing diversity.

8. Suggestions for future study

Discovering innovative approaches and frameworks for handling diversity can unlock the immense advantages of having a diverse workforce. This requires acknowledging and embracing the unique qualities of each employee and fostering an environment that encourages learning and development through diversity. The presence of cultural diversity can have a significant impact on the effectiveness of an organization. By comprehending how to manage cultural diversity, employees’ experiences of marginalization, and conflict resolution, one can gain valuable insights into creating a more inclusive and productive workplace. The promotion of cognitive diversity is equally important for effective collaboration and problem-solving as is promoting demographic diversity. Different approaches, perspectives, and thinking styles are part of cognitive diversity. Innovation and decision-making can be enhanced by combining different ways of thinking. Diverse workplaces are characterized by age, language, and culture. A more inclusive and harmonious work environment can be achieved by understanding and managing these aspects. A strong culture of understanding and appreciation of culture can be fostered by organizations by bridging generational gaps, promoting language inclusivity, and fostering language inclusivity.