Moderating variables on diversity in the workforce
Discuss about the Human Relations for Financial Performance of Ethnically Diverse Teams.
The increasing shift of demographic patterns, compositions and work practices in the world today warrants an integration of diversity viewpoints into organisations. For a business to be successful, it must manage its diversity workforce effectively by taking into consideration the moderating factors. This paper examines three articles all of which review the moderating factors that determine the impact of the outcomes of a diverse workforce either in a positive or negative way. In the initial section, the essay will give a brief overview of what each article contains. Further on, an analysis of all three essays will be brought forward. In the preceding section, the paper proposes avenues that require further research and winds up by giving feasible inferences.
Guillaume, Dawson, Otaye-Ebede, Woods & West (2015) performed a study aimed at informing organizations and managers on how to effectively manage workplace diversity. Their focus in the review was on variables moderating the effect of diversity on performance, innovation, creativity, social homogeneity and workforce welfare variables. In the overview, Guillaume, Dawson, Otaye-Ebede, Woods & West (2015) identified moderating variables such as strategy, unit design, human resource (HR) practices, climate and culture, leadership, and individual differences. These moderating variables were explained to be those in which the organization has control over. Further, they examined several studies that provide empirical quantitative data on the moderated effects of workplace diversity. In particular, the Categorization-Elaboration Model, the typological approach, the fault line approach, and the contextual framework were examined as models containing contingencies of work group diversity effects. Diversity is viewed to benefit an organization by, increasing innovation, talent pool, productivity, customer base and builds the reputation of the company. However, the foursome acknowledged, in their study, that diversity is a double-edged sword that does not always work to benefit an enterprise. This is because at times linked to more conflict, lower morale, and poorer performance. For this reason, they worked to scrutinize the various moderators on the effect of diversity.
Greer, Homan, De Hoogh & Den Hartog (2012) studied the effects of a visionary leader on the production and communication adequacy in an ethnically diverse team. They found fault in previous findings of consequences ethnic diversities have on a team’s performance and communication. To make congruent such inconsistencies, they suggested reviewing the disposition of leader behavior and assortment in an ethnically diverse team. An ethnically diverse team is described, in their qualitative report, as a group containing people from distinct social and cultural backgrounds in the society. The report explains that visionary leaders often idealize, set values and future goals of an organization for which employees follow. Visionary leaders that exhibit a high tendency to categories the workforce into groups could potentially negatively affect the relations, attitudes, and perceptions of an ethnically diverse team. To test the theory of leader behavior and categorization on the performance of an ethnically diverse team, the authors examined 100 retail outlets. Just like Guillaume, Dawson, Otaye-Ebede, Woods & West, (2015), they call to use a moderating approach to diversity taking a particular focus on the leadership moderator. The idea is to understand the implications of leadership on the negative or positive outcomes of diversity.
The role of visionary leadership in ethnically diverse teams
Goldberg, Riordan & Schaffer (2010) conducted a study to weigh upon the moderators that prescribe when demographic similarity matters and the effects on work outcomes. They explained that relational demography within groups is often informed by the social identity theory. What’s more, a social identification motive is described in the text to include the need to reduce uncertainty and enhance social status. These motives act as moderators for the relationships linking race and gender or both in similarities and incoherence at the same time affecting group outcomes. The research was completed to contribute to the insufficient texts that had not tested effects of these motives. More explanation is given as to why individuals choose to classify themselves and others into groups. In so doing people boost their self-esteem and need for self-continuity by feeling like they belong somewhere thus reducing uncertainty about their social identity. The trio points out that social identification being a group phenomenon shapes the creation of a shared identity. Their study examines surface demographics such as age, race, gender, education levels, and industry background along with perspectives, values and outlook since these attributes structure a person’s identity.
All the three journal articles selected for this analysis share the commonality that they test theoretical mechanism that moderate a particular outcome. The first two following the order of this essay demonstrates how the successful management of diversity in the workforce could lead to better performance, commitment, job satisfaction and ultimately financial befits to an organization. Leaders have the ability to bring together a diverse team with dissimilar opinions by a setting an agenda that guides and creates synergy among the workforce (Greer, Homan, De Hoogh & Den Hartog, 2012). A visionary leader that communicates a vision centered by categorization is likely to fuel the development of subgroups within the workforce. Subdued communication by the leader not speaking against such issues is likely to stimulate the workforces to categorize themselves. Sequel to this categorization is the emergence of conflict, tension, and rivalry among the various ethnic groups in the workforce. Further consequences are the lack of ample communication and the corresponding poor performance in the organization. Often research on strategic management had indicated leaders as an important tool in propelling the organization towards its goal. Even so, there is a tendency to ignore methods which leaders deliver the vision of an organization. A visionary leader exhibiting charisma and equality and in their vision for the future is more likely to influence the team to produce positive outcomes. This essay agrees with this standpoint by the authors that leader have the ability to impact the running and outcome of the workforce either in a way beneficial or detrimental to an organization.
Moderators that prescribe when demographic similarity matters and effects on work outcomes
Guillaume, Dawson, Otaye-Ebede, Woods & West (2015) covers a wider scope on moderators of work outcomes by integrating the leadership moderator (Greer, Homan, De Hoogh & Den Hartog, 2012) and the moderators of relational demography (Goldberg, Riordan & Schaffer, 2010) covered by the other two articles. It goes on to cover other moderators on work outcomes such as strategy, unit design, human resource (HR) practices, climate and culture, leadership, and individual differences. On a broad category workplace diversity is grounded in variables related to social identities and performance variables. The authors bring forward the social identity theory that posits the level to which groups and individuals perceive their dissimilar characteristics to other groups. This social categorization could in turn to compromise well-being, performance outcomes, social integration. The same point comes across in Goldberg, Riordan & Schaffer (2010) review of moderators of relational demographic on work outcomes. Over and above that, the researchers recognize the prominence of organization diversity as a whole. They reported on the positive effects of gender and racial diversity on a firm. Other than studying moderators that affect work outcomes, a suggestion was put forward (Guillaume, Dawson, Otaye-Ebede, Woods & West, 2015) and (Goldberg, Riordan & Schaffer, 2010) to offer diversity training to decision makers of an enterprise (managers, leaders, HR managers, employees).
On balance, all journals considered for this essay advocate on the need to manage diversity moderators effectively as part of the strategy of an organization.
(Guillaume, Dawson, Otaye-Ebede, Woods & West, 2015) appear to present a more credible argument. In the article, they comprehensively combine a variety of statistical approaches from multiple studies both recent and ancient. This is done in a bid to increase power over the individual studies previously performed and improve on estimates that had earlier on proved inconsistent. This journal covers a very wide scope carefully outlining each moderator factor while giving summaries after each point explained. It pursued contributing more information on contingencies that make workplace diversity work. Much of research emphasis is on the superiority of diversity but never give an account of occurrences that make it happen.
There is still a lot of confusion surrounding what workplace diversity entails. One thing that is clear however is that diversity one managed efficiently and effectively will increase innovation, talent pool, productivity, customer base not forgetting building the reputation of the company in question. Research presented to date still excludes a considerable amount of information for comprehension of workplace diversity and moderators that make it work for the better or worse. The lack of sufficient data causes uncertainty and though at times a strategy tabled in good faith, inclusive of a diversity framework, may end up being deficient. Hitherto, effective management of diversity requires that the management understands the contingencies that make workplace diversity work. The lack of a clear understanding translates into a poor definition of diversity practice.
Effective management of diversity moderators as part of the strategy of an organization
Leaders while delivering their vision should do so in a manner that is clear and non-bias. They have an ability to mobilize a people while in the position of power. A leader showcases their values and believes either knowingly or unknowingly even as they deliver their agenda and vision for the company. It is not always that categorization is a bad move for the company; sometimes it makes it easier when an immediate decision has to be made using the general knowledge of a group. Nonetheless, when it gets to a point where such categorization brings conflict, tension and inadequate communication, this should be an indication that the leadership style is faulty. In an ethnically diverse team, leaders ought to be careful of how they communicate to the team otherwise grouping may correlate with the team negatively.
More to this leaders should pay attention to the demographics of the workforce. This means that they should closely consider the age, gender, education, ethnicity, culture, religion, attitudes and beliefs of employees. Such understanding will help prevent miss-communication or behavior and grouping that could be offensive to individuals leading to high turn over, job dissatisfaction, poor productivity and low morale. Additionally, the decision makers look forward to harness the advantages that diversity bestows upon an organization rather than see it is a problem. Over and above all this, leaders should intervene and address when issues arise among the workforce relating to diversity. At all times, to achieve effectiveness and team excellence, the leader should ensure cohesion and unity in the workforce. An environment that monitors the performance encourages collaborative team effort and clear goal setting should be maintained. All this once followed will lead the team to the success it seeks.
The article (Guillaume, Dawson, Otaye-Ebede, Woods & West, 2015) though must be acknowledged for making massive efforts to try and mitigate flaws in the previous research. Notably, there is still an ongoing gap that warrants further research that allows opportunities to materially better the outcomes on the management of diversity. Research is needed to advance more knowledge on the complexities of demographic, similarities and differences. Tentative grounds extended by previous works are still wanting. Future research should as well include an even wider research on moderators of the effect of diversity on a workforce across the world. It should not be limited to only specific industries or geographical boundaries. It should also be noted that norms for industries differ from location to location, therefore, hypothesis presented by research should not be assumed to be applicable everywhere.
Conclusion
This paper describes the effects of workplace diversity on outcomes.to effectively manage outcomes of diversity. Managers should provide training to all shareholders in the organization to give better insights into problems related to diversity. When a situation arises that calls for knowledge offered in training of diversity, the content offered in the training should be sufficient enough to handle such a situation. It is certain from the evidence presented in this essay that diversity is a double-edged sword that does not always work to benefit the organization. While the emphasis is placed on the importance of diversity so must the moderating factors be examined such that only the positive outcomes are extracted from a diverse workforce.
References
Goldberg, C., Riordan, C., & Schaffer, B. (2010). Does social identity theory underlie relational demography? A test of the moderating effects of uncertainty reduction and status enhancement on similarity effects. Human Relations, 63(7), 903-926. https://dx.doi.org/10.1177/0018726709347158
Greer, L., Homan, A., De Hoogh, A., & Den Hartog, D. (2012). Tainted visions: The effect of visionary leader behaviors and leader categorization tendencies on the financial performance of ethnically diverse teams. Journal Of Applied Psychology, 97(1), 203-213. https://dx.doi.org/10.1037/a0025583
Guillaume, Y., Dawson, J., Otaye-Ebede, L., Woods, S., & West, M. (2015). Harnessing demographic differences in organizations: What moderates the effects of workplace diversity?. Journal Of Organizational Behavior, 38(2), 276-303. https://dx.doi.org/10.1002/job.2040
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