THE MANAGERIAL TOOLS, OPPORTUNITIES, CHALLENGES AND BENEFITS ASSOCIATED WITH DIVERSITY IN THE WORKPLACE
1. Introduction
1.1. Background
Workplace diversity occurs due to the presence of employees who come from diverse cultural backgrounds. It facilitates innovation and creative ideas within a workplace; however, it also causes conflicts among workers. The majority of multinational companies acquire employees from distinct cultural backgrounds, which helps them gain insights into the local and national cultures. Due to the distinction in perspectives, conflict is one of the major issues in a diverse workforce (Al Doghan et al. 2022). Culture has emerged as an important factor in global corporations, as employees’ opinions are influenced by their cultural origins and traditions. On the other hand, positive cultural integration has also been used in the talent acquisition process. Most people from many cultural origins want to work in an equal and friendly workplace.
As a result, “Human Resource Management or HRM” generally employs various managerial tools, which aid in reducing conflicts among employees. One of the effective strategies for managing diversity within a workforce is to facilitate communication among the employees and the higher management. HRM plays a critical role in providing employees with adequate scope to highlight their concerns and challenges regarding the workplace. HRM also implement various policies to create an inclusive environment at the workplace to reduce adversity for the employees (Alshaabani et al. 2022). One of the major challenges of employee diversity is the language barrier, which restricts communication between workers. It often results in miscommunication and conflicts, which affects the overall productivity of international firms. IHRM practitioners analyse various challenges such as organisational behaviour, cultural differences and expatriate management to integrate a positive practice within the firm.
1.2. Rationale
One of the major challenges faced by the IHRM is the lack of cultural knowledge among the employees. Employees with limited knowledge regarding diverse cultures often have personal biases and prejudices against different traditions. It generally results in an adverse situation for employees belonging to distinct ethnicities and cultures. It leads to negative experiences at the workplace negatively affecting the performance of the workers which in turn reduces the overall productivity of the firm (Aslam et al. 2023). The lack of cultural knowledge reduces the acceptance among the workers regarding diverse traditional and religious values, which facilitates disagreements and conflicts. Moreover, the language barrier is another issue of the diverse workforce, which creates significant difficulties in the employee management process. Language barrier enhances the challenges of interaction among employees and result in the alienation of diverse workers.
Due to the language barrier, international firms often face severe challenges to retain local employees and to acquire skilled workers. Language can pose various implications, which can only be understood by people from a specific region. Therefore, some gestures can be offensive to others, which can also cause significant challenges in diversity management.
1.3. Significance of research
The study is essential for understanding the challenges of a diverse workforce within international firms. It will highlight the problems firms have faced to accommodate employees from diverse cultural backgrounds. Moreover, it will inform various managerial tools which are used by the IHRM practitioners to reduce the challenges of diverse employees. The opportunities of acquiring a diverse workforce and its challenges will help in evaluating the affirmative and negative aspects of recruiting workers from diverse cultural backgrounds (Ayoko et al. 2022). As a result, the research can assist in understanding the reason behind integrating diverse workforce practices of multinational firms. It will also analyse the benefits of diversity and a few recommendations for employing adequate diversity management depicting appropriate strategies of IHRM.
2. Aim and Objectives
2.1. Aim
The aim of the paper is to analyse the available tools to the HRM in managing diversity and how they mitigate the challenges related to a diverse workforce and acquire benefits. The aim of the research is also to discuss the role of HR in managing cultural diversity and differences in business enterprises along with their main HR department.
2.2. Objectives
- To assess relevant literature related to intercultural business strategies, communications and methods of HRM to manage workplace diversity
- To employ case study analysis to highlight the strategies of HRM to mitigate diversity-related challenges
- To determine the gap and perform research to gather relevant information
3. Identification and initial review of key literature
The analysis of key literature highlights the assessment of information on diversity practices and its challenges in multinational firms from various sources. The challenges and benefits of diverse employees are assessed from different perspectives along with providing related theories and conceptual frameworks.
3.1. Concepts
3.1.1. Elaboration of managerial tools of HRM in managing workplace diversity
Devising an effective recruitment strategy is one of the effective tools for managing diversity in the workplace. According to Barcan (2020), international firms create an efficient hiring process, which evaluates the performance and skills of the employees. Performance-based recruitment analyses the experience and educational background of the candidates against the required competencies of job roles. It helps the HR department in acquiring competent workers reducing personal bias in the hiring process. It also assists in maintaining diversity in the workplace, as “performance-based recruitment” does not discriminate against people over their gender, culture or religion. An appropriate recruitment process helps the international firm in facilitating positive practices within the workplace. On the other hand, HRM practitioners often utilise various conflict management processes to reduce issues of a diverse workforce. According to Bieńkowska et al. (2022), conflict management assists international firms in evaluating the situation and highlighting appropriate processes to solve employee conflicts. It aids in maintaining an inclusive environment in the workforce.
In addition to that, leadership style has a significant role in maintaining workplace diversity through the facilitation of adequate practices during the operational process. Effective leadership necessitates effective communication skills to comprehend and promote management change through “decision-making.” The higher management of international firms often creates open communication channels with the workers to address and identify the challenges of the diverse employees. According to Branicki et al. (2021), operational changes have an impact on organisational culture and it highlights the role of leaders in encouraging the employees to accept the changes. Introducing change in the existing process requires efficient leaders, who can interact with the employees and highlight the necessity of the organisational change to accommodate different cultures. Chang et al. (2021) state that top management’s communication abilities enable the organisation to attain its targeted outcome after the transformation process. As a result, effective communication helps in integrating cultural change within the organisation to accommodate employees from different cultural backgrounds.
3.1.2. Opportunities of employing diverse employees in multinational firms
IHRM is a unified approach of a corporate organisation to manage its people to achieve considerable achievement in the business sector. According to Fang et al. (2022), the business firm often relies on international expansion to attain higher profits in the business industry. The global expansion provides business firms with the added advantage of creating a large base of consumers to multiply their profits and revenue. Maintaining an international operation generally requires the recruitment of local employees, who have significant knowledge about the market and the national culture. Fehér et al. (2022) state that multinational enterprise often acquires benefits from employing local employees as they can gain significant knowledge about the culture and tradition of the country to provide adequate service and relevant products to the consumers. Employees from different cultures can provide insight into the market demand and consumers’ requirements.
They can also provide relevant knowledge about the impact of culture on the buying motivation and preferences of potential consumers. As a result, multinational firms can gain a competitive advantage in the new market segment. As per Giancaspro et al. (2021), majority of the multinational firms acquire diverse workforces to reduce labour costs as it reduces the expanses for expatriate management. Acquiring local employees helps in the decision-making process as well as the diverse workforce contributes significantly to the company’s operation due to their wide range of experiences and insights. A diverse workforce makes business firms socially aware and innovative, which benefits the overall business practices by increasing their efficiency. Hence, most multinational firms expand their hiring practices in foreign countries to recruit a diverse workforce, which leads to data-driven and smart decisions in business processes.
On the other hand, It helps in acquiring skilled professionals, as employees in recent years are inclined toward organisations which can establish an inclusive environment. The diverse teams tend to be productive with the integration of proper management processes, which assists in maintaining adequate productivity and efficacy of the operational processes.
3.1.3. Challenges Faced by the IHRM in Managing a diverse workforce
Due to the difference in culture, the HR department of international firms had considerable issues in retaining its personnel. Diverse employees face difficulties in the workplace due to discrimination and bias, which facilitate adverse working conditions. As per the understanding of Chapano et al. (2023), high employee turnover often results in significant financial loss as the company has to allocate significant finances to acquire new employees and provide them with training. Therefore, inappropriate management of the diverse workforce can lead to an increase in financial expenditure. According to (), the language barrier is one of the prominent issues, which international firms face due to their diverse workforce. Culture has a significant impact on the style and preferences in communication with other individuals.
Communication breakdowns among team members frequently impede the work process, limiting development. According to Collings et al. (2021), a lack of good communication causes disagreements among employees, lowering job quality and negatively impacting the enterprise’s overall success. International companies, on the other hand, typically have people from varied backgrounds, which reveals substantial cultural variations that govern employee conduct and attitude in the workplace. Furthermore, in case a corporation has failed to maintain a level playing field for all employees, resulting in a biased workplace. Personal bias among employees often leads to discrimination and harassment. Around 61% of international employees have faced discrimination which is based on their gender, race, ethnicity and culture. It generally led to the inferior reputation of the firms in the international market, which hinders business expansion due to the inability to retain skilled workers.
Cultural integration is critical in the case of a maintaining diverse workforce to acquire a positive environment in the workplace for all workers. Evangelista et al. (2023) state that the lack of an inclusive environment hinders the enterprise’s productivity, limiting employee satisfaction and higher turnover in the process. Firms which are unable to create an inclusive environment for the diverse workforce suffer from low productivity. The firm loses its competitive advantage in the market against the rival forces resulting in reduced revenue and “market capitalisation”, which negatively affects the viability of their business.
3.1.4. Recommendation for managing diverse employees in the workplace
Gender roles and ethnicity can differ among cultures, resulting in confusion among employees and upper management. According to Jae-Yeoup Kim, & Jang-Ho (2022), inadequate awareness of other cultures can harm the workplace teamwork environment by causing employee dissatisfaction, which leads to lower involvement in the work process. International initiatives necessitate effective coordination across teams and workers to examine creative approaches and limit risks. Jankelová et al. (2020) state that most international corporations form diversity management teams to eliminate cultural differences among workers by offering insight into another culture. Amazon, for example, incorporated diversity training for every staff member to foster an inclusive workplace atmosphere and enhance awareness among people about various traditions. As a result, the company has effectively handled its foreign projects. Another problem in managing internal projects is language differences, as employees frequently require assistance in maintaining communication with others.
The disparity in language fluency and understanding exacerbates employees’ efficacy in performing various tasks. Jankelová et al. (2021) highlight the importance of language training for diverse employees to provide them with adequate sessions to learn a language effectively, which will be used in the official documents. It can help facilitate understanding regarding the operational process and various procedures of the enterprise. On the other hand, “Digital HRM” enables the use of cloud and statistical instruments to provide exact HR services and find qualified personnel. It provides significant modifications in the implementation and execution of many procedures to improve the viewpoints and experiences of employees. According to Lee et al. (2022), it has aided in the transformation of traditional HRM’s “paper-based” operations and increased worker visibility. International firms can use “Digital HRM” to identify employee concerns and difficulties among the diverse workforce more effectively. It can aid in understanding the root causes of the firm’s “cultural divergence” and the failure of its “diverse management” strategy.
The “Digital HRM” can help with employee communication, resulting in a better understanding of varied cultural and traditional values. As per Lulewicz-Sas et al. (2022), integrating “Deep learning AI” can assist international firms and their IHRM practitioners in analysing staff performance and behaviour. The AI is primarily concerned with recognising individuals’ behavioural patterns to estimate “team working abilities” and the potential constraints of certain personnel. On the other hand, it can assess the organization’s leadership style, supporting good improvements in managing workplace cultural differences. The “Digital HRM” approach is frequently combined using “machine learning or ML,” which can assist in evaluating employees’ skills and previous work experiences. As a result, it may properly allocate duties based on the talents of the people. “Digital HRM” and “Cloud technology” can aid in streamlining the work process, increasing employee engagement and collaboration, and fostering “teamworking spirits” among divisions and employees.
3.2. Conceptual framework
Figure 1: Conceptual framework
(Source: Self-created)
3.3. Theoretical application
Maslow’s Hierarchy of Need Theory
The theory proposes five distinct degrees of motivation that help businesses design their operational strategies. The term “physiological needs” relates to an individual’s need for essentials such as “water, food, rest, clothing, and shelter.” This is the first step. According to (), the physiological need is often addressed by providing employees with adequate compensation and benefits, allowing people to live healthy lifestyles. The “Safety need” emphasises the demand for safety at work, which is linked to employees’ physical and mental well-being. According to Majam & Jarbandhan (2022), upholding workers’ safety requirements leads to enhanced satisfaction and successful performance. Maintaining employee safety is critical for improving employee engagement and trust, which helps organisations increase overall productivity. The term “psychological need” refers to people’s need for esteem and things. To feel fulfilled at work, employees often require social interaction with their superiors and colleagues.
Figure 2: Maslow’s Hierarchy of Need Theory
(Source: Mirčetić et al. 2022)
The international firm needs to provide its employees with a range of group projects, which supports the corporation in sustaining contact across varied departments. The “Esteem need” underlines the importance of success since it is how a firm controls job fulfilment to improve employee interest at work. According to Mirčetić et al. (2022), workers need to be given ample opportunity to study and use their innovative concepts in the workplace. It has benefited the company in meeting the needs of its personnel for “self-actualization.” As a result, the usage of “Maslow’s hierarchy of needs” highlights the scope of maintaining satisfaction among the diverse workforce through the implementation of appropriate rules to reduce discrimination and bias.
4. Research design
4.1. Research Philosophy
The research philosophy is a vital component of the research process since it highlights the data collection strategies linked with a certain event. There are three types of research philosophies: positivism, realism, and interpretivism. Positivism is generally employed in the research, which is highly structured with the availability of a wide range of samples. Realism relies on the scientific approach and avoids subjective views regarding a particular phenomenon. On the other hand, interpretivism uses a small sample size to facilitate in-depth research and is generally qualitative. In this study, realism will be utilised to assess information about diversity in the workplace and strategies to manage it (Mohiuddin et al. 2022). Realism is based on a practical understanding of an occurrence, which aids in the integration of scientific practises into research. Realism, on the other hand, recognises the significance of scientific explanations for occurrences. As a result, it can assist in studying the positive and negative effects of workplace diversity and available managerial tools for addressing them.
4.1. Research Philosophy
The research philosophy is a vital component of the research process since it highlights the data collection strategies linked with a certain event. There are three types of research philosophies: positivism, realism, and interpretivism. Positivism is generally employed in the research, which is highly structured with the availability of a wide range of samples. Realism relies on the scientific approach and avoids subjective views regarding a particular phenomenon. On the other hand, interpretivism uses a small sample size to facilitate in-depth research and is generally qualitative. In this study, realism will be utilised to assess information about diversity in the workplace and strategies to manage them (Mohiuddin et al. 2022). Realism is based on a practical understanding of an occurrence, which aids in the integration of scientific practises into research. Realism, on the other hand, recognises the significance of scientific explanations for occurrences. As a result, it can assist in studying the positive and negative effects of workplace diversity and available managerial tools for addressing them.
4.2. Research approach
The data evaluation procedure is determined by the research approach, which is classified into two major groups: “inductive” and “deductive.” The inductive approach facilitates observation of collected information, whereas the deductive method analyses existing theories to form hypotheses, which are later used to collect relevant information. The “inductive approach” will be used in the study to examine the data collected on available managerial tools for addressing diversity-related challenges (Navajas-Romero et al. 2022). One of the primary benefits of the inductive technique is that it makes observations easier. As a result, it will aid in the analysis of acquired to detect trends of the business firms in reducing workforce diversity issues.
4.3. Research design
The research designs are divided into numerous groups, which aids in assessing the utility of obtained data in verifying a certain occurrence and its underlying causes. The major categories of “research design” are explanatory, experimental, descriptive, correlational and diagnostic. In this study, the explanatory design will be employed to gain insight into the managerial tools which are used in reducing the challenges of a diverse workforce within an organisation (Paulet et al. 2021). It also aids in determining the cause of a phenomenon and in forecasting future occurrences. As a result, the explanatory design will be useful in analysing the negative aspects and the advantages of diversity and their mitigation strategies of HRM.
4.5. Data collection
The “data collection process” is related to gathering information about a specific occurrence. It is often classified as “primary,” “secondary,” or “mixed.” In this study, a mixed approach will be used to collect both primary and secondary data. The “primary data” will be gathered through the survey procedure to obtain information on the challenges of a diverse workforce and managerial tools which are used to resolve associated challenges. The survey will aid in the collection of quantitative research information regarding the mitigation strategies of HRM to manage diversity among employees (Sealome & Chipunza, 2020). As a result, “quantitative data collection” enables researchers to gather statistical information. The “primary quantitative information” will be collected from a survey of 30 participants.
On the other hand, qualitative data assists in reducing personal biases from data collection, which allows scholars to discover the reasons behind a phenomenon from multiple perspectives. Secondary qualitative data will be gathered from genuine sources such as “ProQuest” and “Google Scholar” from journals, articles, and government publications. It will aid in the development of a strong foundation for the study through the employment of case study analysis.
4.6. Data analysis
Data analysis refers to the procedures of assessing the collected information regarding an event. Relying on the type of information, the analysis process is also divided into two groups, “primary analysis” and “secondary analysis”. The data collected from the survey will be analysed by using pie charts which will help in visually representing the collected statistical information from the participants on the effective managerial tools of diversity management (Tamtik, 2022). It will aid in the methodical analysis of the respondents’ viewpoints and highlight distinct themes that will answer the research questions. The “secondary data,” on the other hand, will be evaluated using “case study analysis” to emphasise the consequences of diversity within the business firms and their challenges.
4.7. Sampling technique
The sampling strategy entails selecting a particular population from which to collect information for the research. This study will use “simple random sampling” to acquire the necessary data about the impact of a diverse workforce on business organisations to evaluate their positive and adverse effects. The term “simple random sampling” refers to the process of selecting sources for data collection at random. Because the information was gathered at random, the study using such samples has a high degree of authenticity. It will be easier to include data with minimum researcher bias in case “random sampling” is used.
It will assist in the selection of relevant material from web sources and randomly select the participants for the survey process to acquire bias-free information regarding the challenges encountered by HR professionals in managing the diverse workforce in their workplace (Tej et al. 2021). It will also help in integrating valid information regarding the use of managerial tools, which are used in lessening the adversity of managing diverse employees.
4.8. Reliability and validity
Reliability and validity are linked to the study’s integrated data which have a significant impact on the research outcome. This study will gather data from credible sources to ensure the accuracy of the information presented about diversity management techniques and the use of various managerial tools (Tortia et al. 2022). Furthermore, personal bias will be avoided to produce meaningful results addressing the disadvantages and benefits of acquiring a diverse workforce.
4.9. Research ethics
“Research ethics” or “ethical considerations” are general standards that help to maintain transparency during research. In order to obtain informed consent, participants in the survey process will be informed regarding the aim of the research. The participants will have the chance to leave the research at any point. “Identifiable information” about the participants will not be collected to guarantee anonymity and confidentiality (Uslu et al. 2023). The information gathered during the survey and the “secondary data collection” procedure will be kept in a “password protected” folder. Additionally, the “data protection law” will be maintained to provide precise and adequate research information regarding the materials tools and HRM strategies, which are used to address the issues related to managing diversity in the workplace.
5. Research plan
Figure 3: Research timeline
(Source: Self-created)
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