Diversity in Business: A Review

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. Guillaume, Dawson, Otaye-Ebede, Woods & West (2015) performed a study aimed at informing organizations and managers on how to effectively manage workplace diversity. In the overview, Guillaume, Dawson, Otaye-Ebede, Woods & West (2015) identified variables such as strategy, unit design, human resource (

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Introduction
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
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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.
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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.
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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.
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
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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.
Recommendations
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
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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.
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
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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.
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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.
http://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. http://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.
http://dx.doi.org/10.1002/job.2040
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