Evaluating Diversity Management in South Africa: BUF400S Report

This report provides a comprehensive analysis of diversity management in South Africa, addressing its current state, the reasons for embracing diversity, and the negative impacts of failing to do so. It explores leadership initiatives aimed at achieving full diversity and identifies factors contributing to the success of diversity management programs. The report highlights the importance of workforce diversity, including factors such as employee satisfaction, talent attraction, and financial growth, and supports its arguments with real-world examples of businesses. It also discusses the significance of organizational policies, diversity training, and leadership commitment in fostering an inclusive workplace. The report concludes with a call for more procedural and leadership initiatives to enhance diversity in the workplace in South Africa and globally.

Business Management
Diversity Management in South Africa
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Contents
Introduction...................................................................................................................3
Present day state of diversity management in South Africa........................................3
Reasons why diversity should be embraced................................................................4
Negative impacts of not embracing diversity................................................................4
Leadership initiatives which could lead to full diversity................................................5
Factors leading to diversity success.............................................................................6
Conclusion....................................................................................................................6
References...................................................................................................................7
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Introduction
Diversity is the difference in personal traits of people with in a group (Amaram,
2011). These differences can include different age groups, gender, ethnicity, religion,
education etc. In business context diversity refers to workforce diversity (Mor Barak,
2013). Workforce diversity is the inclusion of employees from varied backgrounds in
the workforce. Diversity management includes all the actions taken by the
organisation to include employees from diverse backgrounds into the organisational
roles and structure.
Present day state of diversity management in South Africa
Due to globalisation, diversity in the workforce is increasing internationally and has
its impact on the South African business world as well (April, et al., 2012). Diversity
management in any country goes beyond regulation. It involves inculcating a work
culture of inclusion and non-discrimination in an organisation.
South Africa is known for its ethnic diversity and has 11 official languages.
Therefore, inclusion an ethnically diverse workforce is must for promotion of the
concept of equal opportunities. Reports suggest that major employers in South Africa
are recognising diversity as a major driver of performance (Joubert, 2017). They are
now acknowledging that major studies in diversity management show that there is a
huge link between diversity management and financial growth.
Major organisations in South Africa in the current business scenario have generated
a diversity programme and have made procedures and policies to communicate it to
the employees (Mazibuko & Govender, 2017). South African employers have also
understood the need for diversity training. However, there is still need for awareness
in the small business sector.
Major research reports show that diversity management can help in addressing
issues like cultural differences, stereotyping, discrimination and prejudice (Laroche,
2013). Major companies of South Africa have shown a positive attitude towards
diversity management (April, et al., 2012). Many prominent business leaders in
South Africa have condoned diversity management. Dr Jonathan Broomberg, CEO
of Discovery Health has said that, as a leader it is important to include entire
workforce in the structure for success (Reporter, 2017). Various other businesses
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like ShopRite holdings, MTN Group, Bidvest and FirstRand have incorporated
diversity management (April, et al., 2012).
However, the concept needs to popularised more so that small and medium sized
companies also understand the importance of diversity management.
Reasons why diversity should be embraced
A diverse workforce is one which includes people from various backgrounds (April, et
al., 2012). Diversity in the workforce leads to better employee satisfaction. There are
various ethical and social considerations like equality and non discrimination which
make it important to embrace diversity. However, diversity in the workforce has other
benefits with financial rewards.
In a recent study by Gallup, a research and analytics company, it was revealed that
60% employees working for a diverse organisation felt that they were engaged in the
company processes (Gallup, 2019). However, the percentage of employees satisfied
and engaged was only 11% for low diversity companies.
Researches also feel that due to inclusion in a diverse workforce, employees feel
sense of belongingness leading to less absenteeism and more employee retention
(Hughes, 2014).
A company with a diverse profile attracts talent (Hughes, 2014). Research in the field
shows that educated and qualified candidates in all field feel attracted to companies
who have diverse workforce and inclusion in their structures.
It has been found that, a diverse organisation has greater knowledge capacity,
greater skill and more innovation expertise (Hughes, 2014). This is because a
diverse organisation has a larger pool of knowledge because of people from different
backgrounds (Laroche, 2013). Other benefits from embracing diversity in an
organisation are increase in skilled human resource, increase in efficiency and
productivity, financial growth and positive employer branding.
Negative impacts of not embracing diversity
Diversity in the workforce can result in many benefits for the organisation. However,
if a company does not embrace diversity in the modern business scenario it can face
many negative outcomes (Laroche, 2013). A company which does not include
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workforce from all backgrounds in its structure can be perceived as being
discriminatory (April, et al., 2012). This can result in regulatory actions on the
company. Additionally, non-inclusion of diversity can result in negative employer
bradding and propaganda against the company. New recruits can perceive this as a
negative aspect which can result in loss of skill and talent for the company.
In addition to the above, a company with no inclusion of diverse workforce will have
to deal with discontentment from internal staff (Laroche, 2013). Certain sections of
the staff may feel left out. This can lead to groupism and bias with in the ranks of the
company. Such internal discontent can lead to loss of productivity and efficiency.
This is turn can lead to financial loss for the company.
Therefore, in the modern age companies should seriously consider embracing
diversity for better financial gains.
Leadership initiatives which could lead to full diversity
The words and actions of business leaders can have a large impact on workplace
diversity (Lau Chin, 2014). Therefore, leaders can take various initiatives to improve
workplace diversity in their organisations.
Leaders should give attention to the ideas and thoughts of a greater number of
employees. Additionally, the leader should pay attention to the abilities of the
workforce irrespective of their background (Lau Chin, 2014). The leaders should
also make sure that they spend an equal time in discussing matters and monitoring
performance of people from diverse backgrounds and are not just focusing on one
group.
Another initiative that the leader can take to get full diversity is by spreading the
responsibilities evenly across the organisation (Lau Chin, 2014). The leader should
try to make people from all backgrounds visible in the efforts that they are taking for
the organisation.
The leaders should be open and objective about all complaints related to
discrimination and bias. They should focus on total non-discrimination. According to
Collin Welsh, CEO of Vero Moda, diversity and inclusion starts at the top (Lau Chin,
2014). Therefore, if the leaders will take initiatives at the top, they will be able to act
like role models whom other will also follow.
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Factors leading to diversity success
The major reason business organisations want to achieve diversity is the attainment
of equal opportunities and financial growth (Hughes, 2014). Following factors can
make diversity a success for organisations.
Organisational policies- The commitment of an organisation to diversity can be
judged by its policies and procedures. Having the right set of policies are key to
diversity success (Hughes, 2014). The organisation can succeed in diversity
management only if it is committed to equal opportunities in recruitment, hiring,
training, performance appraisal and promotions (Hughes, 2014). The company
should practice total non-discrimination to achieve adequate diversity in the
workforce.
Diversity training- The firm should conduct diversity training for all employees
where people are made to understand the importance of respecting people with
diverse backgrounds (Hughes, 2014). This will help in inculcating non-discrimination
and removing bias at middle and lower level of the organisation
Leadership commitment and action against non-compliers- The leadership
should include representatives from all backgrounds in all processes of the
organisation (Lau Chin, 2014).Strict code of conduct should be put in place so that
all employees abide by diversity management initiatives.
Therefore, these factors will help in implementation of diversity management in the
workplace.
Conclusion
Diverse workforce can help an organisation in attaining better performance results.
Therefore, large number of firms are adopting inclusion of diverse workforce in their
structures. However, there are still groups with in organisations who need to be
trained on its effectiveness. Therefore, more procedural and leadership initiatives are
required to enhance diversity in the workplace in South Africa and rest of the world.
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References
Amaram, D. I., 2011. Cultural diversity: Implications for workplace management.
Journal of Diversity Management, 2(6), pp. 1-6.
April, K., Ephraim, N. & Kai, P., 2012. Diversity management in South Africa:
Inclusion,. African Journal of Business Management, 6(4), pp. 1749-1759.
Gallup, 2019. Create a diverse and inclusive workplace - Gallup. [Online]
Available at: https://www.gallup.com/workplace/215939/diversity-inclusion.aspx
Hughes, C., 2014. Impact of Diversity on Organization and Career Development.
Pennsylvania, : IGI Global.
Joubert, Y. T., 2017. Workplace diversity in South Africa: Its qualities and
management. Journal of Psychology in Africa, 27(4), pp. 367-371.
Laroche, L., 2013. Danger and Opportunity: Bridging Cultural Diversity for
Competitive Advantage. New York: Routledge.
Lau Chin, J., 2014. Diversity and Leadership. London: SAGE Publications.
Mazibuko, J. V. & Govender, K. K., 2017. Exploring workplace diversity and
organisational effectiveness: A South African exploratory case study. SA Journal of
Human Resource Management, Volume 15, p. 10.
Mor Barak, M. E., 2013. Managing Diversity: Toward a Globally Inclusive Workplace.
London: Sage.
Reporter, S., 2017. How diverse is your workplace? You may be surprised at the
answer. City Press, 8 November.
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