Workplace Diversity: Benefits, Theories, Policies, and Practices

This report provides a comprehensive overview of workplace diversity, exploring its multifaceted dimensions within the realm of leadership and management. It begins by elucidating the significant benefits of a diverse workforce, emphasizing the positive impacts on organizational performance, employee morale, and talent acquisition. The report then delves into contemporary diversity theories, specifically the resource-based and institutional theories, offering insights into how these frameworks shape organizational structures and employee behaviors. A detailed examination of the meaning of workplace diversity follows, encompassing various aspects such as differences in beliefs, ethnicity, gender, and other unique individual characteristics. The report then addresses the development of diversity policies, highlighting the importance of national standards, codes of practice, and relevant legislation, including anti-discrimination laws and human rights acts. Furthermore, it identifies organizational practices that can be linked to diversity, such as mentorship programs, international career opportunities, and flexible work arrangements. The report also sheds light on the barriers to diversity, analyzing their impact on employee performance, and reviews key pieces of legislation in Australia advocating for diversity. The report concludes by outlining strategies for promoting diversity in the workplace, including diversity training, inclusive hiring practices, and the establishment of diversity committees, as well as detailing steps for effective policy implementation and review. This report is a valuable resource for students seeking to understand and promote diversity in the workplace.

Running head: LEADERSHIP AND MANAGEMENT 1
LEADERSHIP AND MANAGEMENT
Name of Student
Institution Affiliation

LEADERSHIP AND MANAGEMENT 2
DIVERSITY AT THE WORKPLACE
Question 1: Benefits of diversity
With the shift in human resources demographics and the emergence of global markets,
diversity has become a necessity in business organizations. It does not only benefit employees
but also the organization, employers and organization’s brand. Having onboard employees with
diverse background offers an organization a wide range of skills, experiences, and talents that
may have a positive impact on an organization and its performance (Deering, 2019). Also, a wide
range of skills also means that employees can learn from each other. Workplace inclusivity also
improves the morale of employees, therefore, making them more productive. On the same note,
an organization where diversity is encouraged is likely to attract a wide range of applicants,
which will grow its talent pool. Finally hiring employees who speak different languages makes it
easier for organizations to expand their operations in the global sphere and improves its client
base (Deering, 2019). By improving the range of skills, improving workplace relations and
employee morale and productivity, diversity improves organizational reputation, productivity,
and long-term success.
Question 2: Contemporary diversity theory
Contemporary diversity is based on two broad theories namely resource-based theory of
diversity management and Institutional theory of diversity management. An institutional theory
of diversity management recognizes that the social environment of an organization cannot be left
out in the determination of an organization structure. Based on this theory, it is important to
understand that organizations and behavior of employees within the organization have limiting
factors such as professional and social norms, regulations, rules, law, and legislation. Also,
according to this theory organizations tend to develop similar structures because similar

LEADERSHIP AND MANAGEMENT 3
regulations and norms hold them. On the same note, conformity to these norms demonstrates the
willingness of organizations to remain consistent with the norms. Finally, compliance also
legitimizes their operations(Cox,2019).
On the other hand, the resource-based theory of diversity management considers the
impact of diversity on an organization’s corporate capital, human capital, financial capital and
physical capital resources. Organizational operations can be facilitated or inhibited by the
availability or unavailability of resources. Based on this theory, diverse organizations have more
advantage compared to a less diverse organization. Also, having racial diversity in an
organization facilitates innovation and growth, therefore, increasing the financial performance of
an organization (Cox, 2019). Diversity theories can create a positive culture within an
organization, minimize employee turnover and promote long-term profitability and
competitiveness of an organization.
Question 3: Meaning of diversity at the workplace
Workplace diversity refers to the differences existing among the human resources of an
organization. It includes both how others perceive individuals and how individuals perceive
themselves. It encompasses differences in physical and mental conditions, beliefs, citizenship
status, sexual orientation, religion, age, practices, ethnicity, gender, traditions, and race. Also,
diversity also entails other unique differences among individuals (Dyson, 2017).
Question 4: Development of diversity policies
The development of diversity policies is based on various national standards, codes of
practice and legislation. Among them is the Anti-discrimination equal opportunities at the
workplace laws are applied at both the national and state levels. These laws require employers to

LEADERSHIP AND MANAGEMENT 4
create a workplace that is free from harassment and discrimination. Additionally, they are also
based on human right laws which require all individuals to be treated fairly as provided by
Australian human right commission act 1986 (Syed & Kramar,2009).In addition, it might also be
based on national standards provided under the National Employment standards (Fair Work
Ombudsman,2019). Finally, the development of diversity policies might also be based on the Australian
sexual harassment code of practice which roots for the elimination of sexual harassment, harassment at
the workplace (Humanrights.gov.au, 2019).
Question 5: Organizational practices/operations that can be linked to diversity
Mentorship of new employees of high potential
Through identification of high potential employees and mentoring them through formal
mentorship programs, organizations can thrive in diversity management. Through this practice,
organizations can create a diverse pool of future leaders from different sexual orientations,
genders, races, values, and cultures. Therefore, the mentorship of new employees enhances the
ability of future leaders to root for diversity at the workplace (Dutton, 2014).
Provision of opportunities for international careers
International careers involve working and living in multiple countries. The practice of
assigning employees international assignments exposes them to different cultural values and
practices. In addition, it offers them a life-changing experience, which they can use to transform
their workplace on matters diversity (Dutton,2014).
Flexible work arrangements
A flexible work arrangement is based on the understanding that employees have different
needs. Likewise, a flexible work arrangement is a manifestation of justice and fairness values.
Flexible work arrangements include practices such as job-sharing, compressed workweek, part-
time schedules and modification of job end and start times (Dutton, 2014). Therefore, it allows

LEADERSHIP AND MANAGEMENT 5
employees to carry out their professional responsibilities and meet their personal and family
commitments.
Question 6: Barriers to diversity and their impact on employees
Barrier Impact on employee performance
Informal Mentorship Informal mentorship can make some
employees feel excluded from matters of
career development. It can, therefore, hurt
employee productivity (Holder, 2019).
Communication barriers Communication barriers among a diverse
workforce can make employees less effective
when working in teams.
In addition, it can also affect their ability to
express themselves (Lumen, 2019). It can,
therefore, affect their productivity negatively
Wage equity Unequal distribution of wages is a big
impediment to diversity at the workplace.
Glass ceiling particularly occurs at the top
level. It makes it impossible for employees
from minority backgrounds to achieve
executive positions. This can, therefore, have
a negative impact on employee productivity
(Lumen, 2019).

LEADERSHIP AND MANAGEMENT 6
Question 7: Pieces of Legislation advocating for diversity in Australia
Age Discrimination Act of 2004
Age discrimination act serves the purpose of ensuring that people are not treated unfairly
because of their age in education, employment, provision of services and goods, and in the
administration of Commonwealth programs and laws (Australian Human Rights
Commission,2019).
Disability Discrimination Act 1992
One of the objectives of this legislation is to do away with discrimination against the
disabled. In addition, It also serves the purpose of enhancing community acceptance of the fact
that the disabled have similar fundamental rights to the rest of the society’s membership. Finally,
the legislation is also meant to ensure that disabled people enjoy similar equality rights to other
members of the community before the law (Australian Human Rights Commission, 2019).
Racial discrimination Act 1975
Sex discrimination seeks to eliminate all forms of sex discrimination in Australia. Its
objectives include the promotion of equality for all persons before the law irrespective of their
ethnic or national origin, color and race. Similarly, it seeks to outlaw discrimination of people
based on their ethnic origin, nationality, descent, color and race (Australian Human Rights
Commission, 2019).
Sex Discrimination Act 1984
Sex discrimination Act OF 1984 seeks to eliminate all forms of discrimination against
women. One of Its objectives is the promotion of equality between men and women. On the
same note, it also roots for the elimination of discrimination based on family responsibilities,
pregnancy, marital status or sex. Finally, it seeks to eliminate sexual harassment in delivery of

LEADERSHIP AND MANAGEMENT 7
Commonwealth programs, in accommodation provision, the delivery of goods and services, in
learning institutions and at work (Australian Human Rights Commission, 2019).
Question 8: Benefits of Diversity at the workplace
Workplace diversity brings various benefits for individuals and organizations. One of these benefits is
the availability of a variety of skills and talents within an organization brought by individuals from
different backgrounds. Also, bringing together people from different backgrounds and individuals with
different skills may stimulate innovation. Thirdly, workplace diversity makes it possible for organizations
to attract a large pool of applicants for their vacant positions. Finally, working in an environment where
individual differences are appreciated may have a positive impact on employee’s productivity and
performance (Deering, 2019).
Question 9: Promotion of diversity at the workplace
Strategy to promote
diversity in the workplace
Benefits to employees Benefits to the organization
Diversity training- through
diversity training employees
becomes aware of the
importance of diversity at the
workplace. It also makes
them aware of what
constitutes a diverse
workplace (Gentry, 2019).
It improves their ability to
relate with employees from
various cultural backgrounds.
It improves their awareness
on the importance of diversity
at the workplace
Improves relations within the
organization
Additionally, diversity
Improves organizational
reputation (Gentry, 2019).
Including diversity in hiring
and selection processes
It gives equal opportunity to
applicants irrespective of
Organizations can hire and
retain employees with

LEADERSHIP AND MANAGEMENT 8
their cultural background
It allows employees to relate
with people from different
cultures, therefore, enhancing
their cultural awareness
(Johnsen, 2014).
different skills, attributes, and
talents.
Having in place a diversity
committee- A standup
committee representing all
levels of the organization
would play an important role
in the realization of the goals
of an organizational diversity
program. This committee
would be responsible for
programs such as community
outreach, creation of
employee resource groups
and workplace affinity
(Johnsen, 2014).
Improve employee sense of
belonging
Improve employee
productivity.
Improve organizational
productivity
Minimize employee turnover

LEADERSHIP AND MANAGEMENT 9
Question 10: Implementation and reviewing of
Diversity policy
Diversity policy may be implemented by following these steps.
Training and sensitizing employees
Changing employee’s mindset through cultural sensitivity training, awareness creation
and education is an important component of successful implementation of a diversity policy.
This is important to eliminate possible resistance from employees, top management or middle
management (Nandy, 2017).
Understanding how various elements of diversity fit within the organization DNA
Based on the organization’s requirements and unique factors various types of diversities
might be required. Some of the diversities that might be required by organizations include
cultural and gender diversity. Appropriate diversity strategy might be influenced by the
capabilities and skills required, clients involved and the nature of business. Understanding the
needs of an organization would, therefore, facilitate the adoption of an appropriate diversity
strategy(Nandy, 2017).
Diversifying for long-term goals
Based on the fact that diversity cannot be successfully incorporated in an organization
overnight, long term goals need to be created. It would, therefore, be necessary to start the
diversity program several months before recruitment of employees to make it effective. Long-
term goals might include continuous training of employees, changing the structure of the
organization to enable the recruitment of people with disabilities among other considerations
(Nandy, 2017).
Inclusion of organizations stakeholders

LEADERSHIP AND MANAGEMENT 10
The success of the implementation is also dependent on the level of inclusion within the
organization. There is a need to include the business department and all other elements of an
organization. Inclusion enhances the understanding of the diversity policies across the
organization, therefore, making it easier to implement (Nandy, 2017).
Reviewing the policy
For successful implementation, frequent reviewing of policy implementation is a
necessity. The reviewing process should be mapped against the initial objectives of the
implementation to facilitate timely correction of any deviations. The top management in
collaboration with other stakeholders should lead it (Nandy, 2017).
References

LEADERSHIP AND MANAGEMENT 11
Australian Human Rights Commission. (2019). Legislation | Australian Human Rights
Commission. Retrieved from
https://www.humanrights.gov.au/our-work/legal/legislation#Age
Cox, T. (2019). Theories of Managing Diversity. Retrieved from
https://brownkutschenkovargo.weebly.com/theories-of-managing-diversity.html
Dyson, E. (2017). Managing Diversity in the Workplace | Diversity | PeopleScout. Retrieved from
https://www.peoplescout.com/getting-right-understanding-managing-diversity-in-workplace/
Deering, S. (2019). What Are the Benefits of Diversity in the Workplace? Retrieved from
https://theundercoverrecruiter.com/benefits-diversity-workplace/
Dutton, S. (2014). 5 Ways To Encourage Workplace Diversity. Retrieved from
https://www.digitalistmag.com/lob/human-resources/2014/02/20/5-ways-encourage-
workplace-diversity-01244734
Fair Work Ombudsman. (2019). Welcome to the Fair Work Ombudsman website. Retrieved from
https://www.fairwork.gov.au/employee-entitlements/national-employment-standards
Gentry, T. (2019). Top 5 Strategies for Promoting Diversity in the Workplace - Thrive Global.
Retrieved from https://thriveglobal.com/stories/top-5-strategies-for-promoting-diversity-
in-the-workplace/
Holder, N. (2019). Find Market Research Companies, Facilities, Jobs, Articles, More |
Quirks.com. Retrieved from https://www.quirks.com/articles/top-5-barriers-to-diversity-
and-inclusion-in-your-organization
Humanrights.gov.au. (2019). Sexual Harassment in the Workplace - A Short Guide to the Sexual
Harassment Code of Practice | Australian Human Rights Commission. Retrieved from
https://www.humanrights.gov.au/publications/sexual-harassment-workplace-short-guide-sexual-
harassment-code-practice

LEADERSHIP AND MANAGEMENT 12
Johnsen, J. (2014). 5 Strategies for Promoting Workplace Diversity. Retrieved from
https://upstatebusinessjournal.com/5-strategies-promoting-workplace-diversity/
Lumen. (2019). Challenges to Achieving Diversity | Boundless Management. Retrieved from
https://courses.lumenlearning.com/boundless-management/chapter/challenges-to-
achieving-diversity/
Nandy, P. (2017). Five key steps to implementing a successful diversity program. Retrieved from
https://www.insidehr.com.au/5-steps-diversity-program/
Syed, J., & Kramar, R. (2009). What is the Australian model for managing cultural diversity?. Personnel
Review, 39(1), 96-115.