Chapter 12

Strategic Diversity
• Explore the development from equal
  opportunities to managing diversity
• Understand the role of the law in managing
• Explore the concept of diversity
• Evaluate barriers to diversity, including
  prejudice, stereotyping and institutional racism
• Identify business benefits of diversity
• Explore the link between strategic business
  development and effective diversity
                                      The Law
•   The Equal Pay Act 1970 addressing the inequality between genders in relation to pay and
    contractual terms
•   The Sex Discrimination Act 1975 addressing discrimination relating to gender and marital status
•   The Race Relations Act 1976 addressing discrimination on the grounds of race, nationality and
    ethnic origin
•   The Trade Union and Labour Relations (Consolidation) Act 1992 prohibiting discrimination
    against an individual on the grounds of trade union membership or non-membership
•   The Disability Discrimination Act 1995 addressing the issue of discrimination on the grounds of
•   The Sex Discrimination (Gender Reassignment) Regulations 1999 addressing the issue of
    discrimination on the grounds of trans-sexuality
•   The Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000
    conferring the right to equality of treatment to part-time workers as compared with equivalent full-
    time workers engaged on the same type of contract
•   The Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002
    conferring the right to equality of treatment to fixed-term employees as compared with equivalent
    permanent employees.
•   The Employment Equality (Sexual Orientation) Regulations 2003 protecting people against
    discriminatory treatment on grounds of sexual orientation, whether gay, lesbian, bisexual or
•   The Employment Equality (Religion or Belief) Regulations 2003 prohibiting discrimination on
    grounds of religion or belief
•   The Employment Equality (Age) Regulations 2006 prohibiting discrimination on grounds of age
           Strands of the Law
•   Direct discrimination
•   Indirect discrimination
•   Victimisation
•   Harassment
•   Positive action
          Types of Diversity
• Social category diversity – relating to
  differences in demographic characteristics
  such as age and race
• Informational diversity – relating to
  differences in background such as
  education and knowledge
• Value diversity – relating to differences in
  personality and attitudes
     Two Models of Diversity
• Human capital perspective
• Social justice perspective
        Barriers to Diversity
• Prejudice
• Stereotyping
• Discrimination
    Evidence of Discrimination
• Women workers are concentrated in low-
  paid, service sector and poorly organised
  industries and part-time work
• Black workers face disadvantage in the
  workplace and much higher
  unemployment rates than white workers
• Workplaces are organised for those
  without disability and as a result preclude
  many disabled people
     Why Do Differences Occur?
•   Stereotyped jobs
•   Jobs of parents
•   Flexibility of working
•   Aptitude
•   Roles in society
•   Discrimination
               Group Factors
•   Group loyalty
•   ‘In group’ and ‘out group’
•   Social identity
•   Equal chance
•   Equal access
•   Equal share
• Instrumental conditioning
• Classical conditioning
• Observational conditioning
   Proven Benefits of Diversity
• Easier to recruit scarce talent
• Reduction of absenteeism and turnover
• Enhanced organisational flexibility
   Indirect Benefits of Diversity
• Improved job satisfaction and morale
• Better relations between different groups
  of workers
• Greater productivity
• Better public image
• Competitive advantage
    Debatable Benefits of Diversity
•   Boosted team creativity and innovation
•   Improved team problem solving
•   Better team decision-making
•   Improved quality
•   Improved customer service, especially to
    minority cultures
              Impacts of Conflict
•   employee frustration
•   deteriorating interpersonal relationships
•   low morale
•   poor performance, resulting in lower productivity and / or
    a poorer quality to output or service
•   disciplinary problems, including poor performance by
•   resignation and the loss of good staff
•   increased employee absenteeism
•   withdrawal of employee goodwill
•   resistance to change
           Diversity in Practice
•   Customer focus
•   Innovation, creativity and learning
•   Business process improvement
•   The financial bottom line

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