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Starting in the 1960s, organisations have been increasingly concerned with workplace
diversity and how to ensure as well as leverage diversity of their employee base. Diversity
management refers to actions taken by organisations to promote greater inclusion of minorities
into an organisation’s structure, achieved through the implementation of specific programs and
policies. This concept has emerged as a pivotal area of study within the realm of work and
organisations, addressing the complexities inherent in modern workplaces, where diversity
encompasses differences in race, gender, ethnicity, age, abilities, sexual orientation and more. In
today’s globalised world, fostering diversity is not just an ethical imperative but also a strategic
advantage for businesses. According to recent studies, companies with diverse workforces are
35% more likely to outperform their industry competitors. However, a proactive management of
diversity is necessary to reduce the negative side effects of diversity through cultural
interventions known as inclusion programs (Arkets Media, 2022).
Diversity management is one of the main challenges for Industrial and Organisational
psychologists, whose interventions in the workplace are focused on applying psychological
principles to improve work environments, inclusive of performance, communication,
professional satisfaction, and safety. For the work environment to be the best it can be, diversity
management is a crucial task for I-O psychologists because differences in culture shape how
individuals interact with the world and with each other and being able to manage diversity in the
workplace creates a more inclusive, productive, and safe environment for all employees. More
and more organisations are hiring specialists in the Work and Organisation Psychology field to
create organisation-wide policies and practices that ensure inclusion of all minorities while
minimising negative reactions from other employees.
Theoretical Points
Diversity management is grounded in several theoretical frameworks, including major
psychological theories (Social Identity Theory, Cognitive Diversity Hypothesis,
Similarity-attraction Paradigm, Justification-Suppression Model, Inclusive Leadership,
Affirmative Action), as well as state enforced laws to prohibit discrimination (Bulger, C.,
Schultz, D., Schultz, S., 2020).
Most theories relevant to diversity management focus on how individuals react to others who
they identify as different from themselves.
Social Identity Theory posits that an individual’s self-concept is in part derived from
perceived membership in one or more social groups, which in turn helps them define their
identities and shapes their daily interactions. Clearly this becomes a complicated process if the
group that one belongs to has been historically stigmatised. As Di Marco, Hoel and Lewis state
in their article, LGBT individuals and individuals belonging to other minority groups ‘‘might be
perceived as a threat by those defining and categorising themselves and their own group by
heteronormative norms and standards’’ (Di Marco, D., Hoel, H., & Lewis, D., 2021). This
cognitive divide causes conflict in the workplace and prevents cooperation between individuals
from minority groups and individuals from majority groups. Similarity-attraction paradigm is
related to Social Identity Theory, holding that individuals prefer interacting with others like
themselves, causing diversity in working groups to have a negative impact on efficiency.
The Cognitive Diversity Hypothesis suggests that having cultural diversity in the
workplace results in creative problem solving and innovation. Although research shows mixed
results, it seems to hint at the fact that homogeneous groups may show initial outperformance of
heterogeneous groups, but heterogeneous groups end up being more successful in the long run as
they benefit from multiple perspectives and ideas that result from cultural diversity (Bright, D.S.,
Cortes, A.H., 2019).
The Justification-suppression Model focuses on the conflict between expressing or
suppressing personal prejudices outwardly, depending on the social context and the expectations
coming from it. Individuals will search for justification for their prejudices and will openly
express them when social norms are weak or when they believe their biases will not be perceived
negatively. In a work environment in which inclusion and diversity is not the norm, individuals
will feel extremely comfortable expressing prejudices and discrimination against minorities.
Affirmative action is the practice or policy of lawmakers favouring individuals
belonging to groups regarded as disadvantaged or subject to discrimination, otherwise known as
positive discrimination (Oxford Dictionary, 2023). This practice aims at creating fair
opportunities for minorities, whether that be due to race, gender, or any other factor.
Some major state-enforced employment laws in the United States include the Civil Rights
Act, protecting classes based on sex, race, skin colour, religion and national origin, the Age
Discrimination in Employment, prohibiting employment discrimination based on age, and the
American with Disabilities Act, protecting classes of people with physical or mental disabilities.
Although these laws exist and are enforced, it is up to organisations to ensure the actual
implementation of the law via diversity policies in the hiring and career advancement of minority
employees. Quotas, a minimum percentage of a certain position that is to be given to a certain
gender or ethnicity, are one such way in which organisations ensure diversity. The aim of quotas
is to ensure that minority groups are not underrepresented at different hierarchical levels of
companies.
As organisations introduce policies complying with the Affirmative Action such as
quotas, they must be aware of potential negative effects of those strategies. In fact, these policies
tend to drive negative perception on the minority from the majority due to the assumption that
the system unfairly favours hiring and promoting of minority employees well beyond their
performance and merits, just to fulfil the achievement of the target quotas, de facto
disadvantaging the majority members.
As Furtado, Moreira and Mota state in their article, “quotas and Affirmative Action for
gender parity may create an atmosphere where women are not taken seriously”, creating an even
stronger negative bias towards the minority group (Furtado, J., Moreira, A., Mota, J., 2021).
Practical Applications
Practically, diversity management entails creating policies and practices that actively
integrate diverse perspectives, ensuring a supportive climate throughout the organisation, and
relational support (Di Marco, D., Hoel, H., & Lewis, D., 2021).
Diversity concerns permeate throughout an organisation’s culture, affecting interactions,
decision-making processes and ultimately, its reputation in the market. Organisations embracing
diversity management not only attract a diverse talent pool but also tend to have better employee
satisfaction and retention rates (Ganesh, K., 2023).
Organisations can start from implementing blind hiring practices to mitigate unconscious
biases. Removing identifying information from resumes or using structured interviews helps in
focusing solely on qualifications and skills. Additionally, ‘no-tolerance’ policies on bullying,
harassment and discrimination are always a good practice, meaning that these occurrences are
taken seriously and may lead to suspension or termination. Moreover, conducting workshops and
training programs on cultural competence, unconscious bias and inclusive communication also
aids in fostering awareness and understanding among employees. These programs sensitise
individuals to different cultures, thereby reducing biases and fostering a more inclusive
workplace culture. Lastly, implementing flexible work hours or remote work options
accommodates the needs of minority employees, especially those with family responsibilities or
disabilities.
An important drive of positive diversity management is diversity in leadership. Studies
show that despite the global workforce being the most diverse it has ever been, still only 6% of
CEOs of Fortune 500 companies are women, and 27% of CEOs are non-white (Bulger, C.,
Schultz, D., Schultz, S., 2020). Diversity in leadership can not only ensure representation but
also give top-down models of inclusion and success.
It must be added that although organisational culture is heavily shaped by management
and some would even define it as a strategic objective, the practical application of diversity
management extends beyond company policies and support. Di Marco, Hoel and Lewis
importantly mention that formal policies are often not enough, and enactment needs to be shown
on a daily basis for minorities to feel included and accepted and for majority employees to be
supportive of diversity practices. Companies should implement employee care for employees to
report any kind of issues (with the option to report anonymously) and a free mental health
service to provide support for all issues, including diversity related problems.
Conclusions
After analysing several sources including journal articles, textbooks, and interviews with
individuals in managerial positions from various companies, one main point stands out: in order
for diversity management to be truly effective and work, the organisation must be committed to
inclusion as well.
As shown in various studies, diversity not only breeds a more creative and varied
environment, but also increases organisations’ success in their respective fields. Although
diversity is necessary, it is important to acknowledge that – if not properly managed with a
cultural transformation – it can cause negative side effects in the workplace. As discussed above,
minorities that feel excluded in the workplace may show a lack of performance and sociability.
On the other hand, employees may not understand the purpose of having diversity in the
workplace and may purposefully exclude minorities and consider them not skilled enough to be
part of the workforce or advance in their careers.
It is important to clarify that diversity and inclusion, although interconnected concepts,
are very different from one another. Diversity focuses on the representation and makeup of the
workforce, while inclusion is how well the contributions, presence, and perspective of different
groups of people are valued and integrated into an environment (Bush, M., 2023). Inclusion is an
important part in diversity management as it ensures that individuals that are part of minorities
feel included by the majority in the workplace and can work to the best of their abilities, rather
than simply being a percentage to be fulfilled.
Inclusion can be worked on in conjunction with diversity management, and the first step
is representation both at entry level positions and managerial positions. This leads individuals of
minority groups to believe and know that, not only the company they are working for is
supporting a diverse pool of people, but also that it is possible and realistic for them to aim for
and achieve such positions.
The ultimate frontier of this goal is ensuring the same opportunities for all people, and
driving a culture in the work environment where everybody feels valued and can bring their best
skills and efforts to work every day. This can be achieved if organisations create an inclusive
culture, in which employees speak inclusively, teach leaders how to model inclusivity, and show
employee appreciation for all employees. Helping individuals feel included and part of the
organisation will boost productivity of all employees and attachment to the company, with
individuals increasing their work productivity and loyalty to the enterprise.
Embracing a diverse workforce not only reflects a commitment to equal opportunities but
also brings together a rich combination of perspectives, experiences, and talents. As companies
navigate the complexities of the globalised landscape, the recognition of the value inherent in
diversity becomes imperative for sustained growth and competitiveness. Although much
progress has been made, it is important to acknowledge that there is still work to be done to
ensure that diversity is not simply an item on a checklist. Management teams and psychologists
must continue to work together to implement inclusive policies, equitable practices and ongoing
training and education to promote organisation-wide diversity. Embracing diversity will not only
shape the future of the working world, but also contribute to a more interconnected, resilient, and
empathetic global community.
By Carlotta Menozzi
carlotta.menozzi01@icatt.it
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