Diversity Management and Equal Opportunities

Business Case Defined

To understand fully what the “business case for diversity management and equal opportunities” really is, it is important to know the meaning of business case. Business case pertains to a planned proposal for business change based on terms of costs and benefits. This is an initial requirement before a huge project is undertaken and is necessary for a number of project management processes.

The business case is expected to address the business need of the project. It must include the reason for undertaking the project, the perceived business advantages, options involved complete with the reasons behind choosing which option to carry out, the projected costs, risks and gap analysis.

Business Case for Diversity Management

The “business case for diversity” simply means that companies believes that employing a diverse workforce allow them to be in a position to understand the demographics of the customers they serve much better making them better able to thrive in the marketplace than companies that hire only a limited group of employee demographics. Also, a company that supports diversity of workforce is better able to address employee satisfaction and retention issues.

It is important to note that diversity in workforce means employing people without discrimination to gender, age and ethnic or racial backgrounds. Since globalization is the current overwhelming trend in business, diversity in the workplace is a better accepted and applied concept now more than ever.

The business case for diversity has been examined by a number of researchers and no research support was found to support the “diversity business case”. Also, in US companies are not allowed to hire on the basis of race or ethnicity for whatever profit reason it may be.

An important requirement of the business case is how a company uses its diversities. This is called inclusion. If the company has a diverse workforce yet the employer does not take advantage of the wide range of experience within his organization then it could not enjoy the advantages offered by background diversity.

Diversity issues change with time. Implementation of diversity is more often than not limited to the Human resources department. UK companies see it as a tool to a good economic case that enables them to reach new markets. Diversity then becomes an extra marketing tool to bring in new customers.

Diversity could either be superficial or deep-level. Superficial diversity refers to differences in gender, race and nationality. Deep-level refers to differences brought about by knowledge and cultural values. It is often noted that in a company setting increase interaction among a diverse workforce lessens the significance of superficial diversity and increases the importance of deep-level as the team learns how to function as a unit. According to studies, in deep level diversity, the informational diversity or the differences in knowledge contributes positive results to the performance while value diversity or differences in cultural views could lead to negative results.

Certain processes could have positive contribution to deep level informational diversity. One is the need to share unique views with others. In a group setting though, members tend to discuss what they have in common rather than their differences. In order to encourage sharing of unique knowledge, it is important to let the group know who has knowledge on certain things.

Also, instead of group information sharing, debate should be encouraged so as to allow members to challenge the ideas of other members. Processing deep information that way could lead to positive results.

Critics of business case for diversity believe that it is not effective because there is currently no published research that shows how surface-level diversity can improve the organization. Also, most research shows surface diversity to have no or even negative results to employees’ performance.

Legal Issues Surrounding Diversity

UK employers are cautioned in using “diversity programs” because no court has ever found programs to be enough reason to have hiring preferences. This is in compliance with anti-discrimination laws practised by UK companies. This forces UK companies to comply with diversity laws.

The Business Case for Equal Opportunity

The “business case for equal opportunity” strives to eliminate discrimination and harassment in the workplace in order to reap the following benefits: more productivity among employees, higher moral in the workplace, higher staff retention, reducing complaints and the time involve in resolving them and to make the company more appealing to employees.

According to Guy Russo, McDonald”s CEO, “commitment to Equal Opportunity makes good business sense because it ensures a company attracts and retains the best people. EO policy also provides confidence to employees that they will be treated fairly and receives equal access to opportunities.”

The business case for equal opportunity intends to create an environment where people are not excluded from activities on the basis of permanent traits such as race, disabilities, creed, religion, gender and others. The “business case for equal opportunity” must enable employees’ similar access to education, employment and health care. Also, employers are required to implement action plans that allow participation of minorities and women in the workplace. The “business case for equal opportunity” must provide an equal opportunity policy statement, analysis of the current work force, recognition of problem areas, creating goals and timetables for employment opportunities, particular action programs to address problem areas, promote community action programs, and creating an effective internal audit and reporting system.

To indicate that an employer practices equal employment opportunity, abbreviations such EOE or MFDV (or Male, Female, Disabled, Veteran) are added in job advertisements.

Critics of the “business case for equal opportunities” pointed out that methods of finding out if equal opportunity is carried out is not complete. Opportunity as a matter of fact is difficult to measure. In reality, equal opportunity in employment is considered to be present if people of similar abilities achieve similar results after doing similar amount of work.

Similarities of Business Case for Diversity Management and Equal Opportunities

Both “business case for diversity management and equal opportunities” aim to employ people without discrimination as to age, sex, race, creed and others. These thrusts are intended to maximize opportunities within the organization.

Business cases for both diversity management and equal opportunities must comply with the legal frameworks of the country like the anti-discrimination laws in the UK.

Both “business case for diversity management and equal opportunities” rely on the results of the implementation of business cases. A company that does not take advantage of its diversity or in the implementation of equal opportunities will not most likely reap its desired benefits in the end.

Both business case diversity and equal opportunity aims to promote positive results in employees’ performance.

Culture is an important emphasis to both business cases.

Emphasis in differences in cultural or informational views is considered important in business case diversity. While, business case for equal opportunities would much rather emphasize employee similarities.

Employee satisfaction and retention are important to both.

Differences

Diversity business case is sometimes used as a marketing tool to penetrate new market shares. Equal opportunity is a tool to achieve the best employees by providing a safe and equal social environment.

Business case diversity is more concerned of managing diversity to the company’s advantage. Business case equal opportunity is aimed to promote employees’ well-being.

Cooperation among employees is strongly encouraged in business case for equal opportunities. In business case diversity management, there is more to be gained if employees do not focus on common grounds but in their diversity of knowledge especially in informational diversity.

Business case for equal opportunities is more concerned with employee relations rather than contributions as practiced in business case diversity. Maintaining or promoting high morale among employees is an important tool to achieve equal opportunities for employees.