The Impact of Diversity on Individual Behavior

The Impact of Diversity on Individual Behavior

The concept of diversity has broadened in scope in the recent past, evolving from the concept of mandated quotas and affirmative action, to the reality of a diverse workforce being capable of providing quantifiable business value. A variety of external factors have influenced the conceptual evolution of diversity within the workplace. For example, globalization of markets has provided the concept of diversity with an opportunity to demonstrate a clear competitive advantage. A native understanding of the cultural values, norms and business practices of a foreign market can give an organization a clear advantage over their competition. Another area where diversity offers advantages is in the area of innovation. It can be argued that "a multi-cultural workforce translates into a richer variety of approaches to work-related problems and processes. Such approaches, in turn, are conducive to innovation that raises business performance" (Rajan & Harris, 2003).

Another factor that contributes to the propagation of diversity as a practice in the workforce is the moral aspect to the concept. Many believe that, "(i)n a progressive society, all segments of the population should have a stake in its prosperity and equal access to its benefits, subject to the meritocratic belief that a job should go to the best qualified candidate, irrespective of personal identity" (Rajan & Harris, 2003). This value may have roots in the cultural upbringing of individual's within an organization. The concept of being measured and rewarded on the basis of hard work and accomplishments is a common theme in many societies.

The practice of diversity is evolving over time, and no one company has perfected their approach. Many times, organizations who boast strong diversity initiatives that address the diversity needs of a certain group are woefully inadequate in addressing the needs of others. Perhaps this is due to diversity having its roots in affirmative action initiatives, where "fair" treatment to specific groups was mandated. The fact remains that an organization is only as diversity-conscious as the individuals that make up the organization, and individual perspectives and values will ultimately drive the strength of diversity within that organization. An organization that emphasizes diversity as a core value is more likely to have team members that exhibit similar traits, both on and off the job.

A healthy corporate policy of gender diversity allows an organization the luxury of significantly expanding the pool of qualified resources at any given position. However, application of gender diversity is more than an easy way to expand the talent pool. Studies indicate that organizations with the most women in top leadership had a 35.1 percent higher return on equity and 34 percent higher total shareholder return than those in the bottom quarter (Feeney & Lewis, 2004). Further, it has been recognized that organizations with more women in leadership positions tend to be more open-minded and creative. Interestingly, these same organizations appear to exhibit the ability to resist the tendency to surround themselves with people "like" them. It can therefore be argued that an organization's perception of diversity affected individual perceptions, which in turn, made the organization stronger.

Interaction with resources of differing socioeconomic status can cultivate an uncomfortable environment. Those that reside in a perceived "higher level" may feel guilty about their good fortune, and those that have less may feel less than adequate, or that they are being looked down upon by others. Stereotypes, such as a perception about the quality of an individual's education, or their ability to interact socially, must be recognized for what they are, and exorcised from the thought processes of individuals in an organization. An organization that can successfully cultivate an environment that rises above these differences and dashes these perceptions may also be able to leverage the very diverse perspectives of these groups. Different socioeconomic levels are subject to factors, environments, and experiences that other levels may not experience. Those that understand the value of these differing perspectives, particularly in organizations dependent

on broadening their customer base, can leverage this knowledge for the good of the organization.

Perceptions surrounding the occupation of an individual can have a limiting or broadening affect on the effectiveness of an individual--depending on the perspective an organization takes regarding the value of their resources. For example, a resource that has spent his career as an engineer or technician may not be recognized for management skills or leadership talent that he possesses. This could be directly attributable to a corporate perception that technical people are typically capable of filling