In global scenario it is necessity for all the organizations to employ diversified workforces. Workforce diversity helps the organization in improving productivity and innovative performance. The workforce diversity and inclusion strategies are directly linked to innovative business; they encourage employees to have different perspectives and ideas which drive innovation. To deal with global challenges through innovative performance, organizations have robust programs and policies to recruit and retain diversified workforces. Through this chapter, the author addresses how workforce diversity is fostering innovation in contemporary organizations.
TopThe Concept Of Workforce Diversity
From the time of its evolution there is little argument in defining diversity among researchers and practitioners. In the words of Cox and Beale (1997) diversity is “a mix of people in one social system who have distinctly different socially group affiliations” (p.1).
In defining the term diversity much of the inertia was towards the differences of an individuals, whereas Thomas (1999), incorporate similarities as well as differences while defining diversity: “individuals who are different in some ways and similar in others” (p.5). With the increase in the interest of researchers, teachers in studying diversity in the context of an organization the term Workforce diversity is emerged which emphasized the requirement of new ways of interactions and communication among individuals and groups in an organization.
According to Robbins and Coulter (2018): “Workforce diversity can be defined as the ways in which people in organization are different form and similar to one another “(p.158). The workforce diversity often involved characteristics like race, ethnicity, gender, religion, age, ability and sexual orientation. The workforce diversity has challenges which needs to be managed by an organization; managing diversity effectively provides various benefits to an organization in global environment which assist them in gaining competitive advantage.
Robbins and Coulter (2018) enlists the benefits of diversity that organizations are experiencing from three perspectives. (See Table 1)
Table 1.
Benefits of workforce diversity
| Benefits of Workforce Diversity |
| People Management | Organization performance | Strategic |
I. Better use of employee talent
II. Increased quality of team problem-solving efforts
III. Ability to attract and retain employees of diverse backgrounds | I. Reduced costs associated with high turnover, absenteeism, and lawsuits
II. Enhanced problem-solving ability
III. Improved system flexibility | I. Increased understanding of the marketplace, which improves ability to better market to diverse consumers
II. Potential to improve sales growth and increase market share
III. Potential source of competitive advantage because of improved innovation efforts |
Source: Adopted from Robbins, S. P., Coulter, M., & Fernandez, A. (2018). Management (14th Ed.). Chennai, ID: Pearson India Education Services Pvt. Ltd. (p. 160).