CHAPTER 3 CONCEPTUAL AND THEORETICAL
3.7 THE NEED FOR DIVERSITY MANAGEMENT IN SOUTH AFRICA 149
The group is or will be engaging in an activity requiring inter-group co- operation.
The situation entails interdependence or superordinate goals.
Contact is more intimate than casual.
Authority and/ or the social climate promote inter-group contact.
Contact is pleasant and rewarding.
While Russel and Hayles‟s (1997) hypothesis was developed within the context of work on race and ethnicity, it is clearly applicable to other differences. Groups, teams, and work units play a vital role in furthering an organisation‟s diversity initiative. Honamura (1996:39) argues that by presenting positive models, testing new ideas, and formulating strategies that include rather than exclude, groups, teams and work units move the organisation forward in a way that is often impossible for individuals working independently.
policy which aims to ensure that South African institutions reflect the character of the country as a whole. Many business organisations are developing policies to correct this imbalance.
The second management issue with some political undertones is the question of economic empowerment. Pressure for the transfer of economic power is evident. The government is being blamed for not doing enough to make black economic empowerment.
The third management issue which surrounds the debate on managerial and economic transformation in South Africa is the quest for a new management philosophy. Activated by the affirmative and empowerment movements and supported by a rich diversity of articles, books and conference papers, this issue is challenging the theoretical foundations of South Africa‟s Euro- American-Asian management themes, approaches and practices. Based on the premise that the environment of organisations in developing countries is different from that of Western and Asian industrialised countries, management theories and practices developed in the developed-country context may have only limited applicability in the context of a developing country such as South Africa and for all purposes, a developing continent such as Africa.
Smit and Cronjé (1999:440) maintain that organisations in South Africa have generally not been highly successful in managing women and cultural diversity in the workplace. Proof of this is the fact that women and blacks in South Africa are clustered at the lower management levels. This indicates that they are not progressing and that their full potential is not utilised. Managing the issues of diversity and multiculturalism is crucial to organisational success. Stoner, Freeman and Gilbert (1995:198) identified the following six arguments which support the belief that managing diversity can improve organisational performance
Cost argument
As organisations become more diverse, the cost of a poor job integrating workers will increase. Those who handle this well will create cost advantages over those who do not.
Resource-acquisition argument
Companies develop reputations of favourability as prospective employers for women and ethnic minorities. Those with the best reputations for managing diversity will win the competition for the best personnel. As the labour pool shrinks and changes composition, this edge will become increasingly important.
Marketing argument
For multinational organisations, the insight and cultural sensitivity that members with roots in other countries bring to the marketing effort should improve those efforts in important ways. The same rationale applies to marketing to sub- populations within domestic operations.
Creativity argument
Diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of creativity.
Problem-solving argument
Heterogeneity in decision-making and problem-solving groups potentially produces better decisions through a wider range of perspectives and more thorough critical analysis of issues.
System flexibility argument
An implication of the multinational model for managing diversity is that the system will become less determinant, less standardised, and therefore more
fluid. The increased fluidity should create greater flexibility to react to environmental changes, that is, reactions should be faster and cost less.
Stoner, Freeman and Gilbert (1995:198) maintain that organisations who manage diversity and multiculturalism will have a competitive edge in the market, because it means higher morale and better relationships in the workplace. The presence of cultural and gender diversity in a group reduces the risk of
„groupthink‟, when people contribute freely to a discussion and moreover, the simple act of learning about other cultural practices enables organisations to expand their thinking about other things as well (Stoner, Freeman & Gilbert 1995:199). South African organisations can benefit from broadening their thinking on the advantages of diversity management by adhering to and enforcing practices and policies to ensure a healthy climate for diversity. Management may create a climate where feedback on appropriate and inappropriate behaviour is the norm. Management must lead by example. Most diversity work would fail or stagnate because the organisation‟s leaders do not visibly support the work.
Robbins (2005:170) maintains that leaders must adapt their style to different national cultures, as well as to the unique cultural aspects of the country.
Robbins (2005:170) further states that leadership plays a central part in understanding group behaviour, because it is the leader who usually provides direction towards goal attainmentand therefore, a more accurate predictive capability should be valuable in improving group performance. Van Zyl (2009:115) states that the diversity change process would produce results when the goals and efforts of the teams and individuals in the organisation are in alignment and when there is strong leadership and supportive system that will be able to move the entire organisation forward.
While many of the issues surrounding diversity have been around for some time, many organisations adopt a renewed concern as new trends in the workplace are surfacing. Organisations in South Africa are becoming increasingly diverse along many different dimensions. Figure 3.3 illustrates some of the
trends and changes that are influencing thinking about diversity management in South African organisations
Figure 3.3 Trends and changes that influence thinking about diversity management in organisations
Source Griffin 1993 : 577.
The single biggest challenge surrounding the issue of diversity and multicultural management is the changing composition of the labour force. Griffin (1993:578) maintains that changing demographics in the labour force, together with legislation on affirmative action, are major forces contributing to increased diversity. Griffin (1993:578) further states that another factor contributing to increased diversity in organisations is the globalisation of business. More and more organisations are entering the international marketplace, including South African organisations moving into Africa. This means that managers must develop new skills and awareness to handle the unique challenges of diversity.
Changing Demographics in the
Labour force
The Globalisation Movement
Legislation and Legal Action
Increasing Diversity in Organisations
Increased Awareness that Diversity Improves the quality
of the Workforce