Organizational Behavior (W102)

Group assignment
On

Does Diversity Ensure Equity and Inclusion?

Submitted to
Tanisha Bukth
Assistant Professor
Institute of Business Administration (IBA)
University of Dhaka

Submitted by
(Group: 01)
Towshif E Rabbi 11
Sarwar Hossain Khan 29
Baki Billah Siddiki 67
Rafin Tanzim 47
Sharmin Jahan Ima 101

May 08, 2023

Institute of Business Administration (IBA)
University of Dhaka
Diversity: More than just a buzzword
Diversity refers to the presence of multiple and varied identities, perspectives, and experiences within a
particular group, organization, or community. In academic literature, the concept of diversity has been
studied extensively in various fields, including sociology, psychology, and organizational behavior.

Cox (2014) defined diversity as “the full range of human differences that exist among people” (p. 8). The
author argued that diversity should be viewed as a strength rather than a liability and that organizations
should strive to create an inclusive environment where everyone feels valued and respected.

Another study by Jackson and Ruderman (1999) emphasized the need for a broad definition of diversity
that includes not only demographic differences but also differences in personality, values, and cognitive
styles. The authors argued that a diverse workforce can lead to improved problem-solving and creativity.

These benefits of diversity have been proven time after time, and the results are visible as well. According
to a report by the World Economic Forum (2020), companies leading their geography and industry for
diversity, equity, inclusion and belonging perform better than their market average across a wide range of
key performance metrics:

● Profitability: 25%-36% more likely to outperform on profitability (McKinsey, 2020)

● Innovation: Up to 20% higher rate of innovation (Deloitte, 2018) and 19% higher innovation

revenues (Lorenzo, 2018)

● Decision-making: Up to 30% greater ability of spotting and reducing business risks. (Deloitte,

2018)

● Employee engagement: Statistically significant causal relationship with engagement and retention,

for all employees (Deloitte, 2015)

Conversely, companies that fall behind their regional and industry peers in diversity, equity, inclusion and
belonging see a competitiveness penalty, being 29% less likely to achieve above-average profitability than
their market mean. (Mercer, 2019).

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The following image illustrates the benefits that having a diverse workforce can provide to the
organization, given that it is implemented within a proper culture which can bring about both equity and
inclusion.

A panacea or just one of many steps towards

equity and inclusion?
Diversity is defined as the “full spectrum of human differences.” But does diversity in workplace actually
ensure that they function well together? Does diversity actually ensure inclusion? The truth is that too many
companies make the mistake of assuming that diversity and inclusion are synonymous or that one
automatically implies the other. In fact, Gallup’s 2018 report “3 Requirements for a Diverse and Inclusive
Culture” highlights the importance of acknowledging Diversity and Inclusion as two very different
concepts. Diversity is merely the fact that people of different orientations are present together in a
workplace setting whereas inclusion means employees wholeheartedly identify and comply with their
workplace both in their attitudes and beliefs. And in no way does one ensure the other.

● According to Globalization Partners' 2020 global employee survey, Examining the Impact of

Diversity on Distributed Global Teams, 9 in 10 employees described their companies as diverse, yet
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 3 in 10 respondents said they don’t feel a sense of inclusion or belonging which had a negative
impact on employee engagement. (Pantinas, 2020)

● In an article called “The Real Reason Diversity is Lacking at the Top” the author tries to pinpoint

the reason why diversity doesn’t ensure inclusion and says that the root causes are often
underappreciated barriers to diversity. Efforts to increase diversity typically focus on recruiting
more people from different backgrounds but none of these efforts, nor firms’ performance
management systems, address the most significant obstacles that are blocking advancement and
retention. (Dean et al., 2021)

● Research called “How Companies Committed to Diverse Hiring Still Fail” sheds light to the hidden

fact that this technique might not be as effective in practice as it is in intention. It argues that even if
a company is committed to diversity inclusion, it might have hidden biases in its hiring strategies.
For example, socio-economic bias, gender bias etc. (Kessler & Low, 2021)

In order to reap the benefits of diversity, teams require inclusion. There is little value in having a diverse
mix of employees if the individuals do not feel comfortable bringing the unique, diverse aspects of their
selves to team meetings and work decisions. Moreover, a non-inclusive culture engenders a vicious cycle –
diverse employees fall off the track to senior leadership and management positions, leading to a paucity of
diverse role models, and a lower likelihood for companies to reap the benefits of diverse leadership. Bain.
(2019).

The risk of becoming a double-edged sword

Diversity without proper infrastructure and implementation not only fails to ensure equity and inclusion,
but also be harmful because it can lead to feelings of marginalization and exclusion among
underrepresented groups, which can in turn negatively impact their psychological and physical well-being.
According to a study by the National Bureau of Economic Research, increasing diversity without
addressing inclusion can lead to greater polarization and social conflict within organizations and
communities (Dobbin & Kalev, 2016). Additionally, a lack of inclusion can undermine the potential

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benefits of diversity in terms of creativity, innovation, and performance, as found in research by the Society
for Human Resource Management (SHRM) (Jackson & Ruderman, 1999).

Diversity has some drawbacks which

moderate its significant advantages. In
problem-solving situations,
extraordinary costs in time and
financial resources
Cultural Diversity in Organisational
Theory and Practice
10
can negate the benefits of synergy, and
can even degenerate into dysfunctional
conflicts. Diversity does not fare as
well under conditions of uncertainty
and
complexity which may lead to
confusion and frustration. Diversity
can make it
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harder to arrive at an agreement on a
particular course of action, and can
result
in negative dynamics and cultural
clashes that can create work
disadvantages
for women and minorities.
Traditionally, cultural conflicts
between majority
and minority group members are
usually resolved in favour of the
majority
groups. is, in turn, creates
significant barriers to full participation
by minority
members in potentially conflict
situations
In problem-solving situations, extraordinary costs in time and financial resources can negate the benefits of
synergy, and can even degenerate into dysfunctional conflicts. Diversity does not fare as well under
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conditions of uncertainty and complexity which may lead to confusion and frustration. Diversity can make
it harder to arrive at an agreement on a particular course of action, and can result in negative dynamics and
cultural clashes that can create work disadvantages for women and minorities. Traditionally, cultural
conflicts between majority and minority group members are usually resolved in favor of the majority
groups. This, in turn, creates significant barriers to full participation by minority members in potentially
conflict situations. (Henderson, L., & Henderson, J. 2014).

In an analysis of 151 work groups, (Tsui, Egan & O’Reilly, 1992) found diversity to be associated with
lower levels of psychological identification with group members which would tend to detract from overall
performance and result in adverse effects on organizational measures of productivity, absenteeism and
turnover. Homogenous groups have been reported to outperform culturally diverse groups especially where
there are serious communication issues which make it more difficult for everybody to make optimal
contributions to the group effort. Higher turnover and absenteeism are special problems identified with
multi-cultural organizations. In a study of twenty work units, (O’Reilly, Caldwell & Barnett, 1989)
concluded that heterogeneity in groups was associated with lower levels of group social integration which
resulted in higher individual turnover. They concluded that out-group members were more likely to leave
the organization.

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Moving towards better solutions
According to the leading diversity and inclusion advocate Verna Myers, diversity is like being invited to
the party- while inclusion is being asked to dance. While the former is certainly a prerequisite of the latter,
it is simple not enough on its own.

Diversity alone is not enough to ensure equity and inclusion in the workplace. Rather, it is one of many
factors that organizations must consider as they strive to create a culture that values and respects all
employees. By making intentional efforts to address systemic biases, create a culture of inclusion, and
ensure that all employees feel valued and respected, organizations can harness the power of diversity to
create a more engaged, productive, and innovative workforce. In doing so, they can not only benefit their
employees but also improve their bottom line and contribute to a more just and equitable society

the most important addition to reap the full benefits of a diverse workforce is to create a culture of inclusion
within the organization. (Tsui, 2015) This process is lengthy and is often met with passive resistance by
employees. However, there are some steps we can take to make the process smoother:

● Leadership Commitment: As in any transformation, change must start at the top. The senior

leadership team, including the CEO, must visibly and vocally support diversity and inclusion as
priorities of equal weight. This should be exemplified through their interactions with people,
explicated in formal policies and standards, and implied in decisions that incorporate the
feedback of others.

● Engage frontline leaders: In order to successfully change culture, it’s important to secure the

support of frontline leaders. These are the operational managers who oversee line employees,
and they must buy into the cultural shift.

● Ensure zero tolerance for anti-inclusive behaviour: Companies must make the explicit

determination that inclusion matters. In order to drive a zero-tolerance policy towards non-
inclusive behaviors, they must do the following. First, be clear and specific about the
organization’s expectations, and what behavior qualifies as undesirable. Second, publicize its
values, anti-discrimination and harassment policies, and code of conduct. Third, take all
complaints seriously; appoint people and establish systems to handle serious infractions. Lastly,

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 drive accountability and integrate inclusion as an important part of managers’ performance and
promotion evaluations.

● Measure and track: Companies must establish metrics to measure and track inclusion.

Questions on inclusion should be integrated into employee surveys, and the responses must be
used to identify problem areas that require attention and time. This data must inform rewards for
managers who promote an inclusive culture, and training for those who fail to meet the
company’s standards

Organizations must recognize the importance of Diversity along with its incompleteness without proper
implementation. In order to build an organizational culture that prioritizes inclusivity and equity, seeking
leadership support (both senior and frontline leaders), sharing best practices and standards, and using
inclusion-focused metrics are critical. Such a culture must be established at the top with the aid of
executive coaching, then cascaded to the frontline staff – enabling everyone to bring their whole and
authentic selves to work. Only then, we can hope to ensure equity and inclusion in the workplace.

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References
Cox, T. (2014). Cultural diversity in organizations: Theory, research, and practice. Berrett-Koehler
Publishers.

Jackson, S. E., & Ruderman, M. N. (1999). Diversity in work teams: Research paradigms for a changing
workplace. American Psychologist, 54(4), 595-603. https://doi.org/10.1037/0003-066x.54.4.595

World Economic Forum. (2019). Diversity, equity and inclusion 4.0: A toolkit for leaders to accelerate
social progress in the future of work. https://www.weforum.org/reports/diversity-equity-and-inclusion-4-0-
a-toolkit-for-leaders-to-accelerate-social-progress-in-the-future-of-work

McKinsey & Company. (2020). Diversity Wins: How inclusion matters.

https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-
matters#

Deloitte. (2018). Diversity and Inclusion Revolution: Eight Powerful Truths.

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/human-capital/deloitte-uk-diversity-and-
inclusion-revolution.pdf

Lorenzo, R., & Reeves, M. (2018). How and where diversity drives financial performance. Harvard
Business Review. https://hbr.org/2018/01/how-and-where-diversity-drives-financial-performance

Deloitte. (2015). The role of diversity practices and inclusion in promoting trust and employee engagement.
https://www2.deloitte.com/content/dam/Deloitte/at/Documents/about-deloitte/role-of-diversity-practices-
and-inclusion.pdf

RedThread Research & Mercer. (2019). Diversity & Inclusion Technology: The Rise of a Transformative
Market. https://www.mercer.com/content/dam/mercer/attachments/private/gl-20190617-diversity-
inclusion-tech.pdf

Pantinas, K. (2020, March 24). Global Teams Struggling to Feel Connected to HQ, According to New
Research by Globalization Partners. Retrieved from https://www.prnewswire.com/news-releases/global-
teams-struggling-to-feel-connected-to-hq-according-to-new-research-by-globalization-partners-
301028878.html
Dean, J., Rice, J., Williams, W., Pineros, B., Acosta, D., Pancham, I., & Snelgrove, M. (2021, May 26).
The real reason diversity is lacking at the top. BCG Global. Retrieved May 5, 2023, from
https://www.bcg.com/publications/2020/why-is-diversity-lacking-at-top-of-corporations

Kessler, J., & Low, C. (2021, September 17). Research: How companies committed to diverse hiring still
fail. Harvard Business Review. Retrieved May 5, 2023, from https://hbr.org/2021/02/research-how-
companies-committed-to-diverse-hiring-still-fail

Bain. (2019). Inclusion and Diversity in the UK Workplace. https://www.bain.com/inclusion-diversity-uk/

Dobbin, F., & Kalev, A. (2016). Why diversity programs fail. Harvard Business Review, 94(7/8), 52-60.
https://hbr.org/2016/07/why-diversity-programs-fail

Jackson, S. E., & Ruderman, M. N. (1999). Diversity in work teams: Research paradigms for a changing
workplace. American Psychologist, 54(4), 595-603. https://doi.org/10.1037/0003-066x.54.4.595

Henderson, L., & Henderson, J. (2014). Cultural diversity in organizational theory and practice. In
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actice

Tsui, A. S., Egan, T. D., & O'Reilly, C. A. (1992). Being different: Relational demography and
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O'Reilly, C. A., Caldwell, D. F., & Barnett, W. P. (1989). Work group demography, social integration, and
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Tsui, L., & O'Reilly, C. A. (2015). How can organizations promote inclusion to engage high-potential
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