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EDI exam summary

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  • 4 april 2023
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  • 2022/2023
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Equity, Diversity, and Inclusion in The
Workplace
Week 1

Lecture 1: Introduction

Managing Diversity in Chinese and Indian Organizations
COOKE & SAINI
Diversity management (DM) has been recognized as one of the critical elements of business
success in the strategic human resource management (HRM) literature.

→ the objective is to create organizations in which members of all socio-cultural backgrounds
can contribute and achieve their full potential. It focuses on valuing people as unique
individuals.

However, DM as a management concept has hardly been heard of by most people in
developing countries (China and India) and even less featured in their management talks.

• Diversity in these countries may exist within a radically different historical, institutional,
social and cultural context and that organizations there have yet to realize the
strategic importance of managing a diverse workforce effectively to gain a
competitive edge,
• Low preference to DM may be linked to the low level of countervailing power
possessed by the disadvantageous groups in these countries

China and India are two rising economic powerhouses in the global economy with sustained
high growth rates. Multinational corporations (MNCs) are attracted to because of the cheaper
resources for production activities, and of the vast and diverse markets they possess.

• However they have a shortage of skilled/professional workforce and are increasingly
involved in a war for talents and DM has deployed by some as an important HR
initiative to attract and retain their talents.

RQ1: To what extent is the western approach to DM different from that of China and India in
terms of the DM concept, societal context, motives of DM?

RQ2: What are the key issues and challenges in DM from the management perspective?


RQ3: What are the management perceptions towards DM and how, if at all, is diversity
managed at the organizational level?

DM: the western approach

,The concept of managing diversity originates from the US as an HR intervention in the mid-
1980s. It is a response to demographic changes in the workplace (more immigrants and
women) as well as the customer/client base.

The CIPD defines diversity as: “valuing everyone as an individual – valuing people as
employees, customers and clients”

Three important reasons for managing diversity
1. Effective people management → developing new/enhanced products or services
2. Market competition → opening new markets
3. Corporate reputation → broadening an organization’s customer base

It also allows organizations to demonstrate their commitment to corporate social responsibility
(CSR) through engagement with local communities.

Diversity in China and India
Differences have been found in:

• The concept of diversity
• Political and sociocultural context under which diversity emerges
• The way diversity should be managed (process)
• The motive of managing and valuing diversity (intended outcome)

Western India China
Focus on DM includes Caste, religion and gender Rural/urban divide are the
gender, race, ethnicity, are the main sources of main sources
religion, age, disability, diversity
immigration status, social
class, political association,
marital status, parental
status, sexual orientation, ex-
offenders, education,
experience and so forth.

Inequality in the workplace
and society is often
accepted and internalized
without any serious
challenge.

Oriental societies : hierarchical societies (people are highly conscious of their status in the
social structure vs egalitarian in USA or democratic in Europe); collectivist cultures; social
harmony (group based equality over individual differences); endurance, diligence and
devotion to the organization

Methods
Qualitative, semi-structured interviews (pilot study for greater research)

Findings

, India China
Understanding of Indian managers are much more Most Chinese managers had not
DM familiar with the notion of diversity. heard of, nor thought about, the
They adopt a broader notion of concept of managing diversity –
managing diversity that may according to them, sources of
depart from the western literature. diversity come from gender, age
• Diversity has been part of and cultural diversity (MNCs).
their cultural history None of the Chinese firms have a
• Indian managers pointed formal HR policy or affirmative
out that in some cases, the action plan to promote gender
active promotion of an equality or diversity.
organizational policy in Discrimination against older and
DM may bring more rural-origin workers remains an
trouble than good to the issue.
workplace, as it intensifies
differences instead of
minimizing it.
Perceived They try to employ a large number Cultural diversity between
sources of of overseas graduate returnees, expatriates and local employees.
diversity but they claim to be demanding Cultural diversity from the Chinese
(cultural, regional and hard to train. overseas returnees who are keen
differences; Organizational changes and to work for and are favourite
organizational implementation of new business candidates of MCNs.
changes; multi- strategy. They try to employ a large number
level perspective) The outsourcing part of business. of overseas graduate returnees,
The new businesses are fast paced but they claim to be demanding
so they often value younger and hard to train.
workers more. South vs North China.
Took a multi-level perspective to Education of employees
managing diversity that included
diversity issues at global, regional
and operational levels.
DM practice More proactive and business- Felt that diversity was not an issue
oriented view towards the need → little need to manage it.
for DM in that they are aware of Managers insensitive to diversity
the implication of the need to issues → biased perception of
manage a diverse customer women.
community for HR practice. DM from problem solving POV,
No official DM policy instead of value adding.
Trans-organizational boundary
approach to highlighting the
importance of being engaged
with the diverse community to
understand employees’ diverse
needs outside and within the
workplace. → the blurred
boundary between family and
workplace and the less emphasis
on privacy in the Indian culture
makes the context for DM very
different from western
organizations
Perceived Seniority – age of employees and
challenges to DM organizational status of managers
→ younger employees cannot
challenge elder staff.

, Nature and location of the
business.

Barriers to implementing DM policy for MNCs
Managing diversity for MNCs appeared to be more challenging due to the contextual
differences and varying management priorities.

Issues on DM in MNCs:

• Limited efforts from the indigenous MNCs to establish an integrated corporate HR
strategy and DM policy
o Post-merger and acquisition (M&A) integration is the most challenging task due
to organizational culture differences (this was amplified when cross boarded
M&As take place between western and eastern countries)
o Cultural problems are further intensified when the senior managers come from
a third country, bringing with them yet another set of cultural values and
management styles.
• Foreign owned MNCs may encounter resistance from the host country in their DM
efforts
• Perceptions of work-life balance. Neither the Chinese nor India managers are
receptive to the idea of having a formal HR policy on flexible work arrangements for
employees.

Generally speaking, the findings confirmed that Chinese and India firms have not yet adopted
a systematic approach to managing HR.

Indian managers have been involved in people management and have the to devise their
own policy → prefer to grant employees’ requests discretely (individual-based (characteristic
of DM perspective) vs group-based (characteristic of equal opportunity perspective). On the
other hand, Chinese managers prefer to adopt an egalitarian approach to all employees to
avoid resentment of differential treatments and demand for the same.

Paternalism is salience in Asian cultures (relationship and indication of the quality of the
relationship between employees and managers) → authority; hierarchy; care; obedience;
loyalty and dependence.

Even though China and India share many similar societal cultures, they have distinct features
(political regimes, levels of education and economic development, gender policies etc.).

Managerial implications
Chinese and Indian organisations need to adopt a more systematic approach to managing
diversity as a social justice.

Western MNCs are likely to face additional challenges in implementing DM initiatives in
developing countries like China and India.

Chinese and Indian MNCs wishing to expand their operations in developed countries may
face additional challenges.

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