STRATEGIC
HUMAN CAPITAL
MANAGEMENT
▪ Human Resource Management, Dressler,
G., Pearson Education.
▪ Fundamentals of Human Resource
Management, Noe, R.A., Hollenbeck, J.R.,
Gerhart, B., & Wright, P.M., McGraw Hill
Education.
▪ Strategic Human Resource Management,
Armstrong, M., Kogan Page.
11
MANAGING DIVERSITY
Learning Objectives (LO)
▪ Understand the concept of diversity and inclusion.
▪ Explain the aspects of diversity.
▪ Understand the important of diversity and generational differences.
▪ Describe the diversity biases.
▪ Understand the steps in managing diversity effectively.
▪ Explain the diversity and inclusion strategy.
INTRODUCTION
Diversity and Inclusion
Things are different today – not only about
race anymore.
What do you see from
this picture?
Diversity and Inclusion
INTRODUCTION
What information does management provide to the board on company practices,
strategy, and performance related to diversity, equity, and inclusion?
Compared to our 2020 survey results, all market caps reported more information being provided to the
board on diversity and inclusion strategy and related progress. In 2021, 88% of public companies
provided such information, versus 64% in 2020. In 2021, just 3% reported providing no DEI information
to the board (representing 13% small-caps and 3% mid-caps), compared to 12% in 2020.
Source: Deloitte Board Practices Quarterly
Which of the following actions has your company and/or board taken—or intends to
take—in response to the widely publicized events of 2020 and ongoing developments
surrounding racial inequality and inequity?
Diversity
and
Inclusion
Source: Deloitte Board Practices
Quarterly
INTRODUCTION
Diversity and Inclusion
▪ Diversity refers to the differences between people – ‘the mix’. Diversity is
what you have.
▪ Inclusion is the deliberate act of welcoming diversity and creating an
environment where different kinds of people can thrive and succeed. Inclusion
is what you do about it. But you need to pay attention to both diversity
and inclusion.
▪ Managing diversity involves ensuring, through recruitment, talent
management, and learning and development policies and practices, that the
right sort of mix exists in the organization and that the skills and
abilities of typically underrepresented or marginalized groups are
actively appreciated.
▪ Managing inclusion means ensuring that members of each part of that
mix feel that they are treated the same in such terms as the work they do, the
rewards they get for doing that work and the opportunity to learn and develop.
Diversity and Inclusion
The following are the definitions
produced by the Chartered Institute of
Personnel and Development (2019: 2):
▪ Diversity refers to demographic
differences of a group.
▪ Inclusion is the extent to which everyone
at work, regardless of their background,
identity or circumstance, feels valued,
accepted and supported to succeed at work.
Aspects of Diversity
INTRODUCTION
▪ Age (generational differences)
▪ Religion
▪ Race
▪ Gender
▪ Sexual Orientation
▪ Education
▪ Job Title, Function, Skills
▪ Disability
▪ Marital Status
▪ Language
▪ Etc.
Why is it Important to Understand Diversity?
INTRODUCTION
Diversity is more than just tolerating differences.
It is:
• Respecting, appreciating, and understanding the varying
characteristics of individuals.
• Everyone is unique and no single person is a representative of a certain
group. Stereotypes and other racial biases/prejudices are damaging to
a business.
Understanf that there are now four generations in the workplace
with difference:
• Expectations
• Motivations An understanding of these generational differences can equip one to
• Attitudes handle workplace situations with increased insight.
• Behaviors
What are the generations in your organization?
How they differ:
• Preferred leadership approach
• Communication styles. Motivational buttons.
• How they interact with others
• Preferred approach to feedback
• Work Vs Personal Life
• Desired rewards
• Financial behaviors
• Relationship with technology
• Expectations.
Benefits of Understanding Generational
Differences
• More effective communication
• Less misunderstandings
• Increased recruitment and employee retention
• More effective motivational methods
• Better-formed expectations
• Increased productivity and teamwork.
ConsequencesINTRODUCTION
of Not Managing Diversity
• Discrimination <diskriminasi>
• Breeds narrow-mindedness <menumbuhkan pikiran sempit>
• Impairs employee moral <merusak moral karyawan>
• Strains employee relationships <meregangkan hubungan karyawan>
• Damages productivity <merusak produktivitas>
• …………………………
• …………………………
• …………………………
• …………………………
• …………………………
• …………………………
• …………………………
INTRODUCTION
Diversity Biases
➢ Assumptions of seniority
• I am better than you
➢ Assumptions of correctness
• This is the way it should be
➢ Assumptions of universality
• We are all the same. Everybody is just like me.
Group Discussion – 15 Minutes
▪ What words describe the attitude to diversity in your
organization?
▪ List 5 personal commitment action goal for dealing with
discriminatory behavior at work!
Managing Diversity
INTRODUCTION
▪ The organization is diverse by default, and now it must deal with it.
▪ Effectively managing diversity can improve organizational
effectiveness.
▪ When managers commit to diversity, it legitimizes diversity effort of
others.
▪ Promoting a nondiscriminatory workplace environment.
▪ Research suggests slight differences in treatment can cumulate and
result in major disparities over time.
Top management commitment and rewards for the support of diversity
are critical ingredients for the success of diversity management
initiatives.
INTRODUCTION
The Challenges of Workplace Diversity
▪ The challenge lies in the continuous
improvement of the integration and social
acceptance of people from different
backgrounds.
▪ Our differing human characteristics
influence the way we think, act, interact, and
make choices.
▪ Often, these differences interfere with our
ability to support, trust, and respect each
other, and thus to effectively function
together.
Diversity and Inclusion Strategy
INTRODUCTION
The CIPD (2019: 20) confirmed that the strategy should be concerned
with both diversity and inclusion:
▪ A core part of organizational inclusion is the presence of policies and
commitment to diversity which needs to recognize that some groups
typically face higher levels of discrimination at work or barriers to
inclusion.
▪ This means that a two-pronged approach needs to be taken.
▪ Policies might need to be adapted or targeted for the needs of a
particular group, recognizing the unique needs of individuals.
Diversity and Inclusion Strategy
INTRODUCTION
The purpose of the strategy should be to ensure that cultural and
individual differences in the workplace are acknowledged, the different
qualities which people bring to their jobs are valued and people with
different backgrounds are included as part of the organization on the same
terms as everyone else. It should:
▪ acknowledge cultural and individual differences in the workplace and the need
to value the different qualities which people bring to their jobs;
▪ focus on fairness so that merit, competence and potential are the basis for
recruitment, promotion and development decisions and for reviews and
assessments of performance;
▪ ensure that everyone is alert to the influence of conscious and unconscious biases
when dealing with people;
▪ pursue steps to achieve inclusion so that people with different backgrounds and
characteristics feel part of the same organization and are not treated differently
because of their background or characteristics;
Diversity and Inclusion Strategy
INTRODUCTION
▪ generally promote to everyone the organization’s commitment to managing
diversity and inclusion and how it is proposed to put that commitment into
effect;
▪ provide guidance, advice and, as necessary, training to managers and team
leaders on how to achieve inclusion and avoid bias.
Has your company included one or more DEI metrics in its
executive incentive plans?
Although most respondents (65%) reported their company has not included one or more DEI metrics in its executive incentive
plans, more than 40% say they are considering it.
Among large-cap respondents, 25% report that their executive incentive plans include at least one qualitative DEI metric; this is
16% for midcaps. Inclusion of quantitative DEI metrics is 17% and 8% for large- and mid-caps, respectively. Where such metrics
are included, they most commonly appear in short-term incentive plans. 31% of large- and 51% of mid-caps do not include
these but are considering doing so.
Among small-caps, none reported having DEI metrics included in their incentive plans; 29% are considering doing so, and 57%
reported this is not currently under consideration
Source: Deloitte Board Practices Quarterly
