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18,7/8 Managing the diversified team:
challenges and strategies for
improving performance
384
Vidhi Agrawal
Ajay Kumar Garg Institute of Management, Ghaziabad, India
Abstract
Purpose – The purpose of this paper is to highlight the important factors which need to be taken into
consideration to manage a diversified team. It also aims to provide business managers and executives
with a framework of how to best utilize and implement teams in the workplace so as to maximize both
internal and external diversified skill sets and capabilities in team members.
Design/methodology/approach – An extensive review of existing literature was done to form the
views of the authors on the issue. A strengths, weaknesses, oppositions, threats (SWOT) analysis of
diversified teams was done with the help of secondary research. The concept is based on the author’s
own practical experience. A combination of primary and secondary research was used to highlight and
strengthen the author views and opinions. The original ideas and basic concepts are based on the
author’s own experiences.
Findings – The study found the maximum benefits of a diversified team. The findings show that
effective teamwork requires members to recognize the team as a unit with common goals, values, and
norms. The more that team members identify with each other, the more likely they are to believe they
hold similar goals.
Research limitations/implications – The paper is an attempt to express the real organizational
scenario which is based on a sample of 20 corporate executives who dealt with a similar issue. The
industries selected were in Delhi – NCR. There is reason to believe that if study had to be done in some
other parts of the county, results may have been different. The sample taken was not very big, and was
also non-random. A large sample may have different results.
Practical implications – The study includes an extensive analysis of the organizational diversity
and its impact on the performance of the organizations. This may help business practitioners to
encourage diversity in the workplace while improving teamwork, communication and cooperation
among team members.
Originality/value – The paper highlights the different attributes of a diversified team. With the help
of primary research and well-supported secondary research, a good attempt is made to trace the four
corners of leading a diversified team. It can help future managers to guide a diversified team for good
team performance.
Keywords Team performance, Diversity, SWOT analysis, Skills, India
Paper type Research paper
Introduction
Global diversity is changing the way the world is populated and the way we view the
world. Whether a company is global or not, global diversity is evident and it impacts
all of us either directly or indirectly. Cross-cultural teamwork and collaboration are
Team Performance Management essential for an organization to succeed. If people are to function productively, they
Vol. 18 No. 7/8, 2012
pp. 384-400 must learn to see their differences as assets, rather than as liabilities (Black Enterprise,
q Emerald Group Publishing Limited 2001). The labels we apply are far less important than what they represent. Diversity
1352-7592
DOI 10.1108/13527591211281129 management, while based on cultural change, is a pragmatic business strategy that
focuses on maximizing the productivity, creativity, and commitment of the workforce, Managing the
while meeting the needs of diverse consumer groups (Black Enterprise, 2001). diversified team
Affirmative Action focuses on getting people into an organization rather than
changing organizational culture (Black Enterprise, 2001).
As we entered in the twenty-first century, more companies are formally linking
diversity to their strategic business plans. They were developing diversity strategic
plans that addressed both short-term and long-term diversity issues, more diversity 385
accountability guidelines for managers were established; quantitative and qualitative
diversity performance measures were developed; numbers of women and people of
color in management positions increased; diversity strategies were approached in the
same way as other business strategies; and diversity mission statements were
established.
“For successful businesses, diversity is much more than a buzzword or the ‘right
thing to do.’ In thriving companies throughout the world, diversity is an essential tool
that creates a competitive edge in today’s marketplace” (www.DiversityInc.com,
January 2001, USA).
In simple terms, diversity is “otherness,” or those human qualities that are different
from our own and outside the groups in which we belong (University of Southern
California, 2004). There are various qualities that differentiate one individual from the
next. (Stoller and Gibson (as cited in University of Southern California, 2004) Webster’s
Dictionary defines diversity as: differing from one another and having distinct or
unlike elements or qualities (Merriam-Webster Online Dictionary, n.d.). In the
workplace, this means the diversity among people related to such factors as age,
culture, education, employee status, family status, gender, national origin, physical
appearance, race, regional origin, religion, sexual orientation, and thinking style
(ASME, n.d.).
Tomervik, as quoted in Wentling (2001, p. 3) identified four basic themes related to
the definition of diversity:
(1) The diversity concept includes a broad range of differences in the work force:
age, disability, education levels, ethnicity, family structure, function,
geographic location, race, religion, sexual orientation, style, and values.
Definitions are extremely broad and all inclusive.
(2) The meaningful aspects of diversity are how it affects the individual and the
organization.
(3) The broadened definition of diversity requires a culture change within
organizations. Work force diversity necessitates changes in management styles,
human resource systems, philosophies, and approaches.
(4) There is an emphasis on communicating a concept of diversity as more than
race, gender, affirmative action and equal employment opportunity.
Weaknesses
Prior researches have found negative effects (Murray, 1989) or no effects (Michel and
Hambrick, 1992) of team diversity on organizational performance. Indeed, diversity
might be a double edge sword, enhancing a firm’s action propensity and its action and
response magnitudes, potentially benefiting company performance (Chen and Managing the
MacMillan, 1992). On the other hand, diversity might reduce the firm’s speed, both diversified team
in acting and responding, possibly leading to lower performance (Eisenhardt, 1989;
Chen and MacMillan, 1992) less integration (O’Reilly et al., 1989), and more turnover
and dissatisfaction (Jackson et al., 1991; Wagner et al., 1984). Some scholars have
concluded that diversity may be good for group performance while at the same time it
is bad for interpersonal relations and attitudes toward the work group (e.g. Triandis 389
et al., 1994).
Where there is high diversity, teams enter into debate due to their different
perceptions of the strategic environment and the range of possible strategic options.
Rather than accepting existing strategies and routine ways of operating, diverse teams
are liable to engage in conflict, fueled by their different perspectives. By contrast,
teams with low diversity have more common perceptions of the competitive
environment, generate fewer strategic options, and are prone to regenerating existing
strategies. Such teams are prone to competency traps and performance declines,
whereas team members that challenge each other’s assumptions can develop more
comprehensive, broadly framed strategies (Wiersema and Bantel, 1992) and
better-justified decisions (Schwenk, 1984). This type of conflict is based around the
strategy-making task and is termed a “productive” or “task” conflict because it
broadens the strategic arena and improves the strategy-making process.
Opportunities
It is well proved that the organizations which know how to deal with diversity could
get the competitive advantage over those who do not. Team diversity may permit
greater productivity than could be achieved by individual effort. The leaders across the
globe have started to recognize the importance of diversity issues at the workplace.
Companies increasingly use cross-functional and cross-cultural teams to master the
dual demands of creativity and operational efficiency (Randel and Jaussi, 2003; Zhang
et al., 2007). Besides their cultural diversity, this team set-up often entails team
members also being physically dispersed, substituting direct communication with
computer-mediated communication (Lovelace et al., 2001). Management’s role is to help
create and empower an organizational culture that fosters a respectful, inclusive,
knowledge-based environment where each employee has the opportunity to learn,
grow and meaningfully contribute to the organization’s success (Lockwood, 2005).
As no one individual is likely to possess the full complement of task-related
characteristics necessary to achieve the desired goals, team diversity may permit
greater productivity than could be achieved by individual effort.
A team whose members have diverse skills and orientations can be more creative
and nimble in strategic problem solving (Dutton and Duncan, 1987), less susceptible to
“groupthink” (Bantel and Jackson, 1989; Jackson, 1992), and perhaps more likely to
overcome their domestic myopia (Barkema and Vermeulen, 1998). Moreover, such
diversity can build trust and perceptions of procedural justice among a firms’ product
and geographic unit managers by signaling that a team or board takes competing
interests into account when allocating resources internationally (Kim and Mauborgne,
1991). Teams that are socio-cognitively complex may be better equipped to make sense
of the changing international market opportunities and to “reconcile the conflicts and
paradoxes” presented by internationalization (Murtha et al., 1998, p. 112).
TPM Within the information/decision-making perspective, Walsh (1995) suggests that
18,7/8 managers’ mental models will most likely influence the decisions they make. Diverse
groups are more likely to possess a wider range of task-relevant knowledge, skills and
abilities. Diversity might also inspire more creative and innovative group performance.
An internationalization process deals with global markets where diversity is a reality
most of the time. Thus, diversity at the board and team level could serve to: better
390 understand the complexities of different global markets; signal employees, customers,
suppliers and authorities that the firm is making a serious effort to understand new
markets and that distinct backgrounds are customary at the highest levels of the
organization; assure investors and other stakeholders that the firm is drawing
candidates from larger resource pools; diminish the level of uncertainty that the
international arena poses; improve decision making capability of both the board and the
team. This is done through better access to a wider set of information and perspectives.
An interview with the President and the CEO of Lucent Technologies Canada,
underscored the significance of integrating diversity with innovativeness (Innoversity
Network, 2000). The content of the interview suggests how Lucent Technologies is
leveraging diversity to further enhance innovativeness. Diversity is a valuable asset to
Lucent Technologies. They use it as a springboard, drawing on multiple perspectives
to nurture an innovative culture in facilitating development of innovative products.
Indra Nooyi, the current CEO of PepsiCo, once argued: “Great ideas still come from
people”. The challenge is to create the right environment to encourage innovation and
ideas. The diversity of people in a corporation promotes innovation because it achieves
greater diversity of ideas. There is a link between diversity and innovation that is not
theoretical – it is real (Walkup, 2003, p. 97). The diversity increases creativity and
innovation. If an organization has a diverse workforce, it has a broader range of
knowledge, heuristics and perspectives which strengthens the toolbox that a group can
work with and solve problems.
Threats
Diversity can enhance business performance; however, if it is not properly managed or
left to glide along without close attention, it is possible that it may produce higher
turnover, conflict, miscommunication or other unintentional consequences. The causes
of such problems are deep, with no easy solutions.
Diversity introduces manpower with different thoughts, cultures and ideas, which
can benefit the organization in multiple ways. Team members may be of different sexes,
racial groups, or ethnic, social, or cultural backgrounds. Owing to the very nature of
heterogeneous teams, which are made up of diverse individuals, challenges not present
in homogeneous teams are introduced. Polzer (2008) argues that diverse teams “are prone
to dysfunction because the very differences that feed creativity and high performance
can also create communication barriers”. Similarly, Mello and Ruckes (2006) suggest that
members of heterogeneous teams are more likely to diverge in their preferences with
respect to courses of action, which will lead to lower effort. Fleming’s (2004) study on
patents indicates that innovations from heterogeneous teams are, on average, of lower
financial value than those coming from homogenous teams.
Members of a team that is heterogeneous with respect to social categories may find
it difficult to integrate their diverse backgrounds, values, and norms and work together
( Jehn et al., 1999). Effective teamwork requires members to recognize the team as a unit
with common goals, values, and norms (Lembke and Wilson, 1998). The efficient Managing the
management of diversity in the organization has the effect on its goals and diversified team
achievements. One of the strongest reasons, apart from achievement, is the adhering of
the law of the state where the organization is working. The law has provisions to deal
with the diversity issue in the organization. Managers are responsible for the
management of diversified manpower and accountable for the employee development,
productivity and conflict resolutions in the organizations. 391
Methodology
The purpose of this paper is to briefly outline the preliminary approach used in
research to understand how diversity managers in India conceptualize diversity and
diversity management to form a basis to investigate how this conceptualization is
being implemented in the company and the outcomes of such efforts. The description
of this “research framework” focuses specifically on the first stages to gather and
analyze data sets made up of interview transcripts with Indian managers responsible
for diversity management in their company.
In order to attain more detailed and reflective information, this study applied
qualitative approach using face-to-face interviews. Data were collected from
20 corporate executives who were leading a diversified team.
The focus of the study was to find interviewees who have a good experience in
handling a diverse workforce. For the meeting, the purposive sampling technique was
applied. This technique is appropriate when the random sample is not sufficient to find
out the required results.
The sample was taken of those managers who have a particular attributes,
e.g. experience in handling the diverse work force. To make study more purposive and
quicker the technique of snowballing was applied. Under the technique of snowballing,
the interviewees are asked to give references if they know somebody else who can be
helpful to the study and can be contacted for an interview. Although snowball
sampling or networking is often associated with qualitative research, this sampling
method was found to be useful during the quantitative phase of the research, as
employees who had been contacted to participate in the survey, had inadvertently
passed the questionnaire onto individuals within the institution who met the sample
criteria.
This way researchers get help and they do not need to prove the authenticity of their
research repeatedly. Apart from that, interviews in successions were added which help
to get the novel ideas of the interviewees from the point onwards where the previous
interview has finished. As pointed out in earlier paragraphs, the sample was
non-random due to nature of the study. Therefore it does not show the actual age
distribution in the industry.
Interviews were conducted on the executives who were associated with the
industries in National Capital Region, Delhi. The companies were based in Delhi –
NCR (capital of India). As it was important to find interviewees who had experience in
managing diverse workforces, purposive sampling was used. Purposive sampling was
used to make the study more meaningful, as random sampling was not useful in this
case.
The study has used an unstructured interview technique as the structured interview
was not possible in this case. The interviewees were first selected through references so
TPM that researchers could have set a proper time to discuss issues with them. The
18,7/8 interviewees were contacted through telephone first before they were visited at their
offices. It helps the researcher to get exclusive time with the executives to discuss the
issues at length.
Analysis
The interviews were divided into two parts – one for those who were working in the
manufacturing industries and another for those who were working in the service
industries. Manufacturing industries were selected in the field of health care (including
pharmaceuticals and biotechnology) as it is the most popular industry among diverse
workforce. It is also the top preferred industry among freshers. The companies selected
were Johnson & Johnson, Jubilant Organosys and Dabur India Limited. Only industries
which were at least five years old were selected, as it can give better results. In the
service sector, the industries selected were in the area of telecommunication and
retailing. The industries selected in telecommunications were Bharti airtel limited,
Tata Telecom, Reliance Communications and in retail the company taken was future
group.
The samples were taken of 20 corporate executives representing the well
established industries in Delhi – NCR and were dealing with diverse workforce. The
industries selected had employees aged from 19 to 68. In all industries with an age span
from 19 to 60 þ , more than 20 percent of all employees were over the age of 35. The
sample was chosen for the reasons argued previously, thus providing access to
informants possessing relevant information. The interviewees were Human Resource
Executives who were responsible for Training and Development and were
instrumental in doing the job analysis.
The managers in the manufacturing industry were asked about their experience in
managing a diversified team. A few things which were common in the discussions
were that they agree that in the globalised era, a diversified team helps in achieving the
organizational objectives better than the non-diversified team. The interviewees
discussed the challenges in managing the diversified team. The majority of executives
were of the opinion that challenges, with regard to culture, are many. There are the
issues like language, style of working etc. which some time become difficult to
co-ordinate. But eventually there are many more benefits than there are problems. Most
of the issues can be settled amicably.
The managers in the service sector had few differences in opinions from their
counterparts. Compared to manufacturing industry, the turnover of diversified team is
TPM much more than in the service sector. They spoke about the extensive benefits of
18,7/8 having diverse teams in the service sector. Most of them have advocated a diverse team
in the service sector because of language and culture benefits.
All of the executives were involved in developing, implementing, or managing
strategies or programs related to diversity and inclusion for their companies’
workforce. Of the 11 (55 percent) respondents were from the Manufacturing sector and
394 nine (45 percent) were from the Service industry. The interviews not only reflected the
findings of the survey, but also provided a detailed look at how companies are using
diversity to work for them, and how a diverse and inclusive workforce is essential for
driving innovation and guiding business practices.
Senior executives are recognizing that a diverse set of experiences, perspectives, and
backgrounds is crucial to innovation and the development of new ideas. When asked
about the relationship between diversity and innovation, the majority of respondents
agreed that diversity is crucial in encouraging different perspectives and ideas that
foster innovation.
About a third from the service sector said that their companies have global
strategies that allow for minimal regional deviation, while half of the executives from
manufacturing sector said that their organizations have a global plan that also allows
for different strategies and programs in order to address regional needs or cultural
differences.
The managers were asked about how the distrust, lack of cooperation, and general
unwillingness to work with others created by social category diversity, could impact
performance and how it can be overcome. A total of 61 percent in the service sector and
65 percent in the manufacturing sector were of the opinion that the role of cultural
events, get-togethers and participation in the social events substantially helped to
overcome these problems.
A total of 53 percent from service sector and 55 percent from manufacturing sector
strongly agreed that diversity helps drive innovation. “Because of our diverse
workforce, we’ve experienced a boost in productivity.” Out of the survey, 60 percent
from the service sector and 64 percent from the manufacturing sector have programs in
place used specifically to recruit diverse employees.
More than half of the service sector interviewees (55 percent) had the policy of
recruiting the fresher’s from colleges having intake from diversified culture, while
60 percent of the interviews in the manufacturing sector were of the opinion that they
could recruit the fresher’s from the universities and colleges where they could find
diverse workforce. Out of the total executives surveyed each one agreed that their
organization have formal diversity and inclusion strategy in place.
The managers interviewed were asked about their company’s diversity and
inclusion priorities. A total of 49 percent in the service sector and 51 percent in the
manufacturing sector stated that retention and development of talent helped in
ensuring diversity in the workplace.
The managers were asked whether the training they receive at the workplace helps
them to deal with diversity of the workforce. A total of 54 percent in the service sector
and 59 percent in the manufacturing sector strongly agreed that the training received
at work enables them to deal with the diverse workforce.
The interviewees were asked about the importance of policies and procedures in
their organization in managing the diversified workforce. Around 53 percent in the
service sector and 59 percent in the manufacturing sector agreed that defined policies Managing the
and procedures help in controlling the diverse workforce. diversified team
The managers who had participated in the interviews were asked about what were
the perceived barriers and whether they enabled them to share knowledge with the
diversified colleagues. The purpose was to establish if the diversity climate would
feature as a barrier and/or an enabler, if it was not explicitly mentioned as such.
395
Discussion and conclusions
The analysis shows that the organization as represented by management can provide
the tools to assist employees in improving their work climate, in terms of diversity and
knowledge transfer. However, cognitive and behavioral change and the benefits to be
realized from such initiatives can only emanate from the individual. As such,
individuals need to align themselves to the broader organization goals in order to
realize their desired career outcomes. In terms of knowledge, sharing specifically,
employees can be proactive in building or joining informative networks such as CDG
(Culturally Diverse Groups) applied in the company.
Human Resource specialists should ensure that knowledge harvesting is conducted
in respect of individuals leaving the organization. This forms part of the knowledge –
sharing drive, as personal knowledge that such individuals have gained in the
organization – can be used for the benefit of others. From a Human Resource
perspective, it is important that all discussions with the diversity managers, in the
interviews reported, indicate discrimination on any level, as they need to be dealt with
in a manner that discourages this type of interaction.
Extensive literature has been researched indicating that businesses are sensitized to
the extent that a diverse workforce can extend their capabilities in terms of innovation
and sustained competitiveness, differences in culture and background and still be a
barrier to the sharing of tacit knowledge. Analysis shows that in either sector,
manufacturing or service, results are more or less are same.
The discussions made with the mangers dealing with the diverse workforce have
shown that if the maximum benefits are to be obtained from team production, it is
imperative that distrust, lack of cooperation, and general unwillingness to work with
others created by social category diversity be overcome. Effective teamwork requires
members to recognize the team as a unit with common goals, values, and norms
(Lembke and Wilson, 1998). The more that team members identify with one another,
the more likely they are to believe they hold similar goals, values, and norms, and the
more willing they will be to cooperate and work together as a team. An individual who
perceives himself as a member of a team is more likely to perceive the fate of the team
as their own (Ashforth and Mael, 1989).
With time, group members begin to share each other’s perspectives. arriving at
common understandings of the group tasks, something that diminishes diversity’s
tendency to trigger task conflict.
A team with dissimilar individuals and opinions need a leader that can guide the
group in a common and productive direction and align efforts. “A leader can be wrong
but not confusing”. It is the role of the team leader to delegate appropriately (Wee and
Morse, 2007), which means that he or she needs to know each team member’s
strengths, weaknesses, likes, and dislikes and the only way to achieve this is through
open communication.
TPM Managers should appraise the performance of their employees and, more
18,7/8 importantly, identify the individual’s potential for success in a more seasoned way.
Therefore, any differences in the way managers interpret, appraise and respond to the
performance of their subordinates should be eliminated. It is also essential to have fair
and effective processes in managing the diverse manpower and, at the same time,
organizations need to investigate which skills will create a more inclusive environment.
396 It can be understood in the context of the discussions that a productivity and
competitive advantage can be gained, through the utilization of the different skills of
diverse individuals. Managers can do it strategically.
Several key diversity competences can be used to develop greater awareness and
skills in managers. One of the most effective approaches is the establishment of the
resource centers where employees identify, analyze and experience the required
behaviors first hand through a series of meetings/role plays observed by coaches.
Clearly, it is important for organizations to commit to diversity, to review targets
and networks, and to find innovative ways of tackling bias. Even more critical to
success is training and development, both in building the skills of assessors and
encouraging managers to reflect on their own behavior. Without this missing link, it
will be difficult for organizations to effectively translate their policies, procedures and
targets into actions.
The workforce is not going to be limited to one culture or population, rather, it
should be made to include a multicultural and diverse population. The managers
should understand and, accordingly, prepare to face the multicultural and multilingual
communities in future. The future managers who have understood this scenario are
concerned with the strategy formulation used handle the related issues.
The art of managing diversity is thus a big challenge to future managers charged
with the responsibility of leading the diverse team. On the basis of the discussion made
with the interviewee, the team leaders should carefully evaluate their teams’ strengths
and weaknesses, so as to build on the strengths and facilitate improvement of weak
areas. Sometimes it will be necessary to modify the team’s structure by either
recruiting talent or removing weak links that hinder performance and productivity so
as to ensure that the appropriate competencies are present.
This paper concludes that managers in organizations need to operate at the micro
level by engaging members of their workforce in the development of policies. It will
create an environment of co-operation among the team members irrespective of what
the culture, age or language of the members may be. The future organizations should
create a conducive environment where the workforce have members of diverse
backgrounds and the members of these workforces should accommodate the views of
others and applaud genuinely.
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Further reading
Bartz, D.E., Hillman, L.W., Lehrer, S. and Mauhugh, G.M. (1990), “A model for managing
workforce diversity”, Management Education and Development, Vol. 21 No. 5, pp. 321-6.
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dispersion increases”, Journal of Product Innovation Management, Vol. 24 No. 1, pp. 156-65.
Maxwell, G., McDougall, M. and Blair, S. (2000), “Managing diversity in the hotel sector: the
emergence of a service quality opportunity”, Managing Service Quality, Vol. 10 No. 6,
pp. 367-73.
Triandis, H.C., Kurowski, L.L. and Gelfand, M.J. (1992), “Workplace diversity”, in Triandis, H.C.,
Dunnette, M. and Hough, L.M. (Eds), Handbook of Industrial and Organizational
Psychology, Consulting Psychologists Press, Palo Alto, CA, pp. 770-827.
Corresponding author
Vidhi Agrawal can contacted at: dr.vidhiagrawal@gmail.com