Abstract

The purpose of this study is to explore the concept of diversity management in the
workplace, with particular emphasis on the hospitality sector in Ireland today. The
principal objective of this study was to examine how organisations in the hospitality
sector can efficiently perform in a diverse work environment and to formulate a
conceptualised view of diversity initiatives as being an important contributor to

their competitive advantage in today’s economic environment. This dissertation

consists of five chapters. The first chapter is the introduction which contains the
background and overview, the aim, objectives, question and an outline of the
methodology. The second chapter is the literature review and addresses, through
academic research, the aim, objectives and question. The literature review is
followed by the methodology chapter which then leads to the analysis and
discussion in chapter four. The final chapter is the conclusion. The methodological
framework of this research consisted of a combination of both primary and
secondary research. The secondary research examined the literature through journal
articles, books and the internet, while the primary research adopted a qualitative
method based on semi-structured interviews.

Results from the analysis of the research data indicated certain trends in relation to
diversity management initiatives in the Irish hospitality sector, namely flexible
working practices and equality. Also, the findings established that legislation and
demographic changes are primary driving forces behind diversity management in
hotels in Ireland followed by diversity management initiatives taken by major USA
hotel groups such as the Hilton Hotel. Other findings indicated challenges, which
included language barriers, flexibility issues, different humour of foreign staff.
Findings in relation to organisational benefits indicated employee morale, a sense of
pride and inclusion, different sets of skills and creativity from staff. However the
findings in relation to the financial benefits to organisations were difficult to
establish, this might be due to the fact that there is very little research in the area of
cultural diversity in the Irish hospitality sector, which will be an area for future
research.

i
Authorship Declaration

I hereby certify that the material I now submit for the assessment of the academic
programme of study leading to the award of an MA in Human Resource
Management is entirely my own work, it has not been taken from the work of
another individual and it has been cited and acknowledged correctly within the text
of my work.

Signed: ___________________________________

Date: ____________________________________

Student Number: 12117315

ii
Acknowledgments

A number of people have been responsible for the completion of this dissertation
and I would like to take this opportunity to thank them all.

First of all, I would like to thank my supervisor Bronwyn McFarlane who has been
extremely helpful and directed me with her skills and expertise whenever I needed
her. Secondly, I would like to thank my programme director Catriona Hughes for
her full support and advice throughout my year in college. I would also like to thank
all the lecturers and staff at NCI who have been very supportive, specifically Philip
McGovern for his sincere support and guidance, Catherine Elliot and Karen
Mooney at student support who have been very patient and supportive of me
throughout the year, I would also like to thank the library staff for their assistance in
accessing all the research materials.

Finally, I would like to thank my classmates, friends and family for their advice and
full assistance, a special thank you to my mother Mary, my sister Epiphany and my
friend Pat who have provided me with advice, constant motivation and

encouragement. I wouldn’t have completed this research successfully if it wasn’t for

all of them.

Thank you.

Annette Michaela

iii
Table of Contents

Abstract......................................................................................................................i

Authorship Declaration.............................................................................................ii

Acknowledgement.....................................................................................................iii

Table of Contents.......................................................................................................iv

List of Tables.............................................................................................................vi

List of Figures...........................................................................................................vii

List of Appendices...................................................................................................viii

Chapter 1 – Introduction ………………………………….......................................1

1.1 Scope/Rationale/Background……………………………...................................1

1.2 Research Question, Aim and Objectives………..................................................3

1.2.1 Aim ...................................................................................................................3

1.2.2 Objectives…......................................................................................................3

1.2.3 Key Question.....................................................................................................4

1.3 Structure of the dissertation……………………………………………………..4

1.4 What is Work Place Diversity Management? …….…………………………....5

1.5 The Emergence of Cultural Diversity Management in the Hospitality Sector....6

1.6 Demographic Changes in Ireland (Diversity Implications on the Workforce)....8

1.7 Legislation/Emergence of Diversity Initiatives in Irish Hospitality Sector…....11

1.8 Summary……………………………………………………………………….14

Chapter 2 – Literature Review……………………………………………………..15

iv
2.1 Hilton Hotel Group’s Framework for Managing Diversity.................................16

2.2 Diversity Conceptualised as Asset to the Organisation………………………..21

2.3 Drivers of Diversity Initiatives in the Irish Hospitality Sector & Implications for

Organisational Competitiveness..…....……………………………………………..23

2.4 Diversity Initiatives in the Irish Hospitality Sector…………………………….26

2.5 Challenges of Managing a Cultural Diverse Workforce…..……….…………..27

2.6 Initiatives taken by the Irish Government/ Employer Bodies to Foster

Diversity.………...…………………………………………………………………29

2.7 Summary……………………………………………………………………….30

Chapter 3-Research Methodology……………………..…………………………...31

3.1 Objectives of the Research and Methodology Applied………………………...31

3.2 Research Population…………………………………………………………...34

3.3 The Sample Population………………………………………………………...35

3.4 Exclusions……………………………………………………………………...36

3.5 Limitations……………………………………………………………………..36

3.6 A Pilot Study…………………………………………………………………...37

3.7 Ethical Considerations………………………………………………………….37

3.8 Data Analysis Technique………………………………………………………38

Chapter 4- Findings and Discussion……………………………………………….39

V
4.1 Findings- Cultural Diversity Profile…………………………………………....39

4.2 Findings- Driving Forces behind Diversity Initiatives in Irish Hotels………....41

4.3 Findings – Implications of Diversity Management Initiatives in the Irish

Hospitality Sector…………………………………………………………………..47

Chapter 5- Conclusion……………………………………………………………...53

Bibliography………………………………………………………………………..54

List of Tables
Table Number Page Number

1. Employment Classified by Economic Sector and Nationality……….........17

2. Employment Equality Act 1998 and 2004…………………………….......19

3. Recognition of Diversity and Inclusion Achievements…………………....27

vi
List of Figures

Figure Number Page Number

1. Migration to and from Ireland 2002-2012…………………………………16

2. Work Permits issued in Ireland from 1999-2003………………………..…16

3. The List of Interviewees…………………………………………………....39

4. Nationality Report from some of the Participants………………………….47

5. Existing HR Policies in Irish Hotels………………………………….........49

6. Driving Forces behind Diversity Initiatives in Irish Hotels………………..53

vii
List of Appendices

Appendix-A: Email to Hotel HR Directors..............................................................65

Appendix-B: Interview Questions............................................................................66

Viii
Chapter 1- Introduction

1.1 Scope / Rationale / Background

Cultural diversity in the workplace is becoming increasingly popular in a complex

and fast moving world. According to Brislin (2008) individuals from different
cultural backgrounds come into extensive contact with each other for reasons such
as travel, study, work business etc. Due to modern globalisation many organisations
have a diverse work force. Cultural diversity in the work place is an important area
of study as it can influence the overall performance of the organisation. Ignoring
cultural diversity in a culturally diverse workforce can hinder success and further
development of an organisation (Witherspoon & Wohlert, 1996).

Employees within organisations have to work together to achieve the missions and
goals of the organisation, therefore managing work place diversity effectively is
essential for the efficient functioning of any organisation. Since the expansion of
the European Union (EU) in 2004, a rise in the number of refugees seeking asylum
and the increase of foreign direct investment has meant that Ireland has seen people
of different nationalities from different parts of the world wanting to work and
settle.The census figure in 2012 shows that there is a 143% increase in the number
of non-national people living in the Republic of Ireland between 2002-2011 despite
the economic downturn (Kenny, 2012). Also, the June 2011 census figure report
from the Central Statistics Office states an increase of 25% to 766,770 of population
in the period between 2006 and 2011 despite the decline of the economy. This
increase has led to a multi-cultural environment and a cross-cultural workforce and
explains the culturally diverse environment in Ireland, thus, ensuring this research
into effectively managing a diverse workforce in Ireland is contextually relevant.

Ireland has changed dramatically in recent years, from almost a homogeneous

nation before the Celtic Tiger, to a multi-cultural society after the Celtic Tiger. The
report from the Irish immigration authority published a number of work permit
applications between 1999 and 2003 from 6,250 to approximately 47,551. In 2004,
23,000 foreign nationals arrived in Ireland in the first three months following the
EU enlargement. A report by Failte Ireland (2008) suggests that by the end of 2004
up to 50,000 people arrived in Ireland from the EU accession countries.

1
The Irish workforce, specifically the hospitality industry which employs the
majority of foreign nationals is facing new challenges that require structured
planning to maintain its unique competitive advantage. The introduction of new
equality legislation has also identified the necessity for equality in the workplace;
protecting the dignity of all individuals in the workplace, by valuing their
differences and taking into account their individual needs. Yet, at the same time,

managers are faced with the issue of how to effectively utilise immigrants’ skills

and attributes and how to deal with language barriers and culture differences.
Owing to these and other issues, a need to raise awareness of such challenges and
identify ways of coping with them is necessary.

The selected topic of study is not only an area of personal interest, but also an area
that has not been addressed in depth by the Irish employers in the hospitality
industry who employ a large number of foreign workers. Leading by example, the
Hilton Hotel Cooperation (2013) has demonstrated huge initiatives in promoting
diversity, and it is the first major hotel corporation to put together an effective
program monitored by the Diversity Council with 33 on-going diversity initiatives.

There has been a small amount of research conducted into the area of diversity, for
example Rodgers & Hunters (2003), who studied the effective way to manage
diversity in organisations. They suggested ways such as the development of an
adaptive management style. This may help in understanding which behaviour works
with each employee, and put emphasis on individual management rather than a
group in order to improve manager/employee relationship. Rodgers & Hunters
(2003) also conducted research which saw 70 to 80% of employees leaving
employment, not because they disliked their jobs, but because of their poor
relationship with their managers. They highlighted ways of focusing on
relationships by handling employee interactions individually and emphasised
communication and feedback. However, they failed to highlight the root of the
problem of communication which is a language barrier. They also failed to specify
other initiatives such as applying diversity imperatives and interfaces.

A qualitative and quantitative research by Finnerty (2004) on diversity management

2
in today’s Irish workplace also saw legislation as a key driving force for

promoting diversity in the workplace and that no tangible evidence had seen a

positive impact on an organisation’s performance. Two issues were revealed by the

above literature; one issue is how effective is diversity management within

organisations. The second being, is it worth the effort? In other words, the question
can be asked, are current diversity management measures sufficient and are they
applied efficiently and correctly within the Irish hospitality sector? Is the effort
made only as a result of legislative reasons? If not, why would the Hilton Hotel
make so much effort? Therefore, the aim of this dissertation is to examine diversity
in the workplace with reference to managing a culturally diverse workforce in the
Irish hospitality sector with particular reference to the initiatives taken by the US
Hotel Group (The Hilton Hotel) in promoting diversity in the workplace. Diversity
has been hypothesised in many different ways, since the term diversity is so broad

and also due to the large increase of foreign nationalities in today’s Irish work

environment, specifically the hotel sector, the researcher felt it necessary to choose
cultural diversity to conduct this research.

1.2 Research Question, Aim and Objectives

1.2.1 Aim

The aim of this dissertation is to examine diversity in the workplace with reference
to managing a culturally diverse workforce in the Irish hospitality sector with
particular reference to the initiatives taken by the US Hotel Group (The Hilton
Hotel) in promoting diversity in the workplace.

1.2.2 Objectives

1.2.2.1 To develop a conceptualised view of the diversity initiatives in the Irish

hospitality working environment.

1.2.2.2 To establish what have been the driving forces behind the diversity
management initiatives in the Irish hospitality workforce.

3
1.2.2.3 To investigate whether organisations in the hospitality industry perceive
diversity management initiatives as being an important contributor to their
competitive advantage in the market place.

1.2.2.4 To critically appraise the literature of the Hilton Hotel’s diversity and

inclusion initiatives.

1.2.3 Key question

Are current diversity management measures sufficient and are they applied
efficiently and correctly within the Irish hospitality sector?

1.3 Structure of the Dissertation

This dissertation consists of five chapters. Chapter 1 examines the concept of

diversity and diversity management; it then explores the emergence of cultural
diversity management in the workplace in the hospitality industry and diversity
implications in Ireland. This chapter also appraises the emphasis put forth by the

Irish Equality Legislation – the Employment Equality Act 1998 and the Equal

Status Act 2000, which requires employers to promote equal opportunities and
value diversity in the workplace.

Chapter 2 is the literature review which explores what research and opinions exist in
relation to diversity management in the Irish hospitality work environment. It also

looks at the Hilton Hotel’s framework for managing diversity. This chapter seeks to

examine the impact that diversity has to organisations’ competitive advantage in the

market place by looking at challenges and opportunities of managing a cross-

cultural team. This section of the research also examines what are the main driving
forces behind diversity management within organisations in the hospitality sector in
Ireland. The focus is put upon the management of cultural diversity, challenges,
opportunities and the implications on organisational competitiveness.

Chapter 3 introduces the research methodology section which outlines the research
aims and objectives.

4
The researcher has identified numerous options for conducting this study and will
justify the reasons for each chosen method of research and why it was deemed
appropriate for this study. This chapter will also outline the details of how the data
analysis was conducted. This will form the basis of the discussion and findings of
the study which will be outlined in the last chapter. The researcher also attempts to
relate and compare these findings with the findings from the literature review.

1.4 What is Workplace Diversity Management

Before examining what workplace diversity management is, it is necessary to

understand what perceptions organisations have on the term ‘diversity’. Mor-Barak

(2011, cited in Githens, 2011) pointed out three common views of diversity which
receive the most attention by scholars and workplace practitioners, these were
referred to as: narrow category-based definitions, broad category-based definitions
and conceptual definitions/articulations of diversity.

According to Mor-Barak (2011), narrow category-based articulations of diversity

are based on discrimination laws i.e. discrimination against gender, racial and ethnic
groups, national origin, disability and age. For example, the United Nations
hypothesises diversity in terms of religion, physical ability, age, race, sexual
orientation, gender, language and differences.

The second definition is broad category-based articulations, according to Mor-Barak

(2011, cited in Githens, 2011) this definition is included in the US federal
legislation and it consists of cultural background, marital status, education, social
class, length of service in the organisation and skills of the individual.

The last category is the broad conceptual articulations of diversity. According to

Githens (2011) these articulations have become increasingly common in the past 15
years; this is due to the fact that many organisations are becoming more interested
in viewing diversity in general terms that transcend categorisations. This category
has been popularised by many authors such as Roosevelt Thomas (1991) who
analysed a fundamental causal factor behind the reality of diversity or increasingly
urgent managerial need to address its challenges and opportunities.

5
Now, individuals are encouraged to be comfortable with being different and others
are even inclined to celebrate being different. The approach in the third category
allows all individuals in the organisation to personally identify with the concept of
diversity and understand its relevance to all individuals. For example, the Irish
Business and Employers Confederation (IBEC) conceptualises diversity as a mix of
individuals with different experiences, backgrounds and attitudes which brings
different perspectives and ideas to the organisation. The Irish Hospitality Institute
(2008) defines diversity as a mosaic of individuals who bring a variety of
backgrounds, styles, perspectives, values and beliefs as assets to the groups and
organisations with which they interact. Therefore, workplace diversity management
is referred to as, the systematic and planned commitment on the part of
organisations to recruit and retain employees from diverse demographic
backgrounds. This also implies an active recognition and appreciation of the
increasingly multi-cultural nature of contemporary organisations (Prasad, Mills,
Elms & Prasad, 2002).

1.5 The Emergence of Cultural Diversity Management in the Hospitality Sector

According to Hughes (1992), a culturally diverse workforce has, for a long time,
been an important reliance for the hospitality industry. Hadson (2008) suggested
that globalisation is one of the main driving forces behind corporate strategic
planning of most international hotels as more migrants and minority workers enter
the hospitality industry. Due to the current growth of globalisation, organisations
are led to realise that they are not only competing for the domestic market, but also
for the global market. According to Lim & Noriega (2007) more than half of the

world’s assets are controlled by multi-national organisations. With rapid economic

growth, Asian-pacific countries are becoming increasingly popular for multi-

national corporations to acquire market shares (Gong, 2008). For example, Macao,
Hong Kong, and mainland China have turned out to be ideal locations to open new
properties for the US international hotel brands like the Hilton Hotel group and
Marriott Hotels. Stanley (2008) reported that over the next decade Hilton Hotel
Corp. decided to add 300 hotels to the 47 hotels it already managed in Asia.

6
During the 2008 Beijing Olympic Games almost every international hotel brand had
opened a new property in the mainland China. This meant that companies must now

compete to acquire the best talents, especially competent global managers, as a well
as a diverse workforce who can cooperate successfully with people from different
cultures in order to serve a diverse group of guests from all over the world.

The continued globalisation of the hospitality sector, in the domestic market of the
US has meant that more immigrants and minority workers get into the workforce.
According to Elmuti (2001, cited in Gong, 2008) the first decade of the 21st century
saw the increase in the percentage of minorities in the US by 29% while the 2010
statistics from the Department of Labour in the USA reported a 44.1% increase of
minority workers in the US workforce and the minority groups are expected to

occupy almost half of the nation’s population by 2050. Due to the fast growth rate of

globalisation and labour structure change, the industry is now facing multi-cultural
challenges and is looking for ways to increase fairness for all employees regardless
of their cultural differences. It is also seeking for ways to maximise the talent and
the potential of every member in a diverse team and a harmonious place to work. It

is the organisations’ aim to achieve common goals and objectives, which requires

managers to come up with a strategic plan and a design of an effective program to

help them to rise to the challenge (Gong, 2008).

On the other hand, a report on a holistic approach to diversity management by

Fernandez (2013) suggests that the hotel industry was forced to react to National
Association for the Advancement of Coloured People (NAACP) - the organisation
in the United States formed in 1909 with the mission to ensure the political,
educational, social and economic equality of rights of all people and to discourage
racial hatred and discrimination. In this report Fernandez (1998) suggested that a
publicised hotel survey which was conducted by NAACP in 1997 was viewed as a

challenge to the industry’s commitment to the minority groups in the United States.

Although the hotel industry has long been a good place for minorities to find work,
not enough effort has been put in to help them advance to

7
higher level of management and leadership. By not having a clear strategy for
managing diverse talent, the hotel industry was open to observation by minority
special interest groups (Fernandez, 1998). This report, along with the issue of
globalisation, explains the effort taken by major hotel groups who have developed
cultural diversity management training. These are designed specifically for the

hospitality management to increase workers’ awareness of cultural differences and

attempt to effectively manage diversity to maximise corporation and productivity.

1.6 Demographic Changes in Ireland (Diversity Implications on Hospitality

Workforce)

Demographic changes have a major impact on the labour market in the hotel
industry, without people, operations and business development departments will not
function effectively. The demographic refers to the size and characteristics of a
population of a country. In his article on the top ten issues in the hospitality
industry, Raleigh (2007) stated that the population growth has been slowing in
Europe and the number of workers leaving the workforce exceeds those entering.

According to O’Brien (2005), migration is seen as the main reason for the decline of

the population in Ireland. Other reasons, such as fewer children being born was also
identified by Kew & Strewdick (2010), the ageing force moving into retirement age
is creating a number of problems. For example, the statutory retirement age in
Ireland is currently 65 years old, but recent appointed judges have their statutory
retirement age increased to 70 years. A report by ILO (2011) listed the ageing of
baby boomers, better health, longevity and lower birth rates as reasons to why there
is an increase in older people in work places today. HR practitioners will have no
option but to adjust to this shift by bringing more of the younger people into the
workforce, but how can this be achieved if migration is seen as the main reasons for
the demographic shifts?

The current economic situation in Ireland sees a lot of people emigrating to search
for work abroad, but at the same time it has seen a large increase in the number of
foreign nationals migrating to the country (See fig.1- Migration to and from Ireland,
2002-2012).

8
The number of non-Irish nationals living in the Republic of Ireland has risen to 143
% to more than half a million between 2002 and 2011 (Kenny, 2012). The number
of work permits issued for migrant workers in Ireland has also risen (See fig. 2-
Work Permits Issued). There was also an enlargement of the EU in 2003, a further
74 million people, which helped to fill job vacancies that were suffering skills
shortages. Fig. 1: Migration to and from Ireland, 2002-2012

Fig. 2: Work Permit issued in Ireland- from 1999-2003

Work Permits Issued between 1999- 2003
1999 ------------------------- 6.250
2000--------------------------18,006
2001--------------------------36,436
2002--------------------------40,321
2003------------------------- 47,551
2004---------------------------34067
2005---------------------------27136
2006---------------------------24854
This figure shows the increase of work permit issued between 1999 and 2003 and the
decrease of work permit issued in 2004 onwards - this was due to the EU enlargement
in 2004 where work permits were no longer required for new EU members.
(Source: Data from Department of Enterprise, Trade and Employment)

9
In his article on the top ten issues in the hospitality industry, Raleigh (2007)
reported that many people do not prefer hospitality work and do not consider it to be
glamorous. Along with its reputation for having unsocial hours of work, low pay
and rigid contracts, it has failed to attract local workers who would rather migrate
than begin working in this sector, which leaves immigrants to be the main source of
labour. The 2007 Labour Market Commentary saw non-Irish nationals accounted
for 11% of the Irish workforce, for the labour-related picture of migrant workers in
the Irish hospitality workforce to be examined, it is necessary to look at the
distribution of immigrants across other sectors in the Country, i.e. Construction,
Retail, Hospitality, Cleaning and Care Work (See table 1. - Employment Classified
by Economic Sector and Nationality).

This information was obtained from the CSO, it provides an estimation of the labour
force classified by nationality and economic sectors through the Quarterly National
Household Survey (QNHS). The first three sectors (Construction, Retail and
Hospitality) are regarded by the CSO as broad economic sectors which show that
the highest numbers of migrants are employed in construction. However, it
highlights that the largest concentration of migrant workers are in hotels and
restaurants where they accounted for 28.13 of people employed in this sector.

According to Cornell & Burgess (2009), HR professionals are now faced with an
issue of how to effectively manage a diverse workforce and they must also come up
with a strategy which will allow them to deal with the demographic changes.
Quillien & Olila (1992) suggest that if organisations seek to retain their employees,
they must: analyse the local culture, listen, share ideas, question, observe skills and
be curious of talented employees.

They must also be flexible in their working practices and provide a work-life
balance, as it can help retain workers (Reynar & Smith, 2009). Kirkman (1984)
defines the work-life balance as a quality of working life while at work, which

means leisure and family are included in one’s working life.

10
Table 1: Employment Classified by Economic Sector and Nationality

Quarter 3 of 2004 Quarter 4 of 2006

SECTOR Number of % of Irish Number of % of Number of % of Irish Number of % of Migrant

Irish Migrants Migrants Irish Migrants

Hotels & 98,200 84.66% 17,000 15.34% 83,800 71.87% 32,800 28.13%
Restaurants

Wholesale & 255,200 94.45% 15,000 5.55% 260.700 90.43% 27,600 9.57%
Retail

Construction 209,500 94.50% 12,200 5.50% 243,900 86.61% 37,700 13.39%

All Sectors 1,779,100 93.95% 114,500 6.05% 1,850,600 89.57% 215,500 10.43%

(Source: Data from the Central Statistics Office, Ireland.)

1.7 Legislation /Emergence of Diversity Initiatives in the Irish Hospitality

Sector

According to Pilbeam & Corbridge (2006) diversity management is about valuing

everyone as individuals; this includes age, race, gender, disability etc. Hilton Hotels
worldwide have developed a corporate responsibility and created a culture where
team members feel appreciated. It recognises and views international cultures as
valuable, and make sure people of all ages, nationalities and gender are seen, heard
and respected.

They have invested in programs that promote diversity i.e. the inclusion training and
celebrations of international traditions and culture awareness week. This strategy
allows them to tackle the issue of retention, because employees feel valued,
respected and therefore, remain loyal and committed to the organisation.

11
When the emergence of diversity management in organisations in the Irish
hospitality sector is examined, it is possible to see that managing diversity and
promoting a diverse workforce culture has stemmed from the initiatives made by
major US international hotel groups, such as the Marriot, the Hilton Hotel etc.

who see diversity as a key component to growth and competitiveness (Hilton Hotel,
2012). The legislation requirements in Europe and Ireland also act as a primary

driving force behind diversity management in organisations in Ireland. The

introduction of the new equality legislation – The Employment Equality Act 1998

and the Equal Status Act 2002 have an impact on how diversity is managed. The
Employment Equality Act outlaws harassment and discrimination in employment
on the following grounds -gender, sexual orientation, disability, marital status,
religious beliefs, race, family status, age, and membership of the travelling
community (See Table 2- Employment Equality Acts 1998 and 2004).
Discrimination on these grounds is unlawful and prohibits employers to deny
individuals access to employment, conditions of employment, training or experience
for or in relation to employment, promotion or re-grading and classification of
posts. Article of the Treaty of Amsterdam - The EU Directive- Implementing the
Principle of Equal Treatment between Persons irrespective of Racial or Ethnic
Origin 2000 requires member states to take appropriate action to combat
discrimination.

A directive on equal treatment irrespective of race and ethnic background has been
adopted by EU member states. It covers goods and services, health, education, sport
and employment. It also makes provision for positive action on the race ground in
relation to employment and training within organisations.

12
Table.2 Employment Equality Act 1998 and 2004

Gender Defined as a biological & physiological

characteristics that define masculine &
feminine or men & women

Family Status An employee who has parental

responsibilities, i.e. a parent or a primary
carer for someone with a disability who
requires a high degree of attention.

Age This covers employees between the age of

18 and 65- where the retirement age is 65
years.

Disability A disadvantaged person; someone with a

physical or mental condition that limits
his/her movements, senses etc.

Race Includes nationality, ethnicity, colour and

national origins/background.

Sexual Orientation Includes heterosexual, bisexual,

homosexual etc.

Religious belief Different religious backgrounds or

outlook, Muslims, Christians etc.

Membership of the traveller community A community of people called the

travellers and are identified by others or by
themselves as people with a shared history,
culture and traditions that includes a
nomadic way of life on the island of
Ireland.

(Source: Data from the Irish Statute Book, also from www.equality.ie )

13
1.8 Summary

From having examined the origins of diversity management in the hospitality sector,
the shift of demographics in Ireland and the emergence of legal requirements of
equal status at work, it is possible to see the development from the quota approach
to understanding the differences of individual groups in the workplace, to managing
these differences. The above literature suggests that due to an increase in
globalisation, a more diverse workforce would become apparent in the hotel
industry. From examining the Irish context, the enlargement of the EU and the
change of the Irish economy during the Celtic Tiger, has seen the workforce in
organisations in Ireland becoming more diverse, which recognised the need to
manage diversity effectively. The increased presence of migrant labourers is
relatively new to the Irish economy, the 2002 FAS Irish Labour Market Review
suggested that the Irish economy will have an ongoing need for migrant workers;
this means that cultural diversity will remain a permanent feature of the Irish
workforce. However, legislation alone is not sufficient enough to address diversity

issues in today’s Irish hospitality workplace, neither are shifts in demographics and

globalisation. This is because, diversity management in the workplace requires

companies to go beyond meeting the legal requirements and take a proactive
approach in achieving both individual and organisational benefits through effective
management systems of diversity. The following chapter will review the literature

on the Hilton Hotel group’s framework for managing diversity and will investigate

whether organisations perceive diversity management initiatives as being an

important contributor to their competitive advantage in the market place.

14
Chapter 2- Literature Review

In this section, the researcher seeks to identify what research, concepts and opinions
relating to diversity, specifically cultural diversity and diversity management, exist
thus far. From having briefly outlined in chapter one the Hilton Hotel group
diversity and inclusion initiatives this chapter will look further and appraise the

literature of the Hilton Hotel’s diversity management initiatives. It will also identify

what appears to have been the driving forces behind diversity management
initiatives in the Irish hospitality work force and what literature exists in relation to
the implications for organisational competitiveness in the hospitality industry. This
chapter will also address challenges of managing a cross-cultural team and outline
effective ways to manage diversity. The research will concentrate on literature that
relates to the management of cultural diversity with implications for competitive
advantage in the Irish hospitality workforce. Finally, this chapter will discuss
materials from the Irish government and employer bodies and examine what
initiatives have been taken to address the area of diversity and equality in Ireland
over the recent years.

Theories relating to diversity management have emerged since 1940 in the US when
diversity was viewed as a problem. Conant (1945, as cited in Finnerty, 2004)
established a report which was concerned with maintaining social stability of higher
social class levels from lower class levels. This report did not consider diversity in
terms of race, gender, ethnicity etc. but rather considered it in terms of class and
status. Tatli (2006) wrote an article for CIPD on Diversity Management Measuring
Success which pointed out that diversity management that involves race, gender,
ethnicity etc. only developed as a philosophy in the late 1980s in North America. In
the 1990s, the concept became a new management approach in the UK because of
the prevailing social and economic climate. It then became a requirement for any
successful organisation. This was because of the competitive pressures to sustain
economic performance, as well as the changing expectations of the society. As a
result, the workforce of 21st century was more diverse in terms of culture, gender,
age, sexual orientation etc.

15
For the purpose of this study the focus is put upon cultural diversity. A report by

Failte Ireland (2013) outlined that ‘A positive culturally diverse workplace is a

workplace that celebrated its employees’ cultures, that values and explores

differences and that actively seeks to learn from other cultures in an inclusive and
respectful manner, it is concerned with individuals, their inherent differences and
needs and their successful inclusion in the workplace and society, diversity
recognises and nurtures differences between human kind. A diverse community
demonstrates tolerance, respects differences, identifies similarities and strive for

inclusiveness.’ The report continues to suggest that many organisations take

diversity initiatives in order to improve innovation based on the concept that

differences will provide new ideas and ways of thinking, thereby encouraging
innovation and creativity. This suggests that, managing diversity in the 21st century
is not only socially desirable but also a driver of organisational competitiveness.

2. 1 Hilton Hotel Group’s Framework for Managing Diversity

Hilton Hotel’s consist of staff of different nationalities, serving diverse guests, with

more than 40 languages being spoken, among the 300,000 team members of staff in
more than 3,800 hotels, across 91 countries. The Hilton Hotel group had aligned its
diversity and inclusion approach with its mission statement which is to become the

‘preeminent global hospitality company- The first choice of guests, team members

and owners alike.’

Diversity and Inclusion Statement for Hilton Hotels and Resorts

‘Hilton Worldwide is committed to being the worldwide industry leader in

hospitality. We hold ourselves and all of our global team members to the highest
standard of integrity, ethics and service excellence. We will achieve and maintain
this status by living our core values: attracting the best and brightest talent, valuing

16
and leveraging the diversity of our workforce, our guests, our suppliers, partners
and shareholders. Respecting the diverse cultures throughout our international
reach, as corporate citizens, we will address the local needs of the diverse

communities in which we live, work, and serve around the world’ (Hilton, 2013)

The Hilton Hotel group does not only value diversity, but they also manage it. They
believe that managing diversity in a business involves aligning all aspects of the

way the organisation operates to reflect its belief in embracing diversity; ‘At Hilton

Hotels Corporation diversity is a serious business... it is not just a component of the

company, but a commitment that is folded into its corporate philosophy, practices
and performance measurements, from its president and chief executive officer,
Stephen F. Bollenbach, to all the team members of Hilton family hotels worldwide,
Hilton invests key resources to ensure that its employees and suppliers reflect the
composition of the communities in which they serve. Using a top-down approach
spearheaded by its Diversity Council, Hilton employees at every level are held
accountable for meeting diversity goals, in addition, the bonuses of hotel and

corporate management are directly tied to meeting such goals’. (Business Wire,

2003).‘It is my objective to maintain a company that is committed to breaking down

gender, racial and ethnic walls,’ (Bollenbach, 2009).

The Hilton Diversity Council is managed by Stephen Bollenbach and consists of

senior management from all areas of the organisation. The diversity principles are

developed by the corporation’s board of directors and are incorporated into all areas

of the business from employment, training, mentoring, purchasing, franchising/hotel

ownership, advertising, marketing, community support to management performance
measurements.

17
‘At Hilton, we strive everyday to prove that diversity works- it creates an enhanced

atmosphere for our employees, and a broader mix of suppliers who can provide

goods and services for our hotels- which in turn cultivates a more well rounded

experience for our customers,’ (Bollenbach, 2009).

The Hilton Hotel group takes diversity management initiatives and applies it in the
following ways;

Human Resource/Training: through its comprehensive in-house training

program, Hilton employees are introduced to its ‘Diversity Works Philosophy’ when

joining the organisation. It provides an orientation program to all new employees

where diversity and inclusion statements are included in team members’ handbooks.

It also provides courses on diversity, which are available to all team members
through the Hilton Worldwide University- an internal online training platform
within the organisation. It ensures that employees are aware of the importance of

transferring diversity principles into everyday work. As part of its ‘Talent

Management Strategy’, the Hilton group has created an inclusive workforce that

involves employees’ thoughts and opinions purely for the purpose of fostering

innovation and competition. In the United States, the Hilton Hotel group has built
relationships with selected leading Historically Black Colleges and Universities
(HBCU) and Hispanic Serving Institutions (HSI) to recruit talented individuals
within hospitality programs. The Hilton Hotel group maintains approximately 60%
minority workforce, 50% of which are female, as well as that, nearly 30% of those
employees are in management positions with 40% of them being women. The
Hilton Hotel Development Programme (HHMDP) selects women and employees of
different origins with proven skills sets and trains them for management positions
through an 18 week programme. Other programmes offered include a task force for

new openings – making sure every employee is aware of the new vacancies that

arise within the group across countries and the elevator programme, which allows

18
the group to find candidates of a standard that would significantly reduce the 15-20

year timeframe for new recruits to become international general managers.

Culture- the Hilton Hotel group seeks to understand the organisations unique
global cultures and ensure that team members are seen, heard, valued and respected.
The senior leadership is committed to investing in programs of international
traditions and customs. As part of this initiative, Hilton has formed an Executive
Diversity Council, comprised of the executive committee and chaired by a president
and CEO. Through H360 (Internal Social Media) the Hilton Hotel group ensures
that people from all over the world can communicate socially and professionally
with each other. It also offers cultural diversity training for those who relocate to
work in another country.

Market place- the Hilton Hotel group promotes diversity within its market place
through initiatives such as the Supplier Diversity Program and the development of
property ownership opportunities for women and diverse groups.

Through the Supplier Diversity Program, it sources the products it needs for its
properties from a wide range of sellers and suppliers. The goal is to create a supplier
relationship that reflects the cultural diversity of its portfolio of hotels and through
its award- winning program, which began a decade ago. The Hilton Hotel group has
cultivated relationships with more than 4,400 women and minority owned
businesses. Through the Ownership Diversity program in 2004, the Hilton Hotel
was the first major hotel to develop an effective program to further educate minority
and female entrepreneurs on becoming owners of its properties. It also promotes
ownership through the National Association of Black Hotel Owners, Operators and
Developers (NABHOOD), the Latino Hotel & Restaurant Association (LRHA) and
the Asian American Hotel Owners Association (AAHOA) as a founding sponsor
and long term supporter.

Recognition of Diversity and Inclusion Achievements – the Hilton group is

widely recognised for the efforts of fostering diversity and inclusion and has

received over 20 diversity employer awards (See Table.3 – Recognition of Diversity

and Inclusion Achievements).

19
Other initiatives taken by the Hilton Hotel group to foster diversity include the
development of a calendar of activities such as the culture awareness week and
celebrations of customs and traditions of different nationalities. It also produces
weekly/monthly internal newsletters where all employees are engaged in a fun and
social way to help increase cultural awareness and keep employees informed of the
latest news. Table 3- Recognition of Diversity and Inclusion Achievements
Type of the Award Awarding Body

Best of the Best 2010 Top Hospitality Companies, Women’s

Professional Magazine

Business of the Year Award Texas Department of Assistive and

Rehabilitative Services

Chairman’s Award Women’s Business Enterprise Council

Top 60 Companies for Diversity Hispanic Business Magazine

Hotel Company of the Year and Apex National Association of Black Hotel
Award, 2009 Owners, Operators & Developers

The CEO/Corporate Leadership Award Southern California Minority Business

Development Council

Top 50 Organisations for Multicultural DiversityBusiness.com

Business Opportunities

Top 100 Companies to Work For Savoy Magazine

Top 50 Corporations for Supplier U.S Hispanic Chamber of Commerce

Diversity

Top 25 Companies for Supplier Hispanic Business Magazine

Diversity

Best Companies for Hourly Workers Working Mother Magazine

20
Top 100 Companies in Orlando for Orlando Sentinel-Hilton Grand Vacations
Working Families

Top Supplier Diversity Program Black EOE Journal

Top Supplier Diversity Program Women’s Professional Magazine

Top Supplier Diversity Program Hispanic Network Magazine

Top Diversity Employer Black EOE Journal

Top Diversity Employer Women’s Professional Magazine

Top Diversity Employer Hispanic Network Magazine

(Source: Data from http://hiltonworldwide.com, accessed on the 09th of June,

2013)

2.2 Diversity Conceptualised as Asset to the Organisation

Many corporations view diversity as something that has the potential to bring some
economic value to the organisation. Therefore, managing diversity effectively often
represents a viable long-term strategy that will bring economic benefits to the
organisation. Two dimensions of the economic defence of diversity were
highlighted by Foster, Jackson, Cross & Hardiman (1988, as cited in Finnerty,
2004). The first dimension sees diversity management as a valuable option because
of the labour market forces behind it. This dimension argues that the changing
demographic profiles of the North American workforce leave organisations with no
(or fewer) options, but to embrace diversity. The change in the labour market supply
constituted the fundamental driving force behind diversity management therefore,
incorporating diversity initiatives into managerial strategies driven by labour market
conditions. The second dimension translates greater workplace diversity into greater
workplace productivity. This is similar to the research carried out by Kotter &
Heskett (1992) who suggested that companies with stronger and inclusive cultures

21
had increased their revenue by 682% as opposed to only 166% of companies with
weaker cultures. The research also found that such companies had expanded their
workforce by 282% as opposed to only 36% of organisations with weaker cultures.
Organisations with a strong and culturally diverse workforce had grown their stock
prices by 901% versus 74% of the organisations with a non-culturally diverse
workforce. This could be due to a number of reasons; according to Andrade (2010),

employing a diverse workforce can allow organisations to expand employees’

language skills. Consequently, this may enable organisations to compete in the

international global market and diversify its customer base, therefore, giving the
organisation a competitive advantage. Foster et al. (1998) pointed out that
organisations that allow change and successfully manage diversity are more likely

to detect and solve problems that do not fit into today’s business models, this is

because, minds of a diverse workforce combined together, bring out more solutions
and different ways of thinking thus increase creativity and productivity. In her
article on the advantages of work place diversity, Laura (2012) found out that

diversity in a workplace can act as a form of support to an individual’s thoughts and

opinions, thereby encouraging innovations. Furthermore, Kenny (2008) analysed

the UK survey on the key drivers for diversity in the workplace. The results showed
that almost 64 % of organisations used diversity to recruit and retain the best talent

which brings different sets of skills and abilities. In her report titled ‘The Business

Impact of Equality and Diversity the International Evidence.’ Monk (2007) outlined

a relationship between equality, diversity and organisational performance as

follows: The first relationship sees, organisational policies at a strategic level, which
are related to positive actions and equality in the workplace. A relationship between
diversity in top team management membership and organisational performance
through organisational policies was identified. Secondly, a positive relationship

between the adoption of organisation equality policies and an employee’s

commitment towards their job, job satisfaction, and life satisfaction including work-
life balance and low levels of stress at work was also identified.

22
There also appears to be a positive outcome on employee performance with
reductions in absenteeism and improved employee relations as a result of
introduction of equality and diversity management initiatives, which appear to
enhance organisational performance.

2.3 Drivers of Diversity Initiatives in the Irish Hospitality Sector and

Implications for Organisational Competitiveness.

While a lot of literature suggests that the management in organisations should value
diversity management to enhance the organisational performance and effectiveness,
there is very little evidence to support the link between managing diversity and
organisational competitiveness in the hospitality sector specifically in Ireland. For
the purpose of this research, the primary focus is on cultural diversity and a brief
examination of the report on managing diversity in the hotel sector by Maxwell,
McDougall & Blair (2000). Another area which will also be investigated is the
report by the Irish Hospitality Institute (IHI, 2012) which addressed practical
guidelines for promoting equality and diversity in the Irish hospitality sector and
profiled general good practice equality and diversity initiatives in Irish hospitality.

According to Maxwell et al. (2000) so far organisations in the hotel industry have
yet to harness the full benefits of managing diversity. A study of diversity
management in practice, which was conducted in San Francisco by Groschl &
Doherty (1999), indicated poor development of diversity management and its
benefits within the hospitality sector in San Francisco. Hughes (1999, as cited in
Maxwell et al., 2000) also conducted another study on diversity management in
Ontario, Canada and concluded that although diversity management is deemed
essential, providing an effective diversity management remains a challenge for
many hotel owners. The study in the UK, where managing diversity in the
hospitality sector is becoming increasingly influential, found that the concern over
the standards of service quality in the hotel sector may, in contrast, encourage an
interest in managing diversity (Maxwell et al., 2000). This is because managing
diversity in the hospitality sector lies in the very nature of its offering.

As people become more diverse, the challenge of responding to cultural diversity in

the hospitality industry will be more recognised because the service they

23
are offering is a social experience that is culturally relative and defined within the
hospitality sector (Christensen, 1993; Maxwell et al., 2000). Due to the diverse
customer base in the hotel industry, managing a diverse workforce is embraced to
provide customers with a personal and quality service from diverse workforces, who
are familiar with the needs of guests from their native countries.

Managing diversity effectively may make an important contribution to an

organisation’s competitive advantage. Moreover, given the changing nature of the

demography of customers, developing a strategic approach to managing diversity

may also have the potential to increase the scope for greater insight into different
populations of customers and to further contribute to the increase of an

organisation’s competitive advantage in the market place.

Therefore, the commercial arguments for managing diversity are important on

various grounds; one of these points is to ensure that the human resource
department utilises effectively the potential of individuals of a diverse workforce to
give an organisation a competitive edge (Cassell, 1996; Maxwell et al., 2000).
According to Maxwell et al. (2000) the potential for managing diversity in the UK
to promote equality in the workplace seems ironic as the track record of its success
in this industry is inadequate and also its reputation for developing better HR
practices is debatable. But despite all this, managing diversity seems to offer real
opportunity for the hospitality sector in terms of quality service improvement which
is essential if an organisation seeks to increase its productivity.

Groschl & Doherty (1999, as cited in Maxwell, 2000) suggested that the benefits of
employing a diverse workforce can be seen in a highly competitive environment,
such as the hotel sector. They also suggested that the problems with shortages of
skilled staff and high levels of staff turnover, caused by demographic changes, can
be alleviated through managing diversity.

When examining the report by the Irish Hotel Industry (IHI, 2012), it is possible to
see 3 benefits of business performance which are directly impacted by the
management of diversity in the workplace.

24
This can be linked to the report by Monk (2007) who outlined a relationship
between equality, diversity and organisation performance, as discussed earlier. The
business performance benefits outlined by IHI (2012) are as follows:

i. Benefits of promoting equality and diversity in recruitment and selection.

ii. Benefits of promoting equality and diversity in employment practice.

iii. Benefits of promoting equality in relationships with customers.

When looking at the benefits of promoting equality and diversity in recruitment and
selection, IHI (2012) suggested that by promoting equality in the workplace, staff
will be confident that they are working for a fair employer which may reduce the
rate of turnover of staff, therefore, saving recruitment costs. As discussed in chapter
one, IHI (2012) also identified the requirements made by the Irish employer under
the Irish Equality Legislation, which is to comply with legal requirements of
promoting equal opportunities in the workplace. By complying with the legislation,
organisations will save legal costs and avoid bad publicity, they will also save time
and money. Employer branding is another advantage for promoting diversity in the

workplace as the company’s image is enhanced in a wider community. Employer

branding describes how an organisation markets what it has to offer its potential and
existing employees (CIPD, 2012), if an organisation provides equal opportunities to
all of its existing employees it brands itself as an employer of choice, which may
help attract new talented employees. Other benefits identified by IHI (2012) were
low levels of absenteeism, staff turnover and of grievance and disciplinary actions.
The report also suggested that, managing diversity in the workforce promotes values
and respect to employees, and if employees feel valued, they will commit to the
organisation, therefore become loyal and engaged in more creative thinking,
knowing that their contribution is appreciated.

When analysing the benefits of promoting equality in relationships with customers,

the report saw that promoting equality in the workplace enhances a corporate image
with prospective customers. Then the organisation becomes the supplier of choice
and attracts customers who will buy products and services from an organisation that
has a good image and ethics.

25
The report also suggested that the hospitality industry recognises the diverse nature
of its customer base, thus employing a diverse workforce allows organisations to

utilise individuals’ expertise alongside their local knowledge of their native country.

This makes it much easier to understand the needs and requirements of their guests
and to serve them efficiently.

2.4 Diversity Initiatives in Irish Hospitality Sector

IHI (2012) outlined a number of general good practice equality and diversity
initiatives in the Irish hospitality sector. According to IHI (2012) these initiatives
are actively being implemented within the Irish hospitality sector. They identified
the following initiatives:

1. Proactively recruiting a diverse workforce through international schools to

ensure a diverse workforce and links with local organisations.

2. Formalised equality and diversity policies and procedures were promoted

and implemented through equal opportunity policies: dignity and respect at
work, harassment, sexual harassment, anti-bullying policies and grievance
policies. These policies were communicated through training and written in

employees’ handbooks and given to employees during their induction.

3. The IHI (2012) also found out that some hotels incorporated equality and
diversity into performance management with managers receiving a bonus if
the equality action plan is actively implemented.

4. Equality and diversity training is also provided for operational, supervisory

and managerial levels including training for interviewers i.e. recruitment
methods and techniques.

5. Other initiatives involved facilitating a language support programme, i.e. the

provision of English language lessons and the availability of training/policy
materials in various languages to assist individuals in learning and
understanding of the policies and procedures in question.

6. Providing various forms of communication e.g. newsletters, notice boards,

weekly/monthly meetings etc.

26
 7. Initiatives such as consultations with employees in relation to equality and
diversity issues, a diversity pin which is worn by every team member of the
hotel as a fundamental statement of the values of the organisation.

8. Establishment of equality and diversity committee, benchmarking against

other hotels committed to promoting diversity and equality.

2.5 Challenges of Managing a Culturally Diverse Workforce

Williams and O’Reilly (1998, as cited in Stahl, Manevski, Voight & Jonsen, 2009)

highlighted a similarity attraction theory which suggested that people are often
attracted to work with people of similar beliefs and values. According to Tajfel
(1992) individuals tend to categorise themselves into specific groups and cast other
people as outsiders. They also favour people from their own backgrounds and make
judgements on people based on their traits and stereotypes. This type of behaviour
can lead to reduced cohesion within a team of individuals who are supposed to
collaborate and work together to accomplish the goals of the organisation. Capehart
(2005) highlighted the language issue amongst individuals of different nationalities,
which may create communication problems and differences of opinions when
making important decisions.

A language barrier can also have an impact on problem solving which may lead to
poor work performance. Cornell & Burgess (2009) analysed the challenges HR
professionals face when dealing with a diverse group of workers. They pointed out
that due to the different levels/standard of education and work experience, HR

practitioners are faced with a challenge of how to effectively utilise workers’ skills

and talents. Rodgers & Hunters (2003) outlined an adaptive management style that
may be applied by managers in order to effectively manage workplace diversity.
They pointed out 3 phases; the first phase is the awareness phase, also known as the
mind-set phase, where managers realise they require skills to implement diversity

effectively and also learn to change workers’ perceptions of their role as managers.

27
The next phase is known as the skill-building phase, where different behaviours of
individuals emerge and are experienced by managers who will then discover which
behaviour works best with each employee.

At this stage, managers learn to use allies in order to discover further ways to
support each employee individually and demonstrate greater flexibility in their
behaviour, traits and skills. The third phase is the internalisation phase, this is where
managers monitor results of the outcome and become increasingly flexible to adjust

to each individual’s style. A few authors propose diversity management training

programmes in organisations. For example, Githens (2011) argues that diversity

must be addressed at individual, group and organisational level. This can be done by
applying a diversity training programme to address the importance of diversity in
the workplace and to increase awareness. Yet, he also pointed out its disadvantage
which is a risk of suppressing true feelings.

Ferdman & Brody (1996) also argued that having a diversity training programme in
place may address discrimination and oppression, but the outcome may result in
pointing fingers of blame instead of providing a basis for common ground.

Sims & Sims (1998, as cited in Ferdman & Brody, 1996) argued that diversity
training programmes is most effective in organisations that are committed to

inclusion and make it part of the organisation’s culture by empowering their

employees’ uniqueness, so they can work hard and produce more. Wheeler (1994, as

cited in Ferman & Brody, 1996 ) also suggested that diversity training programmes
should be closely linked with the business strategy and organisations must clearly
specify what they hope to achieve, in order to see the effectiveness of it.

28
2.6 The Initiatives taken by the Irish Government and Employer Bodies to
Foster Diversity
According to Finnerty (2007) the Irish government has taken initiatives to address
the issues of racism and promote equality with the use of a three year public
awareness programme which was launched by An Taoiseach in 2001.

The aim of the programme was to formulate the conditions for creating an inclusive
society in Ireland where racism is effectively addressed from all angles and
recognise the value and opportunities that diversity brings to the nation. The
programme was in partnership with the Department of Justice, Equality and Law
Reform, IBEC, the community, voluntary sector, the farming sector, National
Consultative Committee on Racism and Interculturalism (NCCRI) and Garda
Siochana.

This project was funded by EU, which was created to address the integration of
immigrant workers into the Irish workforce.

The findings of the study showed that almost one-third of foreign workers felt that
Irish have a prejudiced attitude towards them. This highlighted a need for antiracist
training and intercultural awareness in the workplace.

The studies also showed that a large number of recruited immigrants were coming
from agencies abroad.

These findings highlighted the need for implementing fair procedures in recruitment
and the necessity to comply with Irish legal standards by dealing with recruitment
agencies directly, or through intermediaries.

The report also highlighted the benefits of providing basic information about work
and life in Ireland which can be valuable for workers who are looking for

information on how to settle in Ireland. According to IBEC (2004), the project’s

main objective was to use the findings to assist in designing a number of initiatives
including training programmes for managers, trade unions and language support
tools for foreign workers in Ireland.

29
2.7 Summary
This chapter has outlined the diversity and inclusion statement for Hilton Hotels and
Resorts which is to attract the best and the brightest talent through leveraging the
diversity of its workforce including guests, suppliers, partners and shareholders. The
Hilton Hotel group does not only value and embrace the diversity of its workforce,
but also puts emphasis on embracing a diverse group of its suppliers, partners,
shareholders and, most importantly, its guests. The Hilton Hotel group takes huge
initiatives in order to show its full commitment in managing diversity and the
impact it has on its organisational performance. Managing diversity in the
hospitality sector in Ireland has undoubtedly stemmed from US major hotel
groups.This chapter attempted to evaluate and compare diversity management
initiatives taken by major US hotel groups such as the Hilton Hotel and the

initiatives taken by Irish hotels. The aim was to assess the initiative’s challenges and

benefits.

While there was evidence of benefits and opportunities of embracing diversity in the
work place, the employment legislation was seen to be the main driving force
behind diversity management in Ireland. On the other hand, management literature
suggested an effective enhancement on organisational financial performance, but
there has been very little evidence to support this link. However, findings indicated
positive results in the areas of turnover, absenteeism and overall increased business
performance. One of the objectives of this research will be to establish what forms
of diversity exist in organisations in Irish hospitality sector and how they embrace
diversity and to establish what diversity initiatives hotels in Ireland have in their
organisations and examine the link between managing diversity and organisational
competitiveness.

30
Chapter 3- Research Methodology

This section of the study outlines the objectives and methods of the research
undertaken. It will explain why the chosen methodology was deemed appropriate
for this study and why the sample population was selected. Finally, while this
chapter will outline the details of the data collected, Chapter 4 will discuss the
findings and the outcome of the research in detail.

3.1 Objectives of the Research and Methodology Applied

The method for data collection of this study was the use of primary and secondary
research. The secondary research was examined in the literature review through text
books, journal articles, internet and libraries. Other literature from the Hilton Hotels
group was also accessed. It was necessary to use all the above materials for the
purpose of researching the literature in workplace diversity in the Irish hospitality
sector, research on cultural diversity management in Ireland through books proved
to be problematic, this is because there is very few books with literature written on
the area of cultural divesrity in the hospitality sector. Thus, most of the research was
conducted through journal articles, the internet, the government and employer
bodies such as IBEC, CIPD, IHI and the Irish Equality Legislation Act (1998 &
2004). Although a total number of 58 resources were accessed, not all were
relevant. Yet most of the literature used the qualitative method, which is relevant to
this study. Certain underlying themes arose out of this research which related to the
driving forces behind cultural diversity management, primarily the initiatives taken
by Irish hotels to address diversity management and its impact on their
organisational performance.

The results of the secondary research showed both positive and negative findings.
On the positive side, the IHI (2012) report outlined the initiatives taken by some
hotels in Ireland to embrace diversity, which included formation of formalised
equality and diversity policies and procedures, which are promoted and
implemented through equal opportunity policies: dignity and respect at work,
harassment, sexual harassment and anti-bullying policies and grievance policies.
These findings will require further examinations and that is what the primary
research intends to do.

31
The negative findings of the secondary research indicated that organisations in the
hospitality industry see diversity as inevitable. Rigid contracts, long working hours
and low pay in the hospitality industry make it difficult to attract local workers and

as well as that, demographic changes. This includes migration, which O’Brien

(2005) claims is the main reason for the decline of the population in Ireland, such
reasons leave organisations in the hospitality sector with no option but to employ
workers of different ethnic backgrounds in order to create labour. The findings on
the secondary research also show employment legislation as the main driving force
for diversity management in hotels in Ireland.

This argument brings it to the root of this survey- do hoteliers employ a diverse
workforce out of pride and commitment, like the literature on diversity management
by the Hilton Hotel group suggests, or is it merely because they have no other
option but to comply with the employment legislation of equal opportunities as
discussed in Chapter 1, or is it because of the poor conditions and the nature of the
hotel work and changes in demographic that the employers in the hospitality
industry struggles to attract and retain local workers? Again the primary research
aimed to examine this in further detail.

The objectives of the primary research are as follows:

• To develop a conceptualised view of diversity initiatives in the Irish

hospitality working environment.

• To establish what have been the driving forces behind diversity management
initiatives in the Irish hospitality workforce.

• To investigate whether organisations in the hospitality industry perceive

diversity management initiatives as being an important contributor to their
competitive advantage, in other words what do they perceive to be the
impact of diversity management initiatives taken? This question will be
answered by highlighting opportunities and challenges for managing a
diverse workforce.

32
The primary research adopted a qualitative (interviews) methodology

(See fig.3 – List of interviewees). It consisted of semi-structured interviews where a

list of themes and questions were prepared in advance (See Appendix B for sample
interview questions).The reason this method was chosen was to allow participants to
discuss their experiences freely and in detail. It was also chosen in order to gather a
broad overview if information on the work practices in relation to cultural diversity
management in the Irish hospitality sector today, analysis and issues of concern and
opinions of diversity management initiatives by the HR professionals were also
included.

Fig 3.The List of Interviewees

Date Time Name Job Title Hotel/Location

14/06/13 2-3 pm Allie Kazak HR Assistant Clontarf Castle

Hotel, Dublin
Premises-4 Star

19/06/13 10:30-11.20 am Maebh HR Director Shelbourne Hotel,

Breathnaa Dublin Premises-5
Star

17/07/13 11-12pm Maureen Carroll HR Director Merrion Hotel

Dublin Premises 5
Star

26/07/13 12-1pm Michael O’Neill HR Director Westin Hotel

Dublin Premises 5
Star

26/07/13 12-1pm Ciara Murphy HR Co-ordinator Westin Hotel

Dublin Premises 5
Star

26/07/13 3-3.45pm Triona Brangan HR Director Four Seasons Hotel,

Dublin Premises-5
Star

33
29/07/13 11-11:45 Anne Tribett HR Manager Fitzwilliam Hotel,
Dublin Premises-5
Star

15/08/13 12-1pm Laura Vicincite HR Shelbourne Hotel,

Administrator Dublin Premises-5
Star

15/08/13 12-1pm Mirta Knezic, Guest Relations Shelbourne Hotel,

Executive Dublin Premises-5
Star

3.2 Research Population

For the purpose of this research, it was deemed appropriate to use large,
internationally operating hotel organisations as they are more likely to have HR

related policies and practices in place. The researcher’s selection criteria included a

use of international hotels because they are more likely to be confronted with
geographical, demographical and legal issues. Therefore, they have to respond to
workforce diversity related challenges. It was necessary to include some of the
hotels that have received recognition awards for their achievements in the area of
diversity. Such hotels include: the Shelbourne Hotel Dublin- part of the Marriot
International which, in 2005, it established its own award, the JW Marriott Jr.
Diversity Excellence Award. This was established to recognise the Marriott
business departments that excelled in promoting diversity and building an
environment of inclusion for all (IHI, 2013). In 2009, the Shelbourne Hotel Dublin,
won the Diversity Award and as part of the international hotel chain, it has

formulated a formal training programme called ‘Living Our Core Values’. The

programme focuses on acknowledging people’s differences, by respecting each

individual's culture, background and religion. The programme teaches employees to

work together as a team despite their differences.

34
Another hotel chosen was the Westin Hotel Dublin - part of Starwood Hotels and
Resorts Worldwide, which is inspired by organisations like the Human Rights
Campaign Corporate Equality Index, that validated the necessity of inclusion and
respect. This acts as a business model which plays a critical role in creating a

positive work environment and guest experience. In 2011, the Westin won ‘The

Best Places to Work’ Award, it also received the ‘Hospitality Diversity Awards’

in 2007- winner in a hotel group category. Clontarf Castle Hotel was also chosen to

participate in this study because of its core organisation value i.e. ‘Our Uniqueness

is Our Difference’. Their core goal is ‘People are Our Number One’ and their key

message is that individuals with a disability can make a valuable impact to their
organisation. Other hotels chosen were the Merrion Hotel, the Fitzwilliam Hotel and
the Four Seasons. These are 5 star hotels and are amongst the best hotels in Dublin
and have HR policies and procedures in place. These hotels were chosen because
they are fully Irish hotels which means they are not a part of the US international
group of hotels, except for the Four Seasons Hotel. Therefore, any policies and
procedures on diversity management would be driven by their own management
without any influence or requirement from the group. It was deemed appropriate to
select these fully Irish owned hotels in order to determine whether or not the formal
policies for diversity management in the international hotels in Ireland are expressly
driven by the need to follow the international standards and requirements.

As outlined in Chapter 1, apart from legislation reasons and demographic changes,

diversity management within the Irish hotel industry has stemmed from the
diversity management initiatives of the international hotels in the US, including:
the Hilton Hotels, the Marriot Hotels and the Starwood Hotels . Thus, it would be
appropriate to include these hotels in our research. This includes the Shelbourne
Hotel Dublin which is now a part of the Marriot Hotel group, the Westin Hotel
which is a part of Starwood Hotels and the Four Seasons Hotel which is a part of the
privately owned American collection of hotels.
3.3 Sample Population

The sample population of this research consisted of six hotels that agreed to

35
to participate in this research. There were three hotels which were privately owned
Irish hotels and three hotels which were a part of an international hotel group. The
sample consisted of HR professionals which included: Four HR directors, one HR
manager, two HR administrators, one HR coordinator and one Guest Relations
Executive. They were all asked the same open-ended questions on human resource
policies and practices, equal opportunities and managing diversity. The questions
were framed so the participants could give their own insights in terms of their
understanding, views, experiences and the impact of equal opportunities on their
work environment.

3.4 Exclusions

Independent bars and restaurants were not included in the sample population
because these environments operate at night and this research was carried out during
the day. Therefore, these establishments are not suitable for this research. In
addition to this, the hotels were found to have a better management structure with a
wider selection of samples to choose from.

3.5 Limitations

Researchers such as Richardson, Dohrenwend, Snell and Klein (1965) have studied
issues that can occur in attempting to get valid and reliable data from interviewees.
For example some interviewees can be embarrassed, uncooperative or sensitive by
any questions asked. Although this was not experienced by the researcher during the
study, it is not to say that the information obtained from the interviewees was
completely reliable or valid. It was difficult to obtain a nationality report from all
the participants, out of 6 hotels that participated in this study, only 3 participants
were able to provide a nationality report. To balance this situation, the participants
gave the researcher a nationality count, which provided useful information in
analysing the initiatives taken by the hotels to foster diversity. The hotels who
agreed to participate in this research were all 4 and 5 stars, it was difficult to obtain
3 or 2 star hotels to participate. This could be due to the fact that most 4 or 5 star
hotels are large international organisations and are a part of an international hotel
chain and are more likely to have proper policies and procedures in place influenced
by their hotel groups.

36
To balance this situation, the researcher chose 4 and 5 star hotels, which were fully
Irish and were not a part of an international group, which means any policies and
procedures they have in place would be influenced by their own management.

3.6 A Pilot Study

A pilot survey is a trial run of the main survey and is used to test research
instruments, interviews, estimates etc. It can be useful to uncover issues before the
main research has begun. A pilot study is most likely used by researchers who wish
to use a form of questionnaire to conduct their study as it allows them to test the
acceptability of their questions and identify any deficiencies. It also gives the
researcher an indication of the type of results he or she may obtain (Brannick &
Roche, 1997). This research could also have benefited from a pilot study, however,
the researcher chose not to carry out a pilot study due to the following reasons:

1. Questionnaires were not used to conduct this study.

2. The sample population is too small.

3. Strict time limit.

3.7 Ethical Considerations

It is necessary to consider a number of ethical issues that may arise during the
research and it is important to find out what rules there are before carrying out the
research (Collis & Hussey, 2003). Permission to carry out the study was granted by
the HR directors of the hotels via an email which was sent to all of them (see
Appendix A for sample email). To ensure the research remains ethical, the
researcher will avoid bias in the data analysis and interpretation. Participants were
asked to provide answers from their personal opinions and were not influenced by
the researcher in any way. The data provided was strictly confidential and only for
the purpose of the study. A level of trust was established between the interviewee
and the interviewer. The researcher explained the purpose of the research and
maintained eye contact during the interview. All the questions were asked in the
same tone and body language to ensure that there was no bias present. According to
Quinlan (2011) ethics in business research is the application of ethical principles
and standards and the capacity to distinguish between right and wrong.

37
Therefore, the interviewer demonstrated attentive listening and questioning skills to
ensure they did not suggest any misrepresentations. Cultural diversity can be a very
sensitive topic, therefore it was necessary to identify, prevent and review all ethical
issues before, during and after the study.

3.8 Data Analysis Technique

The primary qualitative research methodology was that of semi-structured, one hour
long interviews. The technique used for the data analysis was that of coding of
transcribed data from interviews and field notes, this process was described by
Merriam (1998) as being a complex action of moving back and forth beween data
and concepts, this process of data analysis allowed the researcher to move between
description and interpretation using both inductive and deductive reasoning. Glaser
& Strauss(1967, as cited in Merriam 1998) described a grounded theory approach
which was also used by the researcher as a technique for analysing data collected,
this theory is a constant comparative method in which categories and hypotheses are
used to analyse data through assigning codes that reflect different categories and
properties to units of information/data by sorting them into groups of like
substances or meaning. According to Merriam (1998), categories used should
reflect the purpose of the research, they should be exhaustive and mutually
exclusive, they should also be sensitive to category content and conceptually
Congruent. Overall the data analysis technique was based on the collection, analysis
and interpretation of the data which was not easily reduced to numbers. The
research concentrated on what is real to the participants, as opposed to the declared
organisational line on diversity issues. In addition, the participants were asked to
give examples of their experiences; critical incidents of equal opportunities and
managing diversity which allowed for a more in-depth evaluation and deduction of
certain variables and opinions of the HR personnel in the hotels. From the data
collected, certain trends were identified and comparisons deducted which will be
discussed further in the next chapter. The interviews were conducted on site, which
allowed for a more personal approach and gave the researcher an opportunity to
highlight the importance of the research topic in the hotels in Ireland today.

38
Chapter 4- Findings and Discussion

This part of the research discusses the findings in relation to managing a culturally
diverse workforce in the Irish hospitality sector. The focus of this research was to
explore what measures organisations in the Irish hospitality sector take to address
cultural diversity in the workplace. The main objectives of the research
methodology was to formulate a conceptualised view of diversity management
initiatives in the Irish hospitality sector, to establish what have been the driving
forces behind diversity management initiatives in the Irish hospitality workforce and
what hospitality sector organisations perceive the impact of diversity management
to be by analysing both opportunities and challenges of a diverse workforce.
Therefore, this section of the research outlines what the findings are as a result of
the qualitative research methods used. The results of the research will also be
compared and contrasted with the findings of the literature review outlined earlier in
Chapter 2.

4.1 Findings- Cultural Diversity Profile

Of the 6 hotels interviewed, there was an overall indication of cultural diversity

being addressed. All 9 research participants showed an understanding of it; their
understanding of diversity extended beyond that of the legal threshold which
concerns disability, sex and race. There were 3 respondents who understood

diversity in terms of ‘equal opportunities’, to them diversity meant simply being

fair to all people who worked in the hotel, looking after people and avoiding any

form of discrimination. They also hit on the ‘business perspective’, in the sense that

equal opportunities in the workplace is about not being biased in any way, if
someone can do the job, then that is all that matters. One participant added that,

‘diversity in the hotel industry comes naturally, because of the nature of the

industry, diversity is inevitable. Therefore, at the end of the day, we only employ

people because of what they can do, regardless of where they are from.’.... HR

manager.

39
The other 6 respondents' understanding of cultural diversity management is that of
embracing a variety of cultures and to acknowledge the cultural differences that are
present within a society. To these participants, diversity was about respecting,
accepting, recognising and valuing individual cultures, religions, race and
differences. One respondent pointed out that cultural diversity is about
acknowledging that the world is a rapidly changing place where there are plenty of
opportunities to travel and interact with people at work. To this respondent,

diversity is about embracing people’s cultures, nationalities, differences and

learning from each other.

Another respondent argued that, ‘Diversity in the workplace is where all sorts of

people are working together’.... HR director. This respondend also mentioned that,

as part of the international hotel chain, her employees can be transferred from one
hotel to the other within the group and because of their ability to speak different
languages while possessing different skills it enables them to serve its diverse group
of guests efficiently.

The understanding of the concept of diversity from all of the respondents is

somewhat similar to the definition provided by the Irish employer bodies discussed
in Chapter 1. However, taking in to consideration the views of the meaning of
managing cultural diversity given in Chapter 1 of this study, only 3 of the research

participants seemed to have understood the term ‘managing diversity’ and could say

what it might actually mean. This contrast in implicitly experiencing and

understanding what managing diversity is, yet explicitly not knowing its definition
can be explained by title of 'managing diversity' evolving from equal opportunities,
as opposed to being distinct from it.

Further examination of the organisational profile in relation to cultural diversity

within the workplace in the hospitality sector reported up to a total of 43 different
nationalities. Of these, the Shelbourne Hotel reported a total of 42 different
nationalities within their hotel, Clontarf Castle employs 42 different nationalities,
the Four Seasons Hotel employs 43 different nationalities and the Merrion Hotel

40
reported a number of 38 different nationalities in their workplace. Whist 54% of the

workforce at the Westin Hotel Dublin are of different origins, including Eastern
European and from other countries around the world.

Although it was not possible to obtain a percentage breakdown of nationalities from

the participants, a nationality report was obtained from some of the participants.
(See fig. 4- Nationality Report from some of the Participants)

Fig. 4: Nationality Report from some of the Participants

Other organisations demonstrated their initiatives in diversity in terms of the

numbers of women occupying management positions and the gender split between
the male and female employees. One hotel showed an equal gender balance of
employees in the management positions which is 23 by 23, in 2012. While another
hotel formulated an on-going project which aimed to encourage female employees
to take up senior positions, seemingly, other hotels are also following this trend.

4.2 Findings- Initiatives and Driving Forces behind Diversity Management

The research showed that all the hotels that participated in this study had some form

41
of policy in place (See fig. 5- Existing HR Policies/Practices in Irish Hotels).

Only 3 out of the 6 organisations had a formal diversity policy in place. When asked
why their organisations did not have a formal diversity policy in place, one

respondent argued, ‘Our organisation does not feel the need to emphasise the issue

of being ‘different’, having a formal policy will only highlight the issue of being

‘different’ which is un- necessary’...HR director. This respondent pointed out that

their purpose is to treat everybody equal, she felt that, highlighting the issue of ‘

being different’ will only put emphasis on individuals differences as opposed to

promoting similarities and a sense of togetherness. Another respondent argued, ‘By

nature the hotel business comes with a diverse workforce, it’s the nature of the

business and most of the time employees do not even notice their differences
because almost every other person is different anyway, the same goes to our guests,

and that is how we do business’..... HR manager. The research shows that 2 out of

the 3 organisations that did not have a formal policy in place were fully Irish owned
hotels i.e. they were not a part of the international hotel group, which suggested
that diversity management initiatives in hotels in Ireland is pioneered by the
initiatives taken by the major US hotel groups such as the Hilton, the Marriot, and
Starwood etc. as stated in the literature review.
Fig.5: Existing HR Policies/Practices in Irish Hotels

Staff Appraisal
Formal Selection Criteria
Equal Opportunities Policy
Bullying/Harassment
HR Policies
Parental Leave
Flexible working practices
Diversity Training
0 20 40 60 80 100

Percentage
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To confirm this argument further, one respondent from the international hotel group
argued that a lot of their initiatives, including diversity training and policies are
driven by their hotel group in the United States, where a diversity program is
designed for them and is adapted to their local culture. According to this respondent
the diversity program act as an eye opener to their staff, who learn about each

other’s cultures, background, religions etc.

Although there were other practices, the one which was most evident was the
flexible working practices. Almost all of the respondents had a flexible working
practice in place. In particular, 4 respondents spoke about the Ramadan, which is
the ninth month of the Islamic calendar and is celebrated by Muslims worldwide. It
is a month of fasting where Muslims are refrained from consuming food and
drinking liquids, from dawn to sunset. Most of the respondents were aware of the
Ramadan, although not in so much detail, yet whenever possible they were able to
allow flexibility in terms of the working roster etc. One respondent also mentioned
the development of an events calendars, where special events from different

countries, such as the Chinese New Year, America’s Independence Day and St

Patrick’s Day, were recorded and celebrated accordingly.

Other initiatives in implementing flexible working practices included providing

flexible working hours to female employees who are on maternity leave, employees
with a disability and other employees with specific needs. There were 5 respondents
who mentioned a holiday policy they have in their organisations; where employees
are not allowed to take more than 2 weeks holiday at one time, but managers were
able to accommodate employees whose native countries required long haul flights
such as Australia, Asia and Africa.

Although putting such measures in place would result in organisational benefits, as

supported by the literature in Chapter 1, a work-life balance and flexible working
practices were seen to improve staff retention and lower absenteeism (Reynar and
Smith, 2005).

43
There were 3 respondents who did not see the relationship between staff retention
and the diversity management initiatives taken by their organisations.

One respondent argued, ‘Hotel work is hard work, to many it’s not a glamorous job,

it always seems to have a high level of staff turnover. I think this is because of the

rigid contracts and unsocial hours therefore it fails to attract workers’,... HR

administrator. The researcher felt that, the argument from this respondent suggested
that, whether the hotel has flexible working practices and diversity management
initiatives in place, there is no guarantee that staff will stay, which suggests that the
issue is not about having an effective diversity management system in place but
rather the nature of the hotel work itself.

This finding contradicts the literature in Chapter 2 where IHI (2012) identified low
levels of staff turnover to be one of the benefits of employing a diverse workforce.
At the same time, it supports Raleigh's (2007) argument on the reputation of the
hotel work, i.e. hard work and non-glamorous, with unsocial hours and rigid
contracts.

However, one of the 3 respondents saw retention benefits through flexibility

measures. This was seen in the case of a few staff members who had difficulties in
understanding the English language; the hotel reviewed its training methods and
formulated a specific standard operating procedure to accommodate these particular
individuals using visual aids and pictures. By doing this, the hotel managed to
utilise the abilities of these employees and retained valuable team members.
Therefore, the argument that diversity in the workplace can decrease the levels of
staff turnover, as reported by IHI (2012) in Chapter 2, may be valid based on the
above initiative from the 3 respondents.

Other cultural diversity initiatives outlined by 4 of the respondents were cultural

celebrations and 'theme days'. These days involved the national flags, songs and
different cuisines which are prepared in the staff canteen, with the food served by
chefs of different nationalities, depending on the type of cuisine served on that day.
This initiative is somewhat similar to the initiative taken by the

44
Hilton Hotel, as discussed in Chapter 2, 2 of the respondents also had a language
support programme, where they assisted staff with poor English by providing them
with tutors and schools. They also have training materials in various languages to
facilitate quick learning. This finding confirms the literature on the initiatives taken
by the Irish hotels to foster diversity in the workplace outlined by IHI (2012).

Also, 2 respondents mentioned that they had a diversity committee in place in their
organisation. This is where the staff meet on a regular basis to discuss various
matters concerning diversity, such as diversity training and development, including
the induction of the organisational culture to new employees. Once again, this
confirms the literature findings of the secondary research in Chapter 1 which
suggests that diversity initiatives in the Irish hospitality sector has stemmed from
the initiatives taken by major US hotel groups such as the Hilton Hotel. The Hilton
Hotel has its very own diversity council, managed by Stephen Bollenback who is
the chief executive of the company, with 33 on-going diversity initiatives. The
group has a diversity council who meet quarterly to create action plans and to
implement diversity policies, performance, goals and initiatives at each hotel.

Out of the 9 respondents, 2 are a part of an international hotel group and have
formulated an employee consultation and communication practice. This is where
they keep track of the effectiveness of diversity initiatives through: employee
consultation forms, online employee opinion surveys, newspapers, notice boards
and departmental meetings.

One respondent also mentioned the circulation of a newsletter with laugh out loud
jokes and cartoons from different cultures in order to understand and embrace
cultural differences.

This research examined the driving forces behind these diversity management
initiatives in the Irish hospitality sector. From the findings relating to the 6
organisations, 3 organisations indicated legislation as being the main driving force
behind diversity management, 4 of the 6 organisations indicated changes in

45
‘workforce diversity as a result of demographic changes’ and 2 hotels reported

‘driven by their top management’ as the main driving forces of diversity

management initiatives in their organisations (See Fig. 6- Driving Forces Behind

Diversity Initiatives in Irish Hotels). Another respondent argued, ‘it’s great that

Ireland is becoming increasingly diverse, hotel work is labour intensive, at one time

foreign staff were all we could get’...HR Manager.

This respondent also mentioned that for a long time the industry has been relying
on a diverse workforce to perform its activities, she felt that it was necessary to look
after these workers by valuing their contribution, respecting and embracing their
differences and find ways of retaining them.

These findings confirm the literature in Chapter 1, where demographic changes in

Ireland and diversity implications on the hospitality workforce were analysed.

O’Brien (2005) identified migration as the main reason for the population decline in

Ireland, with a lot of Irish people migrating to other countries, the need to mix
workers of different ethnic background is inevitable.

Furthermore, the literature in this sections suggests that due to the nature of
hospitality work and its reputation of unsocial hours and low pay, it has failed to
attract local workers which leaves immigrants to be the main source of labour.

Another respondent also argued, ‘I think the industry itself enables us to drive

diversity management within our organisation, leadership is also very important,

our CEO and president are behind the programme called WAP- Women Advanced

Project to encourage women to take on greater roles’... HR co-ordinator.

46
Fig.6: Driving Forces behind Diversity Initiatives in Irish
Hotels

Changes in workforce
diversity
Driven by top management
Driving Forces
behind Diversity Legislation
initiatives

0 20 40 60 80 100

The above findings showed that 50% of the organisations that participated in this
research saw legislation as their main reason for diversity initiatives and
management in the workplace as opposed to moral and business imperatives. These
results have been supported by the findings in the literature review where IHI
(2012) identified drivers of diversity initiatives and highlighted the requirements by
the Irish employers under the Irish Equality legislation i.e. the Employment
Equality Act 1998 and the Equal Status Act 2000. These acts require Irish
employers to obey the law of promoting equal opportunities by acknowledging and
practising diversity management in the workplace. It could be concluded that
accommodating cultural diversity in the workplace provides a better fit with
organisational circumstances than resisting it, by complying with the legislation,
organisations will avoid bad publicity and save legal costs, therefore save them time
and money.

4.3 Findings - Implications of Diversity Management Initiatives in the Irish

Hospitality Sector.

Findings in this section relate to what the 9 interviewees, especially the HR

directors who are the key personnel in their organisations, perceived as being the
impact of diversity management initiatives taken by their organisations. Both
opportunities and challenges were analysed and all respondents had a positive

47
experience with one thing in common ‘a diverse group of guests’. For them, having

a diverse workforce is crucial, as it allows them to serve their diverse group of

guests. One respondent argued, ‘being from the home country of one of our guests is

a huge advantage to us, it allows us to provide a personal service to guests from our

own countries, yet provide them with an Irish experience’.... HR director. The

respondent explained that their guests come to Ireland for the Irish experience and
some of them have very little English, which can make communication difficult, but
being able to communicate with them in their own languages can make
communication easier. The respondent felt that having a diverse workforce to serve
a diverse group of guests makes total sense.

These findings are seen as the main result of promoting a diverse workforce in the
Irish hospitality industry and are supported by the literature review in Chapter 2
where drivers of diversity initiatives in the hospitality sector were analysed. In this
chapter, Maxwell et al. (2000) argued that because of a diverse customer base in the
hotel industry, managing a diverse workforce is embraced to provide diverse guests
with a personal quality service from a diverse workforce that is familiar with the
needs of guests of their native countries. Thus, giving the company a competitive
edge. Out of the 9 respondents that participated in this study, 5 respondents
perceived employee motivation/morale within the workforce to be among the
benefits of employing a diverse workforce. This was seen through diversity training

and development, one respondent mentioned, ‘We have a diversity training

programme on calendar once every month, the training focuses on respecting each
other as individuals and acknowledging different cultures, backgrounds and

religions’...HR director. The respondent explained that the diversity training

programme teaches them to work together in order to accomplish their common

goal, this training has helped them to improve staff morale as they are sending a
message to employees that the hotel values each individual, by providing equal

48
opportunities to every member, so that employees feel valued and respected and
therefore become loyal and motivated.

These findings can be linked to the report prepared by Monk (2007) which was
discussed in the literature review section which outlined the relationship between
equality and diversity and the organisation's performance. The report suggested that
the adoption of equality policies and diversity initiatives can lead to an increase in
employees' commitment towards the job and job satisfaction. This suggests that
managing diversity effectively in organisations can improve employee
morale/motivation as mentioned by the above 5 respondents.

Another respondent saw numerous benefits to include a sense of pride and inclusion

amongst the team, she argued, ‘as we have a very diverse workforce, it is inevitable

that we have a very broad range of working styles, it also means that our service

and standards are very focussed but at the same time allow personality’....HR

coordinator.

From the above comment, the researcher felt that this respondent was embracing
employees' differences and uniqueness, not only that, but she also seemed to
understand the value of it. The fact that employing a diverse workforce brings in a
broad range of working styles allows talent and different skills to shine through,
which has enabled the employees of this organisation to stay focused and provide
customers with a personal service and memorable experience. This relates to the
findings in the literature review, where diversity management was conceptualised as
a corporate asset. In this section, Kenny (2008) analysed a UK survey which
suggested that 64% of corporations used diversity to recruit and retain talented
workers with different sets of skills and abilities. Apart from the advantages and
opportunities of employing a diverse workforce, the participants also highlighted
various other challenges. Out of 9 respondents, 8 saw language as the main
challenge for managing a cross-cultural team. They noted that communication
difficulties when making important decisions could lead to a poor performance.

49
When asked what steps they took to overcome this challenge, one respondent

replied, ‘we recognised this as a big problem and had to change our strategy a bit.’

.....HR director. The same respondent explained that as a 5 star hotel, their
employees must have a fluent English, but there was a time were they used to hire
staff with basic level of English and took initiatives in making sure their company
policies and procedures were fully understood by having them translated in their top
5 languages which are, English, Polish, French, Chinese and Hungarian.

Another respondent mentioned that initially they had staff with difficulties in
understanding the English language, but the hotel took the initiative to review its
training methods and formulated a specific standard operating procedure to
accommodate them. Through the use of visual aids and pictures it managed to
utilise the abilities of these employees which improved their work performance.
Another finding was that out of the 6 organisations that participated in this study, 3
have a language support programme in place, where they assisted staff with poor
English by providing/ referring them to English tutors and/or English schools.

These findings support the literature review in Chapter 2, where Capehart (2005)
highlighted language barriers as one of the challenges of employing a diverse
workforce. He reported that communication problems and difference of opinions
among staff can make making important decisions difficult and can therefore affect

employees’ job performance.

One respondent who did not see language as the main challenge for employing a

diverse workforce identified other challenges, amongst them was a ‘different

humour’ of foreign employees. ‘Different humour causes conflict,’ she said, ‘the

Irish people are known for their sense of humour, other nationalities may not
necessarily get the jokes and may take offence, different values and beliefs can also

cause conflicts’....HR assistant. Although none of the respondents reported

favouritism and/or preferences that may occur among people of the same
background in a diverse workforce, the above comment may confirm the argument
made by Tajfel (1992) in the literature review, which suggested that people tend to

50
categorise themselves into specific groups or may cast other people as outsiders and
may favour people of their own backgrounds. According to Tajfel, (1992) this type
of behaviour can lead to a reduced cohesion amongst the group, therefore if some

employees do not understand other employees’ jokes/sense of humour, as

highlighted by the above respondent, chances are they may categorise themselves
into specific groups and stick within these groups in order to avoid further conflicts
and misunderstanding. The researcher sought to find what measures the respondents

took in dealing with the issue of conflict, one respondent argued, ‘our diversity

training programme is an eye opener for our staff, it allows them to learn about
other individuals cultures, religion and beliefs, therefore the conflict issue can be

eliminated this way.’...HR director. Other challenges mentioned by the respondents

were; a lack of flexibility for some of the staff who found it hard to adapt to the
local culture and 2 respondents mentioned that it could be difficult for foreign staff
to create the Irish experience for guests who visit Ireland expecting the Irish

hospitality experience. One respondent argued, ‘even though staff members do not

have to be Irish they must display a sense of Irish hospitality, we overcome this

challenge by providing training’...HR director. Overall, all respondents had great

experiences of managing a culturally diverse workforce. They also mentioned

individuals' creativity and how they bring in their own unique ideas/skills and
experiences from their own countries as one of the benefits. This notion has been
argued in the literature review, where diversity was conceptualised as an asset to the
organisation. In this section, Laura (2012) analysed the benefits of employing a
diverse workforce and reported that diversity in the workplace can act as a form of

support to an individual’s thoughts and opinions, with many diverse minds

combined, more solutions arise as everyone brings in their unique way of thinking.
Thus resulting in increased creativity and productivity. When asked whether
respondents' perceived diversity management initiatives taken by their organisations

to be an important contributor to their organisation’s competitive advantage in the

51
market place, one respondent argued, ‘we definitely believe that our diversity

management initiatives are an important contributor to our competitive edge’... HR

co-ordinator. The respondent also mentioned that the company organised a variety
of service culture trainings to include Chinese, American and Russian which gave
them a competitive edge, the fact that they have a very diverse range of cultures it
certainly helps them when dealing with guests and customers alike, and can relate to
them in many different ways.

The literature review in Chapter 2 suggests that companies with stronger culture had
increased their revenue by 682% as opposed to only 166% of companies with
weaker culture (Kotter & Heskett, 1992). While findings from the primary research
noted that only 2 respondents saw the relationship between the organisation's
financial performance and diversity management. This may be because it is a
relatively new concept to many hotels in Ireland and limited research exists.

A further study is required to determine the benefits of diversity management and

this area will be relevant to future research. In conclusion, the findings of the
primary research allows the researcher to suggest that in order for hotels in Ireland
to benefit from effective diversity management, it will require a big commitment
from senior management. Such commitments can be applied, for example, in
developing formal diversity managing policies and linking these to organisational
value statements which will signal to employees and guests alike. Training, cultural
celebrations/theme days will be fundamental to ensure an effective management of
diversity practices, whilst at the same time, observing the Irish legal requirement of
equal opportunities. As practices in managing diversity matures, researchers will be
able to further investigate the full tangible benefits arising from managing diversity
in the hospitality sector, with particular reference to Ireland.

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Chapter 5- Conclusion

This research set out to examine the area of cultural diversity, with particular
emphasis on cultural diversity in the Irish hospitality industry. The main aims of this
dissertation were to develop a conceptualised view of diversity initiatives in the
Irish hospitality workforce, whilst establishing the main driving forces behind
diversity initiatives. The research also aimed to analyse the impact of diversity
management on the organisations in the hotel industry by analysing both
opportunities and challenges. As a result of the research carried out, certain trends
emerged: the increasingly competitive world economy, globalisation of
international organisations and the rapid changes in demographic trends and labour
structure which are posing great challenges to management in the hospitality
industry.Therefore, practicing diversity management suggests that a diversity
managing approach is essentially a function of the need for hotels in Ireland to stay
competitive through quality service. However, as outlined in the literature review,
the Irish Employment Legislation and initiatives taken by major US hotel groups
appeared to be the main driving forces behind diversity management in the Irish
hospitality sector.

Although workplace diversity has quickly become a concept in the Irish hospitality
industry, very little research on the topic has been carried out. This study has
enabled the researcher to learn from the literature review, particularly through the
initiatives taken by the Hilton Hotel group which goes beyond the management of
its employees, that although the research shows benefits to the organisations that
manage diversity effectively, there was a lack of evidence to prove that cultural
diversity management initiatives has a positive impact on the organisations'
financial performance within hotels in Ireland. This research indicates that there is a
scope to further develop this concept and that further research into the area of
financial benefits resulting from managing diversity will be required.

53
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58
Appendix A: Email to Hotel HR Directors

Dear Sir/Madam,

My name is Annette Michaela, I am currently undertaking a full time MA in Human

Resources Management at National College of Ireland which I am due to finish in
September of this year, and as part of my academic award, I am required to submit
a thesis on an area of interest within my practice, the topic I have selected is to
analyse the challenges and opportunities of managing a cultural diverse workforce
in the Irish hospitality sector.

I am seeking an ethical approval from you in order to gain access to your high
profile organisation which employs a good number of foreign nationals and kindly
ask if you could participate in this study. The purpose of this study is to address the
issues of the increase of immigrants in the Irish hospitality industry and identify the
benefits of employing a cultural diverse workforce, it hopes to assist managers to
cope with change and allow them to encourage creativity and promote inclusiveness
at the same time comply with the laws and regulations of equality in the workplace.

Although cultural diversity is not an uncommon topic, to date very little research
has been carried out in the Irish hospitality industry which sees over 23% of non-
nationals being employed in this sector, I believe your organisation could also
benefit from this research, it is hoped that the results of this study will be accepted
for publications by HR journals, all ethical issues will be considered and addressed
throughout the study.

I am looking forward to hearing from you soon.

Kind Regards,

Annette.

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Appendix B: Interview Questions.

1. What does the concept of cultural diversity mean to you?

2. What do you think have been the driving forces behind diversity
management initiatives in your organisation?

3. What efforts have you made to foster diversity competence and

understanding in your organisation?

4. What do you consider the most challenging aspect of a cultural

diverse work environment? And what steps have you taken to
overcome these challenges?

5. What kind of experiences have you encountered while working

with other employees of different background than your own?

6. What kind of leadership and management efforts would you/your

organisation have made to make sure commitment to diversity
initiatives in your organisation?

7. As an employer/employee what do you consider to be the benefits

of having a cultural diverse workforce in your organisation?

60