Table of Contents

Acknowledgement

Abstract...................................................................................................................................................1

Chapter 1: Introduction........................................................................................................................2

1.1 Background of the Study..............................................................................................................2

1.2 Statement of Problem..................................................................................................................2

1.3 Objectives of the Study................................................................................................................2

1.4 Limitations of the Report.............................................................................................................3

Chapter 2: Literature Review...............................................................................................................4

2.1 Theoretical Review.......................................................................................................................4

2.2 Empirical Review..........................................................................................................................4

Chapter 3: Research Methodology.......................................................................................................6

3.1 Research Approach......................................................................................................................6

3.2 Data Sources................................................................................................................................6

3.3 Timeline.......................................................................................................................................6

Chapter 4: Findings...............................................................................................................................7

3.1 Adopting a Diverse Workforce.....................................................................................................7

3.2 Advantages and Disadvantages of Diversity Management..........................................................7

3.3 Measures for Effective Diversity Management............................................................................9

3.4 Cultural Mentoring as a Tool for Diversity Management...........................................................10

3.5 Barriers to Workplace Diversity Management...........................................................................10

3.6 Diversity Management in Different Companies.........................................................................11

Chapter 5: Conclusion.........................................................................................................................13

References
 Abstract
The term paper is entitled “Workplace Diversity and its Management”. The objective
of this research is to understand the majors for workless diversity management and identify
mentoring as a diversity management technique.
The term paper is divided into five parts which includes introduction, literature
review, research methodology, findings and conclusion. The author has used quality research
approach, utilizing the secondary data sources. The data are taken from reports academic
journals, government and media publications and proverb online sources. The main reason to
choose this topic was the lack of workplace diversity in practice in the Nepalese organization
and the inability of managers to manage existing diversity in organizations. The literature
review is taken as the main base for data analysis and whereby necessary knowledge is taken
and collected. Diversity refers to the variety of differences among people, encompassing race,
gender, age, experiences, talents, skills, and opinions. Every person is different at their birth
and very experiences during they are growth enhances the differences even more. This
creates difference in various factors in the workplace that can directly or indirectly affect
their performance, which is why needs to be managed. The conclusion of the report is that
there are various ways to manage diversity effectively in an organization which includes
effective communication equality among employees diverse teams diversity awareness
proper leadership and so on. Cultural mentoring can as well be used as a tool for diversity
management but it requires an effective mentor.

Key words: diversity, diversity management, workplace diversity, cultural mentoring,

productivity, innovation, employee performance

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 Chapter 1: Introduction
1.1 Background of the Study

During the 1960s and 1970s, the United States for the first time saw the need to
promote workplace diversity. With the introduction of laws relating to discrimination and
equal employment policies, it went much further shortly. It turned out to be a turning point,
because it succeeded in avoiding the deliberation of diverse characteristics such as
"nationality, human race, skin colour etc." to believing in the principle that to be fair to all,
one needs to be committed to treating everyone equally. The Act of 1963 made discrimination
of any kind punishable by law.

We live in times when global corporations and their reach across the world bring
benefits in terms of innovation HR policies as well as challenges in terms of managing the
workforce composed of diverse races and ethnicities. Further, the issue of gender diversity in
terms of more women and third gender participating in the workforce has been a trend that
has accelerated in the last two decades in India and much earlier in the developed countries.

Workplace diversity is the collective mixture of employee’s differences and

similarities (including individual characteristics, values, beliefs, experiences, backgrounds,
preferences and behaviors).Workforce diversity management is the process of creating that
workplace which is inclusive of all employees. This includes ensuring that everyone has an
equal opportunity to succeed and be respected. It also involves creating policies and programs
that support a diverse workforce.

1.2 Statement of Problem

Advances in technology and the advent of a global economy bring the people of the
world closer together than ever before. Given this, fact, business, educational systems and
other entities are investigating ways to better recruit their workforce by attracting and
retaining the best and most qualified workers. The workplace has employees of various races,
castes, characteristics, values, beliefs, color, and so on. These differences tend to increase
more in the coming years. It makes the manager more difficult to make the best use of each of
their talents. Every employee is different and he/she needs to be treated differently. Their
work culture may differ. Along with the challenges, there comes opportunity as well. The
opportunities need to be identified and utilized well. Hence, this report tries on focusing on
the following problem questions:

i. Is diverse workplace beneficial or not?

ii. What are the different ways of dealing with diverse workplace?

1.3 Objectives of the Study

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 The following are the major objectives of the study:

i. To understand the measures for workplace diversity management.

ii. To identify cultural mentoring as a diversity management technique.

1.4 Limitations of the Report

This research has been made on diversity sectors of workplace. It doesn’t contain
details on any other sectors of management. The report is based on secondary sources of data
collection. In some situations the quoted the report may be more applicable, however this
should not be regarded as the fact before more decisive research is done. Hence, there can be
deviation on the facts written on the report and real life conditions.

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 Chapter 2: Literature Review
A literature review is a piece of academic writing demonstrating knowledge and
understanding of the academic literature on a specific topic in context. It is also the critical
evaluation of material. It includes researches and findings of the previous reports on related
context.

2.1 Theoretical Review

Diversity refers to the variety of differences among people, encompassing race,

gender, age, experiences, talents, skills, and opinions. In today’s organizations, workforce
diversity has become an important. Diversity exists in an organization when its members
differ from one another in one or more important dimensions. If everyone in the organization
is exactly like everyone else, no diversity would exist. Diversity can be seen in two
dimensions. Primary dimensions includes core of diversity include age, ethnicity and culture,
gender, race, religion, sexual orientation, and capabilities. Secondary dimension includes
education, status, language, income, levels, etc. Primary dimension are inborn elements are
interdependent and exert an important influence where secondary dimension are adds and
additional layer of complexity to the way we see ourselves and others, in some instances it
can exert a powerful impact on our core identities.

Diversity management is a process intended to create and maintain a positive work

environment where the similarities and differences of individuals are valued. According to
Kreitner, diversity applies to all employees and do not only encompass certain range of
differences but the entire spectrum of individual differences that makes people unique. The
concept of diversity defines differences among people and also their similarities. That is why
managers need to come up with the management style that provides positive impacts on both
the aspects.

Workforce diversity involves having a mix of people with different backgrounds in a

workplace. Age diversity brings a range of perspectives, with younger individuals
contributing vigor and hard work, while older colleagues offer maturity and life experience.
Gender differences add unique qualities, with males often seen as assertive and materialistic,
and females as empathetic and concerned for quality of life. Educational diversity spans from
less educated to highly educated individuals, promoting a broad outlook. Cultural diversity
includes variations in race, religion, language, and traditions, reflecting different ethnic
orientations. Lastly, psychological diversity encompasses varying mindsets influenced by
nature, family background, or social affiliations. Together, these dimensions create a dynamic
and multifaceted workplace, enhancing the overall richness of the organizational culture.

2.2 Empirical Review

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 The concept of diversity includes acceptance and respect. It means understanding that
each individual is unique, and recognizing our individual differences. These can be along the
dimensions of race, ethnicity, gender, sexual orientation, socioeconomic status, age, physical
abilities, religious beliefs, political beliefs, or other ideologies. It is the exploration of these
differences in a safe, positive, and fostering environment. It is about understanding each other
and moving beyond simple tolerance to embracing and celebrating the rich dimensions of
diversity contained within each individual.(Harold, 2012)

Patrick (2010) found that diversity determines not only the effects of the diversity
within an organization but also the level of openness to dissimilarity characteristics among
the organization’s members, work groups, and culture. Despite the technological wonders of
today’s communication, international relations require us to deal with one another on a
person-to-person basis. For this to be effective, one has to overcome language and stereotype
barriers. This may require the mental elimination of terms like alien and view the individual
as having a background that is different (Moran, Harris, & Moran, 2011). Simlin
(2006) found that as the age increases, the perception of diversity openness decreases, and
hence it is important to orient the older employees also about the presence and need of
diversity openness in organizations through training, workshops, group discussions, and so
on. To create opportunities for collaboration, global leaders must not only learn the customs,
courtesies, and business protocols of their counterparts from other countries but must also
understand the national character, management philosophies, and mind-sets of the people
(Hofstede, 1994).

Workplace diversity improves Critical Thinking and Problem Solving Skills,

Employee Growth and Development, Unification of diverse strengths, Promotes Corporate
Attractiveness, Fosters Innovation. Also, it might be difficult to overcome lifestyle choices,
cultural differences, physical or mental disabilities and communication gaps. (Holista, 2018)

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 Chapter 3: Research Methodology
3.1 Research Approach
This research has used a descriptive research approach, utilizing secondary data
sources such as reports, academic journals, and government publications. This approach has
allowed for exploration of workplace diversity in organizations.

3.2 Data Sources

This study have collected data from secondary resources such as reports, academic
journals, government, media publication and proven online sources. The data sources are
based on their relevance and credibility in providing insights into workforce diversity in
organizations.. However, some of the chapters contain older studies due to the knowledge
acquired from the degree. Processing of data has been done on the computer using an
application program called MS WORD, MS EXCEL, etc.

3.3 Timeline
This research has been conducted over the period of four weeks. The first two weeks
were dedicated to collecting the relevant secondary data sources, and the remaining two
weeks were used for data analysis and report writing.

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 Chapter 4: Findings
3.1 Adopting a Diverse Workforce

The concept of workplace diversity might differ from company to company. “No one
wants to pay a company for services and not get value for money”, a company that would
employ a diverse workforce aims improve its productivity and income. When considering to
adopt a diverse workforce, some important factors and attributes needs to be taken into
account, which involves the following:

• Company type
Companies differ in size and activities, and come with its own rules and company act.
Most public companies tends to employ more workers due to its size as compared to private
companies, the same applies to other types such as limited liability companies, unlimited
companies, Government companies and so on. Employing diverse employees would 13
mean, being convinced that the company type will do well or much better with them on
board.
• Organizational culture
There are five components to organizational culture that involves its practices, vision,
value, people, place, and its history. Each organizational culture is unique and differ from that
other company. Therefore any decision made by a company about workplace diversity is
based on the company’s beliefs and norms.
• Company location
Companies that operate in various regions have no choice but to adapt diverse
workplace. However some companies have the ability to decide whether or not to employ a
diverse workforce especially when they are situated only in their country of origin.

3.2 Advantages and Disadvantages of Diversity Management

3.2.1 Advantages

 Increased creativity: In addition to having a variety of different perspectives from

people with different backgrounds, the exposure to a such variety leads to increased
creativity. When you put together people who see the same thing in different ways,
you are more likely to get a melting a plot of fresh ideas, thus improving the creativity
of your workforce.
 Higher innovation: Diversity in the work place leads to the higher innovation rate. It
is more likely to be innovation leaders in the markets. In a diverse workplace,
employees are exposed to multiple perspectives and worldviews. When these various
perspectives combine, they often come together in novel ways, open doors to
innovation.

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  Faster problem solving: Companies with higher workplace diversity solve problems
faster. Employees from diverse backgrounds have different experiences and views,
which is why they are able to will bring divers solutions to the table. Thus, the best
solution can be chosen sooner, which leads to faster problem-solving.
 Better decision making: Workforce diversity leads to the better decision-making
results. When employees with different backgrounds and perspectives come together,
they When employees with different backgrounds and perspectives come together,
they come up with more solutions, which leads to the more informed and improved
decision-making process and results up with more solutions, greater workforce
diversity achieve greater profit.
 Increased Profit: Companies with greater workforce diversity achieve good amount
of profit. They found out that companies with more diverse top teams were also top
financial performances. Companies with a diverse workforce make better decisions,
faster, which gives them a serious advantage over their competitors. As result,
companies with diversity in the workplace for the increased profit.

3.2.2 Disadvantages

 High Cost of Diversity Management: To increase job satisfaction, workplace

diversity management could sometimes be very costly. In recent times, there are lots
of Diversity management program available where companies could choose from,
taking into account the size of the company and it’s employees. Some training
programs require a high travelling and participation cost.
 Discrimination: Discrimination can be a hidden aspect of a poorly managed
workplace. When a worker is being discriminated, it affects his ability to perform well
and it also affect the perception of equity and raises issues of litigation.
 Communication issues: Workplace diversity can negatively impact communication in
the company. Even though spending time with employees by getting to know them
helps reduce and in some instances eradicate communication barriers during a long-
term, co-workers orientation periods and an individual´s first impressions can be
difficult to control when culture clash.
 Myriad Accommodation: Although the premise of workplace diversity is mutual
respect, making way to accommodate each diverse worker´s request can be
burdensome of employers, which makes it difficult to manage diversity. Some
employee work constraints such as race, religion, country of origin and gender can
sometimes be overwhelming if the diversity in the organization tends to be so much to
the extent that the company has to employ a fulltime staff to keep track of
accommodating the employee needs.

For example, some Muslim employees may decide not to work on Fridays, as it is a
special day for prayers. In such instances employers has to make provision for
someone to take their shift when the need arises. Incorporation issues: Social
incorporation at the workplace cannot be influenced to the maximum degree. Forming
exclusive social groups is often a natural process that cannot be controlled sometimes.

8
 Therefore, companies tend to experience some degree of informal divisions amongst
their workers there by creating conditions where diverse employees avoid having
contact with each other during leisure times and when work is over. Although this
scenario doesn´t seem fundamentally wrong, it can reduce the effectiveness of
knowledge sharing amongst teams and hence decreasing productivity.

3.3 Measures for Effective Diversity Management

To ensure the management of these divers’ workforce there are seven steps of effective
diversity management, and they are: -

a. Effective Communication:
This is a critical factor in diversity management and keeps all diverse
workforce members engaged and coordinated. Hence, the HR management
emphasizes the need for feedback, effective communications, disseminating
information on security, best practices, overcoming linguistic and cultural disabilities,
etc. Often signs are placed for cultural diversity in management and inclusivity
creation, so all employees understand diversity management and the creation of an
inclusive environment.
b. Employee Equality:
Each and every member needs to be treated with respect and equality to make
diversity management succeed. A diverse environment has no place for personal
considerations, biases, cultural assumptions, prejudices, work stereotypes and more.
Thus, every individual needs to treat the other as a unique and contributing individual
with company policies reinforcing the laws and creating various types of diversity
management.
c. Encourage Diverse Teams:
Making people work in diverse teams helps them understand each other better,
with mutual respect and teamwork being strengthened in scenarios beneficial to
diversity management. Thus, a diverse team’s shared abilities bring diverse skills,
personalities, and abilities to the drawing board when looking for innovative solutions
and product development.
d. Sensitivity Training and Diversity Awareness:
When workplace diversity is new to employees, the older employees will need
this kind of importance of diversity management training to develop a homogeneous
culture, equality and respectful culture at the workplace. Companies need to focus on
how to react when people are offensive, respect different opinions and be open-ended
to adapt and accept other people’s beliefs that are bound to be different from their
own. Sensitivity training is also an important part of diversity management and is
critical to put all employees on the same page as far as diversity policies are
concerned.
e. Leadership:
This is a critical factor to allow workplace diversity to succeed. The
company’s leadership needs to assume responsibility for diversity management

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 strategies, formulating diversity goals, measures, policies etc. and implementing them.
When such leadership is absent, workplace diversity and its management cannot
thrive. Supporting leadership is best suited for a diverse weorkplace.
f. Creating Conditions for Common Organizational Culture:
Organization must develop cross-cultural training programs relating conditions for
development of a common organizational culture and climate. Such common culture will
create an environment in which a diversified work force can co-exist comfortably,
peacefully and happily.
g. Career Development Programs:
There must be programs for identifying each individual’s strengths, weaknesses
and potential for career development; so that the organization can capitalize on the
peculiar features of a diversified workforce. In fact, people should be valued for their
difference and variety.

3.4 Cultural Mentoring as a Tool for Diversity Management

In a Business sense, every company has its ´Company culture` that entails different
form of activities for various working positions as well as a general guide to the company. In
a company, a cultural mentor can be assigned whose job is to help both older staff and new
recruits understand the culture in the new context. In particular, it is the duty of the cultural
mentor to explain to the mentee how things are done in the company, and how behavior
should be interpreted. Some companies usually regard the Human Resource Department or
Human Resource Manager as a company mentor. Whereas other companies invite or in some
cases employ an individual or group of people to serve as mentors to the company from time
to time. The ultimate goal of a mentor is to be able to help the participants or employees
realize their own potential to enable them to effectively utilize it. Based on the above views
and explanations, a Cultural mentor can be defined as an individual or a group of persons
who serves as a role model to formulate an objective. A cultural mentor should possess
awareness about the organization and global environment, positive attitude, networking
experience and professional characteristics.

Cultural mentoring is one of the proven ways to orient manager and employees both
new and old to cope with the working environment and their responsibilities. So many
benefits are derived from a mentor of whom some are as follow:

• The mentor could give counselling about personal problems as well as job related ones.

• The mentor could provide opinions or suggestions to the company when things go wrong

• Managers or employees tend to perform very well by developing more selfconfidence when
they are being mentored

3.5 Barriers to Workplace Diversity Management

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 Managing a diverse workforce comes with potential challenges that
mentors and leaders must overcome. Some common barriers to implementing
diversity management are:

• The difficulty in balancing career and Family: Women are most likely to be
presented with this challenge. In modern culture, women are still expected to take care of
young children and to manage the household. Although attitudes are shifting, women still
bear the greatest household responsibilities.

• An unsupportive and hostile working environment for diverse employees: Diverse

25 employees are excluded from social activities and are thus prevented from forming
networks among other employees.

• Fears of discrimination: People fear of being discriminated upon and therefore are
reluctant to apply for jobs where there are different nationalities than theirs.

• Diversity is not seen as an organizational priority: Employees may not view

diversity efforts as work contributing to the success of the organization.

• Resistance to change: People resist change for reasons such as fear of failure,
mistrust and peer pressure. It is up to leadership to overcome these challenges by properly
informing and managing changes and the perceptions when they feel threatened.

3.6 Diversity Management in Different Companies

The reports objective was to understand the diversity management in

organizations. The finding through references and online sources suggests that many big
companies practice diversity more than that of smaller ones. Ford Company, for reference,
has set up a Resource group that sustainably educate the employees on diversity at the
workplace and also guide them in their personal lives as well as their professional careers. As
a global business, the company believes that surviving in a multicultural world requires
diversity in a more sustainable manner. The case is similar with Coca Cola Company, which
can be seen in their website and in every commercial as well. They have started publishing
pay gap reports as well.

Amidst the recognition of global companies for workplace diversity, Nepal lags far
behind. The reservation policy executed by the Government of Nepal since 2007 has
contributed to increased inclusion and diversity in public and civil service sector, though
there is a long way to go. Among the 80 thousand civil servants, only 15 percent are women.
In terms of race and ethnicity, 56 percent Brahmins, 14 percent Chhetris, 15 percent Janajatis,
8 percent Madhesis, and 5 percent Dalits are employed in the civil service. There is lack of
statistics regarding the private sector. Most of the Nepali businesses are family based, run by
male members. Out of 28 CEOs and 26 DCEOs from 28 banks (27 A-class commercial banks
and Nepal Infrastructure Bank), only four are women. For the first time in Nepal’s banking
history, a woman has been appointed as a Chief Executive Officer (CEO) of a bank. Mega
Bank recently appointed Anupama Khunjeli as the CEO. In 2016, the state-owned Nepal

11
Telecom appointed Kamini Rajbhandari as a managing director of the company ( The
Kathmandu Post). Even in the central banking with over six decades of history, only one
woman has made it as far as deputy governor, which was in 2021 when Dr. Nilam Dhungana
Timsina assumed the rank. A very few other women such as Ujita Nakarmi and Punam
Shrestha can be seen in leadership in hospitality as well.

12
 Chapter 5: Conclusion
To sum it up, this paper looked at how workplaces can include and manage people
from different backgrounds. We checked out big global companies like Ford and Coca Cola,
who are doing well in this, and then compared it to how things are in Nepal.

We learned that having a diverse workplace, with people of different ages, genders,
and experiences, can be really good for a company. But it also comes with some challenges,
like balancing work and family life and dealing with people's fears of being treated unfairly.

The paper suggests that for a workplace to handle diversity well, everyone should be
treated fairly, different teams should work together, and there should be mentors who help
people understand the company culture. These things make sure that a diverse workplace is
not just a nice idea but something that really works for the company.

We also found out that some big companies are doing great in managing diversity, but
Nepal has some catching up to do. Even though the government has rules to include more
people in jobs, there's still a long way to go.

In the end, the paper shows that having a diverse workplace is not just about being
fair; it's also a smart move for a company's success. It's like making sure everyone gets a fair
chance and that the workplace is a great and innovative space for everyone.

13
 References
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Burlington, VT

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International encyclopedia of the social & behavioral sciences.

Diversity, equity and inclusion. (n.d.).

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Ford. (2020). Diverse Workforce. Ford Corporate.

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Patrick, H. A., & Kumar, V. R. (2012). Managing workplace diversity. SAGE Open, 2(2),
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The Kathmandu Post. (n.d.). Diversity in workplace. The Kathmandu Post.

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Yrkeshögskola, A.-. N. S. (2013). The impact of workplace diversity on organisations.

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