LEADING AND

MANAGING CHANGE -
MG625
MANAGING CHANGE
• ‘Diversity is:
• The concept that people should be valued as individuals for reasons related to business interests, as well as for
moral and social reasons. It recognises that people from different backgrounds can bring fresh ideas and perceptions
which can make the way work is done more efficient and products and services better’

(University of Warwick, 2003)

• Equality is:
• ‘... about compliance, and diversity is about differentiation. Equality is about creating a level playing field, diversity
is about valuing individual differences to enhance business results’

(Rajan and Harris, 2003)

• Surface vs. Deep-Level Diversity
• “Surface” diversity refers to demographic, mostly visible background characteristics of people
• “Deep-level” diversity refers to attitudes approach of people.

DEFINITIONS
 DIVERSITY
S TAT E M E N
TS
• “Create the kind of working
environment and culture that
recognises and values people’s
differences…Draw on individual
talents and viewpoints” (
www.bbc.co.uk)

• “Reflect and serve the

communities in which we
operate…create a company where
employees’ different perspectives
are valued and their talents fully
employed” (
www.careers.barclays.co.uk)
 Equal Opportunities Managing Diversity
Concentrates on removing Focuses on maximising
discrimination employee potential
Seen as an issue for Seen as relevant to all
disadvantaged groups employees
Seen as an issue to do with An issue which involves all
P&D practitioners managers
Relies on positive action Does not rely on positive
action

C O M PA R E & C O N T R A S T
(Kandola and Fullerton,1994, cited in Marchington &
Wilkinson, 2005)
T H E U LT I M A T E A I M ?
( L A FA S T O , 1 9 9 2 )

Valuing Managing Complying

 • The world and the workplace are becoming increasingly diverse
• This trend is inevitable, thus organizations must accept this new
demographic reality
• Implications: need to hire and develop the most talented
individuals from varying backgrounds in an effective and fair
manner.
• Diversity is a fact of life, and spreading fast
• To sum up – we need to ‘live with it’

SCHOOLS OF THOUGHTS - 1
GREENHAUS ET AL 2000
 • Diversity is inherently healthy and beneficial in its own
right.
• Employees from different backgrounds will bring different
strengths and perspectives
• Resulting in enhance effectiveness.
• To sum up – we can benefit from it

SCHOOLS OF THOUGHTS - 2
GREENHAUS ET AL 2000
The Universal Declaration of Human Rights and freedoms set out with regard to race, sex, language,
Rights, 1948 property, birth, national or social origin, political or other opinion
Equal Pay Act, 1970 Equal pay if carrying out like work or work rates as equivalent

Sex Discrimination Act 1975 Forbids discrimination on the grounds of sex or marital status
Race Relations Act, 1976 Unlawful to discriminate on the grounds of colour/race, nationality,
ethnic/national origin
Disability Discrimination Act, 1995 The law offers protection to people with a disability – make
reasonable adjustments
Employment Equality (sexual orientation Makes discrimination on the grounds of sexual orientation and
& religious belief) Regulations 2003 religious belief unlawful
Employment Equality (Age) Regulations, Aim - prohibit direct/indirect discrimination at work on the grounds
2006 of age

EQUAL OPPORTUNITIES
L E G I S L AT I O N
 Consolidates previous legislation

Protected characteristics (age,

disability, gender reassignment,
marriage, pregnancy, race, religion,
sex, sexual orientation)

Gender pay reporting; no secrecy

Different ‘discrimination’:

• Direct
• Indirect
• Harassment
• Associative
• Perceptive

EQUALITY ACT 2010

 • High Court Judges: 91 men, 17 women; 84 white, 4 BME (black
and minority ethnic); ONE minority ethnic woman judge.
• One in 4 Pakistani men in Britain are taxi drivers or similar.
• Women occupy 77% of administration and secretarial posts but
only 6% of engineering and 14% of architects, planners and
surveyors.
• Disabled men experience a pay gap of 11% compared with non-
WHY disabled men, while the gap between disabled women and non-
disabled men is double this at 22%.
NEEDED? • Some research suggests that Black graduates face a 24% pay
penalty.
• Disabled women experience a 31% pay penalty compared to
non-disabled men
• Women more likely to have a degree (28.4% compared to 27.7%
of men) BUT men are twice as likely to be a manager, director or
senior official.
(Source: Equality and Human Rights Commission, 2010-15)
 STEROTYPE
S
• Ethnic minority people are focussed in some industries –
Chinese/Bangladeshi people in catering for instance,
Afro-Caribbeans in the health service.

• There are different gender patterns of work among some

communities with Afro-Caribbean women taking on
professional work and Bangladeshi women being less
likely to work.

• Early studies looked at how married women combined

paid work with domestic chores.

• Government policies saw women as domestic labourers

who also had jobs – domestic roles were paramount.

• Working mothers were blamed for delinquency among

children.

• Workplace culture is masculine.

• Examples include: girly posters, male centred

conversation, and sexual harassment.

• However, males crossing into female work experience

similar discrimination.
G E N D E R P AY G A P
AND AGE Gender Pay Gap by Age
30
27.3
24.9
25
•(ONS, 2015; see 21.3
20
http://www.ons.gov.uk 17.2
/employmentandlabou 15
12.2
13.2
11.5 10.9
rmarket/peopleinwork/
10 7.6 8.2
earningsandworkingh
5 3.9
3.6 4.2
ours/bulletins/ 1.4 0.6 0.6
annualsurveyofhoursa 0 -1.1 -0.8
16 to-1.7
17 18 to 21 22 to 29 30 to 39 40 to 49 50 to 59 60 and
ndearnings/ -2.8 over
-5
2015provisionalresults
#gender-pay- -10
-10.2
differences) -15

All employees Full-time Part-time

 G E N D E R PAY G A P S – E U
(2014)
• Estonia: 28.3% • EU:
• Germany: 21.6% 16.1%
• UK: 18.3% (Equal Pay Day: 10 November)
• (US:
• Netherlands: 16.2% 20%)
• Norway: 14.9%

• France: 15.3%

• Belgium: 9.9%

• Italy: 6.5%

• Slovenia: 2.9%

(
http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language
 “a preconceived
perception or image
one has of another
Stereotyped
jobs person based on that
person’s membership
A
an ttitu
d v de so s
f in a particular social
al u s Job rent
es pa group or category”
B A R R I E R S T O
A C H I E V I N G
E Q U A L o
in
les ty – t
R c i e no
Fle
em x i b
p l o i l i ty
so ality ys
O P P O RT U N I T I E S u
eq alw eted
a
y
t men f
o

o v
c

Aptitude

How would you address these if you were

- An Organisation
- A HR Manager
- An employee
Starting pay is frequently individually
negotiated
• (men often have higher previous earnings so can
negotiate a higher starting rate)

Length of service
• (Men generally have fewer career breaks)

Broadbanding
• (can lead to a lack of transparency)

Market allowances
• (not evenly distributed)
Different pay structures and negotiating
bodies BARRIERS
• (some jobs are done primarily by men, some by
women so direct comparisons are hard to make) TO
Job evaluation ACHIEVIN
• (may perpetuate old values and be subject to
managerial manipulation) (Torrington et al, 2009)
G GENDER
CIPD (2008)
BASED
• suggest the historical notions of man as the main EQUAL
bread winner, concentration of women in certain job
roles and in part time roles, women missing out on PAY
promotion due to maternity leave, childcare
requirements
 G E N E R AT I O N G A P S ?
Baby Raised in hardship. Lived through Bill Gates,
boomers improvements to education, Donald
housing, technology. Luxuries & Trump,
comfort? Richard
Branson
Generation Global political events – cold war, David
X Vietnam War, Berlin wall. More Cameron,
open to diversity and embracing Gordon
difference. Cynical? ‘Laddism’? Ramsay, the
Beckhams
Generation Millenials, tech savvy, 24/7, 365 Most celebs!!
Y connected, Smart phones, Mark
tablets, social media, selfies, Zuckerberg
work-life balance
Generation Children of Gen X/Y, connected,
Z high tech, social media, mature
earlier, ‘worthy’ – future?
 In 2012, 29% of total employment
were people aged over 50. Set to
grow to 35% by 2022

38% of employees feel that their

MANAGING organisation does not take into
AN AGE- account that the population is
DIVERSE ageing in its processes and
procedures
WORKFORCE
What problems do you think it could
create when there are different age
groups working together?
CIPD March 2014
What are the benefits?
 1. Monitoring applications in terms of gender, race, disability
2. Taking account of a broader range of qualities when selecting
candidates
3. Notifying job centres of vacancies
4. Advertising vacancies beyond conventional/ mainstream
media
PROMOTIN
5. Setting recruitment targets to achieve a workforce reflecting
G customer base or local community

DIVERSITY 6. Providing recruitment documents in other formats e.g. large

print
7. Appointing people who may not exactly match job
requirements
8. Making changes to the way that work is organised
(IRS Employment Review,2007)
 1. Monitoring recruitment and/or staffing information to gain data on
gender, ethnic origin, disability, age etc

2. Training interviewers on diversity issues and the impact of

stereotypes

3. Operating policies that go beyond basic legislative requirements

4. Checking that any tests used are valid, reliable, culture free and
were tested on diverse norm groups

5. Ensuring the recruitment team reflects diversity criteria

ENCOURAGING
DIVERSITY IN 6. Advertising vacancies beyond traditional media to target under
ORGANISATIONS represented groups

7. Using specific images/words in recruitment advertising to appeal

to a wider audience

8. Providing recruitment documents in other formats (e.g. large print)

9. Setting recruitment targets to achieve a workforce reflecting your

customer base or local community

(CIPD, 2008 and 2012)

 • Remove maximum recruitment age (yet Royal Mail set the age at 64
based on the justification that it take six months to become
competent and the retirement age is/was 65)
• Do not include specified number of years experience e.g. ASDA and
Cancer Research now refer to type of experience not length. HSBC
ask for ‘demonstrable experience in…’
• Reduce exposure to age e.g. HSBC use online screening, online
DIVERSITY testing, telephone interviews. Marks and Spencer use electronic
screening so a potential candidate has met the criteria without
S T R AT E G I E reference to their age. Remove from CVs/Application forms

S • Positive action e.g. Inkfish call centres set a 10% target of workers
over 50
• Advertising Language – remove terminology such as ‘dynamic’
‘mature’
• Create links with the community to reach particular age groups e.g.
store managers liaise with local groups such as the over 50s club
• Train recruiters – Marks and Spencer train all those involved in
recruitment and selection. HSBC is introducing accreditation for its
recruiters
 • Clear statement of EO Policy
• Monitoring recruitment, training, turnover, etc
• Equal access to training and career development,
promotion, benefits and entitlements, for example
• Recognising the strengths of diversity – no irrelevant
job requirements, for example
• Providing access to counselling and support
THE HR
CONTRIBUTION • Considering flexible work patterns
• Taking individual grievances / cases of discrimination
seriously
• Objective and fair use of discipline

• Q: How seriously is the HR Contribution treated?

T HE BU SI NESS PROVEN DEBATABLE INDIRECT

BENEFITS? Access to talent Promoting team

creativity
Satisfying work
environments

Easier to recruit Improving Improving morale

•(Kandola & Fullerton, 1998) scarce labour problem solving and job
satisfaction
Reduced Better decision Improving
absenteeism making relations between
and turnover groups

Enhanced Improved Greater

organisational customer service productivity
flexibility

Increased sales Competitive edge

to minority
groups
Improving quality Better public
image
B A R R I E R S A N D L I M I TAT I O N S

Can fairness always be achieved?

Is setting targets contrary to the philosophy?

It is about cultural change so will take time to achieve

Can increase conflict as many opinions make it hard to agree on solutions

CIPD (2007) identify three issues:- Internal communications will be a challenge
The above two points will potentially lead to increased cost

New organisational structures such as outsourcing will potentially present barriers

Notion that providing some training is enough

Evidence that diversity programmes are not being evaluated – what is the impact of diversity policies on
organisational performance? CIPD suggest the evidence is scarce.