The emerging challengesLearning Objectives•Explain “diversity in the Indian Context

•Outline the payoffs and challenges from diversity in a multicultural company

•Discuss changes in workforce composition and the place of women at work

•Describe various approaches to managing diversity

The emerging challenges•Learning Objectives•Explain the nature symptoms and sources of stress

•Describe the individual and organisational coping strategies

•State the symptoms of burnout

•Outline the techniques to reduce burnout

The emerging challenges

Diversity has emerged as an issue because of imbalanced representation of diverse groups in the workforce

India has not only been a diverse society it has valued and celebrated diversity

Some authors have used the term synergic pluralism to describe Indian culture

In India diverse religious and ethnic groups coming from outside such as Parsee/Jews and Christians were made welcome and encouraged to maintain their identities-while integrating with the social mainstream

The emerging challenges

India is the only country in the world to have enacted legislation on reservation quotas for underprivileged sections of society(termed scheduled castes /scheduled tribes or backward classes)

Diversity has become an issue because of several reasons

There is increasing realization in India that we need to include in the workplace in a planned way from those sections of society that are under presented

Legislation and various commissions are monitoring implementation of the laws

The emerging challenges

World Bank and WTO are putting pressure on paying attention to diversity

Western countries are bringing about such pressures-boycott some products if they find discriminatory practices

With globalization and entry of Indian companies into the global market attention to diversity has increased

Diversity is a competitive advantage for a firm enhancing productivity and profitability(Luthans)

Organizations paying attention to diversity are also more likely to attract and retain talented people

The emerging challenges

There are several bases of diversity : demographic(age/gender/education

-social (religion/language/region/caste/tribes/physical and mental handicaps)

-ideological(different ways of perceiving issues)

The demographic profile in India is changing very fast -younger people are entering the workforce -because of the spread of education legislation and

social movements more women and more members of minority communities are being employed by organizations

organizations considering physically and mentally challenged persons as valuable

The emerging challenges

Diversity is important at all levelsDiversity needs to be promoted in a planned manner-some

values and behaviours promote diversity-empathy/openness /democratic values and supportive

behaviour help to develop a mindset conducive to diversity

By special training –Education Resources Centre in New Delhi under the Campus Diversity initiative

Organisations that encourage dissent and debate will develop a culture of leveraging diversity

Monitoring can help in changing mindsets towards seeing diversity as competitive advantage

HR department can play an important role

The emerging challenges

India is a country of interesting contradictions. People from Nepal,

Bangladesh, Pakistan, Tibet, Bhutan and other neighboring countries have

been pouring into different parts of the country since times immemorial. In

terms of population, it is a continent by itself. The vast majority of Hindus

live in close proximity to Muslims, Christians, Jains, Buddhists and people

from other religious faiths. But for occasional flare ups between people

belonging to different religious faiths, it is a fairly accommodative and

tolerant state. The class divide between the rich and the poor, too, is

tolerated admirably. In states like Kerala, the literacy levels are excellent

whereas in other states like Bihar, UP, MP, Rajasthan the literacy levels are

very poor. We have more number of doctors than nurses. Engineers

outnumber skilled technical personnel.

The emerging challenges•The educated do not get jobs due to lack of relevant skills and

knowledge

• The uneducated do not have anything to live by

• With the result the pains and pleasures of life stare at you in the face

wherever you go

• For managers it’s a challenge to understand the dynamics of society

and initiate appropriate actions that are in sync with local

/political/social/religious/legal and cultural interests of not only internal

groups but external groups-customer /suppliers/community at large

•Those who fail to live up to the expectations of society tend to pay heavy

price

FlashpointsS Kumar’s Nationwide : Plant at Mysore closed on May 31

2005 due to sudden labour unrest over a trivial issue

Honda MotorCycle and Scooter India Manesar: Labour management differences led to closure of plant /chief Minister R.S. Hooda had to step into resolve the strike losses estimate to be around Rs 120 crore

Toyota Kirlosker Bangalore: Unable to resolve wage –rlated disputes workers resorted to strike in April-May 2005 leading to stoppage of production

CEO’s /HR Managers /Supervisors killed on the shop floorMany cases HR managers and CEO’s brutally murdered by

angry workers during 2007-08

The emerging challengesDiversity in the Indian Context

The success of the firms continued success is its ability to

Attract

Motivate

Retain talented employees with divergent backgrounds and expectations and to mould them into a focused and dedicated workforce

Their multicultural backgrounds pose challenges for the firm but also offer an exciting opportunity-of harnessing human potential to firms competitive advantage

Contd

Diversity in the Indian Context

The term ‘diversity’ as we use the term in 21st century is far more than skin, colour and gender. It refers to multifarious differences including religious affiliation, age, disability status, sexual orientation, economic class, educational background, and lifestyle in addition to gender, race, ethnicity and nationality.

Diversity in the Indian Context -contd

Composition of workforce changing -with opening of economy after 1990’s

The presence of young workers-skilled knowledgeable employees occupying positions of importance

The entry of educated women- to address issues on sexual harassment/exploitation/gender inequity /it is no more trivial and insignificant

Contd

What about old hats?-with improved health care facilities older employees have started asserting their rights in terms of equity/better pay/interesting work

The divide between public and private sector employees- is narrowing in terms of pay levels and working conditions

Minorities/Physically disabled people/economically weaker sections of society/backward castes/ scheduled castes and scheduled tribes/ ex- service men etc

-The traditional Indian image of diversity has been one of assimilation/A kind of melting pot wherein differences based on caste /race /religion economic status were blended into an Indian puree

-The socially deprived economically poorer sections of society never raised their voices /why they had to remain at the bottom of the ladder even after six decades of Independence

ContdViolent demonstrations –this has brought about sea

change in the thinking of political parties and industry leadership

They cannot think of postponing issues relating to minorities/backward castes and weaker sections of society-including marginal farmers /landless labour

There is a dramatic change in the thinking and actions of the large majority who till yesterday were mute witnesses to social economic cultural religious exploitation

Temporary workers:-large presence in the automobile /auto component sectors/telecom/construction/real estate/health care/textile etc- is of concern /cannot hire hem on regular basis to be competitive

Child labour:-carpet making /crackers industry-contract labour /various pieces of labour legislation ignored by employers

ContdThe changing force of Corporate India: The Global

workforce -Indian companies are hiring global managers and

workers by hundreds -They realize vital ingredient for success

What is happening?Tata Motors: Global employees 950 out of a total

employee strength of 22,000/reportedly trying to hire over 1000 people for a development centre in the UK from all over the globe

Asian Paints: global employees 1400 out of a total employee of 4600-global assignment for 50 Indian managers

Managing Diversity

In the light of above discussion, managing diversity may look like a contradiction within itself. It means being precisely aware of characteristics common to a group of employees, while also managing these employees as individuals. It is not just tolerating or accommodating all sorts of differences arising out of diverse backgrounds and divergent expectations but supporting, encouraging and utilizing these differing points of view to a firm’s advantage (Bateman and Snell).

Managing DiversityDiversity as a Source of Competitive Advantage

Gaining and keeping market share:-managers having exposure to multiple markets are in demand/case of Hispanic manager/southwestern city predominantly Hisponic –as per Morrison study

Significant cost savings:--huge penalties if companies are dragged to court for discrimination-

-incur high costs in recruiting training relocating replacing employees offering competitive compensation package

-a little bit of compassion ,nurturing attention and equitable rewards would help retain non traditional managers on their jobs /increase comfort level of employees belonging to the same group-leading to cost saving

Contd Increased productivity and innovation:- Morrison study-if

employees treated with respect/enjoyed coming to work

-Multicultural approach had a positive impact on employees perception on equity

- they were found to be more innovative agile and productive

Better quality management:- interaction with colleagues having diverse background helped managers develop openness

Enhancement of organisational flexibility-policies procedures to be kept flexible to accommodate divergent points

-will help organisations to become more flexible /able to respond quickly to environmental changes

ContdOrganisations are taking a more practical view of

diversity especially while trying to convert the challenges into an opportunity

Researches have highlighted the advantages of diversity

-A study by the department of Labour’s Glass Ceiling Institute (1955) showed that the stock performance of firms that were high performers on diversity related goals was over twice as high as that of other firms

-Recent study (Business Week Jan 26,2004) found that companies with the highest percentage of women among senior managers had a significantly higher return to shareholders than companies with lowest percentage

The emerging challengesDiversity: Challenges in Managing a Diverse

Workforce

Diversity can turn out to be a big liability in the hands of a manager who is not sensitive to the needs, concerns and expectations of a diversified work group.

It can pose, lot of problems when a particular section of employees feels neglected or bypassed. The perceived inequity might reside only in the brains of some who might have been pushed to a corner on grounds of poor performance. Subsequent law suits could threaten the very existence of a company.

ContdWhen the reputation of a company, for right or wrong

reasons, takes a serious dent, it may be difficult to attract talent later on. Some of the challenges may seem insurmountable but with commitment and sincerity managers can cross over the hurdles. Here are some challenges that come up:

Unexamined assumptions-Seeing the world from someone else’s perspective is a real challenge/qualified male for front desk job

Lower cohesiveness-Diverse groups are less cohesive than homogeneous groups/lack of similarity/language/culture/experiences-difficult to get along and produce results cooperatively-mgrs to lead and set common goals

Communication problems-Diverse groups carry a lot of emotional baggage in the form of misunderstandings /inaccuracies/inefficiencies/ explain again and again to achieve clarity

Mistrust and tension-Because of limited interaction

and low familiarity with members belonging to a particular community /region/race/religion you may not like to share your feelings and opinion freely

Stereotyping-to se the world in a particular manner based on our background experience/women as not loyal /older workers not willing to learn new skills etc

The emerging challengesWorkforce CompositionThe composition of the workforce is changing in India.

Young, skilled and knowledgeable employees are occupying positions of importance. At the same time, thanks to the opening up of the private sector, employees are no more fascinated by secure, less-paying, routine and standardised jobs offered by the public sector (barring companies like BHEL, NTPC etc.) and other government-owned and controlled organisations. Old employees have grown in number now, thanks to the improved medical and health care. Big private sector firms have been exploiting their talents to conceive, operate and develop new ventures in emerging areas such as oil, telecom, insurance, banking, health care, etc.

The emerging challenges

Young vs Old

•Inexperienced •Difficult to bend and change

•Impulsive •Traditional

•Impatient •Go by the rule book

•Unethical/not always ethically conscious

•Workaholic

•Selfish •Inflexible

•Manipulative •Prefer safe /steady work environments/less risky activities

The emerging challengesOrganisations cannot discriminate on the basis of

ageMcDonald’s a heavy recruiter of older workers-

develop masters programme –training programme to “unlearn” old behaviours while learning new skills

Company’s to understand young employees-come with a lot of expectations

Days of lifetime employment/total loyalty to company and commitment to work thing of past

To attract and retain young brains organisations have to institute appropriate HR policies supported by attractive compensation offers

The emerging challenges

Women at WorkWomen employees today constitute a major

share of the workforce. In India alone, over 400 million are employed in various streams due to a combination of factors like:

Women’s emancipation, Growing economic needs, Greater equality , Increased literacy rate, Suitability for certain soft jobs (public relations, telephone operations, reception counters, etc.).

The emerging challenges• The invisible workforce-Women hold up more than the

sky -Government studies reveal that the female workforce

in India makes a significant contribution to the nations economy and family welfare

According to 1981 census-89.5 percent of women workers are engaged in unorganised sector

-of which a huge chunk of 82.3 percent actively participate in agriculture and allied operations

60-70 percent to total agriculture in villages(Business India March 6 to 19 special feature)

Glass ceiling –A barrier that comes in the way of women advancing to top management positions

The emerging challenges

Managing Diversity: Appropriate

Skills and Strategies In an increasingly multicultural business environment,

managers need to develop appropriate skills and strategies

to overcome diversity related problems:

open communication

Encourage feedback

Awareness building

Diversity training and skill building

Organisational practices

The emerging challengesTo avoid charges of discrimination Managers must (Luthans)Ensure that all types of applicants are sought without any

discrimination(recruiting)

Use of valid and non –discriminators selection tools and devices(selecting)

Emphasise that all employees without exception are eligible to use training and development oriented facilities(training)

Apply performance appraisal systems without any bias or prejudice(appraising)

Reward employee performance emphasising the principle of equity9compensating)

Fix work schedules in a flexible way so that female employees /dual –career couples/disabled workers can participate in all organisational activities without any problem(scheduling)

The emerging challenges

Promoting Diversity through Pluralism

Pluralism refers to an environment in which differences are

acknowledged, accepted and seen as significant

contributors to the entirety.

-A diverse workforce is most effective when managers are

capable of guiding the organisation towards achieving

pluralism.

-According to Jean Kim, five specific approaches could help

organisations achieve this: (Issues in Workforce Diversity,

First Annual National Diversity Conference, San Francisco,

May 1991)

Contd Golden rule approach-Do unto others as you would have them do unto you

Assimilation approach-fit in the existing culture/the dominant culture

becomes the guiding force and others are compelled to fall in line

Righting the wrongs approach-past injustices suffered by a particular group

because of historical inequalities

Culture specific approach-learn about the different culture /especially when

employee takes up foreign assignment

Multicultural approach-to develop an appreciation for both differences of

culture and variations in personal characteristics/attitudinal changes and

interpersonal skills relate to organisational performance/helps in achieving

pluralism since advocates change in management-employees and

organisations systems and practices

The emerging challengesJob Stress Organisational life is quite stressful. Work pressures, tight schedules,

meetings that never seem to end on time, unhelpful colleagues, critical bosses, incompetent subordinates and a host of other irritating factors may all have a cumulative effect in making the lives of modern-day executives quite miserable. As we all know, stress is the body’s reaction to any demand made on it. Perceptions of events, whether positive or negative, activate stress. It is, therefore, a highly individual affair.

Stress may be understood as a state of tension experienced by individuals facing extraordinary demands, constraints or opportunities. The pressures of modern life, coupled with the demands of a job, can lead to emotional imbalances that are collectively labelled ‘stress’. The term ‘stress’ normally refers to excessive stress caused by extraordinary demands (which cause us to lose something we desire), constraints (things that keep us from doing what we desire) or opportunities. (Matteson)

Excel Books

Copyright © 2009, V S P Rao

Organisational Behaviour V S P Rao

Ch-2The Emerging Challenges

Cont….

Two Faces of StressThere are actually two faces to stress, as depicted through Figure.

Optimum Level of StressThe concept of an appropriate dosage of stress is highly important. Stress literature indicates that the ultimate goal is to reduce stress. It may be, but not necessarily. For some people, the level of stimulation is very low; they are bored and need more excitement and challenge. If stress is a neutral concept, then the goal is to reduce distress and maintain eustress. Thus, we are concerned with maintaining balance and equilibrium, realising that it is a dynamic process.

Two Faces of Stress

Constructive stress Destructive stressHigh

Rustout Burnout

Low Low Moderate High

The emerging challenges Nature of Stress As pointed out previously, stress is a state of tension experienced by

individuals facing extraordinary demands, constraints or opportunities. Stress can be either positive or negative. For example, some new work situations can bring us positive challenges and excitement, while others are very disturbing and anxiety-arousing.

The General Adaptation Syndrome Selye considered stress a non-specific response to any demand made

upon an organism. He called the three phases of the defense reaction that a person establishes when stressed as the General Adaptation Syndrome (GAS). Selye called the defense reaction, general because stressors had effects on several parts of the body; adaptation refers to a stimulation of defenses intended to help the body adjust to or deal with the stressors, and syndrome shows that individual pieces of the reaction take place more or less together. The three distinct phases are known as: alarm, resistance and exhaustion.

Symptoms of Stress There are a number of biological, psychological and behavioural changes

which can be symptomatic of individual stress.

The emerging challengesSources of StressOrganisational Factors1. Occupational demands2. Role conflict3. Role ambiguity4. Role overload5. Role underload6. Interpersonal relationships7. Ineffective communication8. Responsibility9. Job change10. Climate within a companyPersonal Factors1. The impact of life change2. Type-A and Type-B personalities3. Externals vs. internals and the belief in external locus of control4. Other reasons

The emerging challenges Some Questions about You and your Job

Yes No

Are you constantly doing more than one thing at a time?

When travelling do you feel the travel time is wasted?

Do you get angry when things do not run smoothly?

Do you feel you never get to really finish one thing before moving on to the next?

Are you constantly being told you work too hard?

Do you work more than 10 hours on a workday?

Are you too busy to develop a creative hobby like gardening, bird-watching, painting etc.?

Do you take only 10 minutes to finish your meals or skip them?

Are you too busy to go outside during the day for at least ½ an hour?

Do you get less than 7 hours of sleep at night?

(if you have a majority of ‘yes’ as answers then it is recommended that you attend courses in time management)

The emerging challenges

Consequences of Stress

Subjective effects: Anxiety, aggression, apathy, boredom, depression, fatigue,

frustration, guilt and shame, irritability and bad temper, moodiness, low self-esteem,

tension, nervousness, and loneliness.

Behavioural effects: Accident proneness, drug use, emotional outbursts,

excessive eating or loss of appetite, excessive drinking and smoking, excitability,

impulsive behaviour, impaired speech, nervous laughter, restlessness and

trembling.

Cognitive effects: Inability to make decisions and concentrate, frequent forgetfulness, hypersensitivity to criticism and mental blocks

Physiological effects: increased blood glucose levels, increased heart rate and blood pressure, dryness of the mouth, sweating, dilation of the pupils, difficulty in breathing, hot and cold spells, lump in the throat, numbness and tingling in parts of the limbs.

Organisational effects: Absenteeism, poor industrial relations and poor productivity, high accident and labour turnover rates, poor organisational climate, antagonism at work and job dissatisfaction.

(Source: T.Cox, Stress, Baltimore, University Park Press , 1978)

The emerging challenges

The emerging challenges Management of Stress

It is not true that employees do not want any stress at work. As the current research evidence indicates, employees are energised and motivated by moderate amounts of stress. What most people want in the workplace is a challenging job assignment followed by moderate doses of competitive spirit, constructive conflict and a zeal to get ahead of others. There are a variety of ways in which individuals cope or deal with stress at work. Broadly, these could be classified into two categories: Individual coping strategies and Organisational coping strategies.

Individual Coping Strategies

Why do some people seem to experience more stress than others or seem to experience stress in situations that leave other people unaffected. Take a moment and answer the following questions to understand more clearly the questions given in Table

The emerging challengesAn article published in the Hindustan Times, dated 31.1.1998

catalogues other individual coping strategies thus: Keep a Pet Say your Prayers Sing Aloud Laughter, The Elixir! Sleep Right Be Good at Loving Spend Time with Children Take a Walk Make Friends Enjoy the Idiot Box Cultivate Interests Dare to Dream

The emerging challenges Organisational Coping Strategies

Stress management includes stress prevention also. This is

best achieved through certain organisational coping

strategies. These include:

1. Role clarity

2. Supportive climate

3. Clear career paths

4. Company-wide programmes

The emerging challenges Burnout

A phenomenon that is receiving great attention in recent times is

the problem of burnout (Pareek; T.V. Rao; Armstrong). Generally

speaking, everyone is a potential candidate for burnout. But the

most likely candidate to face this serious problem is the over-

achiever. In the words of Herbert J. Freudenberger, burnout is a

state of fatigue or frustration brought about by devotion to a

cause, way of life or relationship that failed to produce the

expected reward. It may be defined as the total depletion of

physical and mental resources caused by excessive striving to

reach an unrealistic work-related goal. In his book, Burn out Dr.

Freudenberger poses a set of questions designed to be a self-test

to help us find out if we are in danger of burnout. The test

includes the following questions:

Burn-out self test BuBrnout-Self Test

Are you working more now and enjoying it less?

Do you find it more difficult to confide in others?

Must you force yourself to do routine things?

Are you listless, bored, constantly seeking excitement?

Would you rather be somewhere else?

Do you drink more than you used to?

Do you need a tranquiliser to face the day…..a sleeping pill to get through the

night?

Are you resigned about your future?

Is your need for a particular crutch increasing? (smoking, nail biting etc.)

Emerging Challenges Symptoms of Burnout Some of the symptoms of burnout include: chronic fatigue, anger

at those making demands, self-criticism for putting up with demands; negativism and irritability; a sense of being besieged; and hair-trigger display of emotions. Other symptoms include recurring health problems, such as ulcers, back pain or frequent headaches. The burnout victim is generally unable to maintain an even keel emotionally. The victim may burst out often and express his rage and hostility in totally inappropriate circumstances.

Reducing Burnout W.S Paine suggested four technique to reduce burnout. These are: Identification Prevention Mediation Remediation