Ethnically Diverse Workforce
The management of people from diverse cultural backgrounds in organizations is today the custom for Human resources Managers in New Zealand. The country is home to multinationals from different countries. The labor force in New Zealand has been internationalized with the immigration patterns, thereby calling for industries to shift their focuss onto ethnic diversity (Ulrich & Brockbank, 2005).
Human resources Management is a utility of business that is concerned with organization of relationships between people in their status as employers, employees and senior members. These relationships give individuals the rights and responsibilities that entitle them to equal and fair treatment and may raise concerns that are ethnically inclined. Several banks and other service providers in New Zealand do not just rely on technology but also workforce management in order to sustain their competitive advantage. In order to improve the overall performance of the organization, since the level of their management significantly impacts their success (Jones et al, 2000). In the banking industry, human resource management includes the management of diversity and strategic performance of the laborforce. Banks that have integrated ethnically workforce have demonstrated better performance unlike those that do not since diversity combines a variety of ideas that are ideal for the success of the business.
The workplaces in New Zealand are quite distinct due to the influence of Moori and European culture (Jones et al, 2000). For example, the whanau interviews (cultural selection and promotion method) by the Moori encourage orgaizations to remain committed to their heritage. There is also an increasing population of Pacific Island people, Asians and a variety of other ethnic communities that come together with different interests, competencies, skills and talents which in return enhance productivity and success in teamwork (Ely & Thomas, 2001).
By viewing the employees as unique people, who contribute varying cultural experiences that are important for learning and being indispensable for the success of the organization, the challenge of stereotypeso prejuices can be overcome. (Rijamampianina & Carmichael, 2005).
Diversity Management and the Key HRM Issues for Banks
Diversity management is a strategy applied by Human Resource Managers of buiness organizations in addressing and supporting diverse lifetyles and personal attributes exhibited by a particular group of people. These managers therefore have the duty of educating this defined group and offering them the support that they require so as to accept and respect cultural, economical, societal, political and geographical diversity. In every country, the bank managers should ensure that their workforce is made up of people from various ethnic groups in order for the business to earn the benefits that it brings (Crisp, 2010).
There is a lot to share in workforces that are are comprised of people from diverse backgrounds with regards to ideas and ways of handling operations. Human Resource Management based on diversity aims at understanding, valuing and managing both the disparities and similarities exhibited by this group, in order to gain augmented communications and enhanced productivity in the business. This is critical in places of work where interaction is a relevant element, like in banks. Diversity brings together various talents that can generate useful ideas and opinions, resulting into the longterm success of the company (Crisp, 2010).
The idea of integrating ethnic diversity in New Zealand’s banking industry can positively impact the business sector. This is beecause the banks mainly focusses on interactions of people in oredr to be successful in the moneey market. Those that have invested on ethnically diverse workforce have benefited in terms of brands and customers. According to customs, the idea of racial equality was considered an issue of human resource but the current cultural diversity has convinced many bank managers and in other sec tors to realize more that racial equality can have positive impacts on the business. Integrating a diverse laborforce in the banking sector that helps the business in enhancing performance in key targets like increasing its growth, providing a greater market share and also improving its competitive ability.
Diversity Workforce Viewpoints
Jackson (1998) argues that the efforts made by Human Resource Managers in addressing the issue on a diverse workforce has often been developed in part out of concerns about how some ethnic groups are treated as well as women in the job market.
Therefore, today people try to associate the current attempts by managers to have a diverse ethnic group in their workforce as required by the need for creation of diversity in organizations and their operations. He is of the idea that many managers are implementing ambitious programs aimed at educating and training the workforce to embrace the concept of diversity and create a team that can effectively work towards the outlined objectives. Yakura (1996) also affirms this by stating that the strategies applied by the Human Resource Managers in the introduction of ethnic diversity in business organizations entail selecting and hiring the ethnic group, and the development and sustainability of the workforce for increased productivity in the company. The livelihood and backbone of any organization is the people (Rennie, 2003). Thus, ethnic groups in a country are critical in ensuring every orgnization exhibits a balanced laborforce. A company’s workforce represents a major resource of great value for the organization and that is the reason for the importance of New Zealand banks to adopt the ideaa of having a workforce that shows the ethnic communities in a country. Consequently, the level of management directed towards a workforce has significant effects on the results of the business with regards to effectiveness and competitiveneess. According to Patrick and Boswell, (2002), Human resource plays an important role in the support of employee behavior that is focussed on the accomplishment of the keey objectives of the company. New Zealand banks should be committed to equipping the human resource managers with distinct skills that are required in supporting the objectives, challenges and the need to bring up and retain a workforce with diverse ethnic groups. This can be effective in meeting the needs and responsibilities bestowed upon managers. Besides, it can also help in improving the managers’ performance in banks. Based on the complexity in the operations of banks, New Zealand as well as other countries has experienced several challenges and opportunities of adopting the idea of a diverse workforce.
Why the Bank should be concerned about a Diverse Workforce
Banks need to focus on having a diverse laborforce since it helps in avoiding incidences of discrimination in the company as well as improving inclusiveness. It has been proven that having a diverse workforce can go a long way in contributing towards retention of the employees and also improving the productivity of the banks. Besides, the diverse workforce can assist the banks in having an enhanced responsiveness towards the increasingly diverse modern world of customers. It is critical for New Zealand banks to focus on a diverse workforce so as to avoid low wage and minimal growth economy in the the times ahead.
Wise investments like diversity in the wokforce can enable the business to create high wages from the wealth that is generated. The saving of the people of New Zealand was still not as much as it was believed. More people would be encouraged to save more if tax incentives were introduced. Due to the challenges that are faced in New Zealand as a result of the immigrant and refugee job seekers, it would be ideal if the bankibng sector in the country was more concerned with a diverse workforce. These immigrants and refugees also contribute to the econopmy of the country and should be incorporated in securing positions in decent jobs (Ulrich & Brocbank, 2005).
With a diverse workforce, the banks are able to serve their customers well in an environment where there is ethnic equality, where everyone feels represented. This significantly enhancess the realtionships with the business community while also helping the banks in increasing their ability in coping with challenges tht arise from the diverse cultures. A diverse laborforce can assist the banks in expanding the creativity of their operation from the varied ideas from the employees. This can impact innovations that contributeto the achievement of the buisness’ objectives. Consequently, a diverse workforce in the banks can enhance the accessibility of services by community as a result of the improved relations. Thus, it is important for New Zealand banks and other businesses across the globe to emphasize on diversity because it eventually helps the business in maneuvering the increasingly complex and diverse industry (Crisp, 2010).
The Role of Diversity in Improving the Bank’s Performance
The bank is able to enhance its performnce if it considers integrating a diverse workforce in its structures because these people can contribute neew ideas that result into the success of the business. Besides, a diverse laborforce also enables the business community to have confidence in the bank since they feel that everyone is represented therein. This will encourage invetments to the bank, thereby impacting profits. The diverse community of bank employees also contributes to the promotion of the business’ services outside the office, encouraging more customes to the bank.
When the banking sector encouragesd diversity, it will be able to ensure cooperation and more creative strategies for running the business. This results into effective operations in the business environment. However, Human Resource Managers show exhibit and encourage respect for all the contributions made by employees with regards to the abilities and other perspectives aimed at benefiting the sector at large. The belief in equality and entitlement of all to similar privileges, despite their ethnical backgrounds has impacted great chnages in the way Human Resource Managers conduct their operations. A diverse workforce has been proven to win business recognition among other businesses and it is a key element of obtaining a competitive advantage at the present and in future. This establishes a conducive environment in the banking industry and motivates the workers who are respected and appreciated for their diverse contributions towards the growth of the economy of the industry. The concept of diversity is effective in facing the rapidly changing cultural and sociological environment.
Conclusion of the Key Arguments of a Diverse Workforce
Having a diverse laborforce is important in the banking industry just like other sectors because it shows the representation of the surrounding community. This impacts confidence not only in the business but the entire society. Besides, it also contributes to the increased performance of the business. The diverse community in the workforce helps in bringing in new ideas in the business, assisting the managers to apply the most effective concepts to enhance the general productivity of the business. It is of great importance that New Zealand banks think about a diverse workforce in order to encourage many people to invest, thereby contributing to wealth and increased wages.
Strategic Human Resource Management has sometimes been faced with challenges when it comes to managing diversity in the place of work because of responding to the shifting workforce demographics in the country with different diversity programs. The workforce of New Zealand is under constant and rapid change, thereby making it challenging for human resource to manage diversity in the banks. Only those businesses that manage diversity effectively will have an upper hand in the future’s highly competitive market. The reason for this is because more minority groups and women are now making the bold move of joining the workforce and the population is also progressively aging.
According to customs, diversity expects people to adapt their cultural differences so as to fit into the dominant culture in the business. However, the current global trends have changed and the concept of diversity is also under constant changes. It is up to the businesses especially the banking sector to consider diversity as an asset that benefits the organization by contributing viewpoints and problem-solving skills to the business. Therefore, it is important that New Zealand banks adopt the culture of incorporating a diverse workforce in order to benefit from their strengths and innovations. However, it is the duty of the business to make sure that Human Resource Managers have the ability of handling the challenges of aa diverse workforce. These challenges include language barriers, shifting performance, handling the natural ethnic groups in the company as well as creating awareness in the organization (Jackson, 1992).
- Despite the importance of all dimensions of diversity, the strategy used by the banks must particularly emphasize on balanced representation of men and women of diverse nationalities in the workforce. For example, leadership that embraces women frrom different ethnic backgrounds with regards to their capabilities and capacities. The management of the bank should create a platform where ethnic women leaders can have fruitful and harmonious debates about the challenges and opportunities that they are faced with. This should also encourage networking and peer support among women ethnic leaders (Groschl & Takagi, 2012).
- Leaders with well balanced and well-rounded capabilities are recommended to be hired and trained or developed to come up with decisions that reflect the diverse cultural values of the people of New Zealand who have stakes in the banking industry. This means that the leaders will be able to challenge conventioanal thinking, acquire diverse viewpoints and implement an international mindset in their daily operations. The management of the bank is responsible for seeking such personnel and developing them through capacity building programs for the sustainability of their operaations.
- The banking industry must be committed to recruiting, retining and engaging talent of highly qualified workforce. They should be able to attract skilled professionals despite their personal attributes that are irrelevant to their professional capacities. The Human Resource Managers are required to come up with the processes of identifying and rewarding talents. The workforce data about qualifications, experience, performance and career ambition obtained from resumes and disccussions between staff and management must be applied in this. This is also important for setting objectives and formulation of policies by the senior management (ulrich & Brocbank, 2005).
- The banks should work towards building a more ethnically diverse leadership team that fosters international experiences amongst the senior staff. This will help the leaders in comprehending the nature of local markets with regards to the needs of the clientele and society at large. It will also attract and nurture local talent who could be ideal in managing the banking sector in future. Diversity also improves ethnic awareness and builds relationships between employees and customers through mentorship programs, cultural events and networking, healthy and long-term relationships. The Human Resource Managers should help in creating staff awareness about ethnic diversity.
- The banking industry in New Zealand should provide new employment opportunities that are aimed at enhancing social and economic inclusion among the diverse ethnic groups in the country. The banking sector must open up equal opportunities for immigrants who are likely to contribute talents and skills that could drive growth in the sector (Jones et al, 2000). The industry needs to conduct research in order to acquire a benchmark performance and project strategies to ehancee the services offered to clients. This research will also entail the survey of ethnical backgrounds of the senior industry leaders. As a result, fairness in performance appraisal and efficiency of human resource managers will be promoted.
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