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Managing People in International Managing People in International Hospitality and Tourism IndustriesHospitality and Tourism Industries

Managing diverse workforces : the moral ethical and business cases for

individual employee rights.

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Learning OutcomesLearning OutcomesExamine the nature of diversity in the

Hospitality and Tourism workforce and the potential problems posed by prejudice, stereotyping and unfair discrimination.

Understand the evolution and context of equal opportunity and diversity management concepts.

Analyse the moral / ethical, legal and business cases for managing individual employee rights and diversity effectively

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The Debate QuestionThe Debate Question

‘The only stakeholders that matter to a business are the stockholders and anything else is based on political correctness and is unnecessary.’

This involves the argument between a free-market Friedmanite economic model for business and the more contemporary stakeholder view and the three cases for individual rights for workers

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Kluckhohn & Murray (1953)Kluckhohn & Murray (1953)

In their book ‘Personality in nature, society, and culture’ say that in some respects :

Every human being is like EVERY other human being

Every human being is like SOME human beings

Every human being is like NO OTHER human being

How can all these be true ?

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Types of DiversityTypes of Diversity

People are different from each other in many ways:

Age

Gender

Educational experience

Ethnic origin – racial, religion or linguistic

Disability – mental capacity or physical ability

Sexual Orientation

Background / social class

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The UK Hospitality Industry The UK Hospitality Industry WorkforceWorkforce

GENDER

Women dominate numerically 67%

Women over-represented in housekeeping

and cleaning jobs

More women in supervisory / management

jobs compared to other industries

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The UK Hospitality Industry WorkforceThe UK Hospitality Industry Workforce

ETHNIC ORIGIN

Ethnic minorities over-represented• 4.9% of all UK workers non-white• 10.8% of hospitality employees

AGE

Young workers dominate compared to other UK industries

40% under 25yrs old

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Wider picture Wider picture

Diverse HTI workforces in many countries

e.g. ‘ In 1996, the percentage of foreign workers in hotels and restaurants was 51.2 per cent in Switzerland and 30.9 per cent in Germany. In Spain, the coastal resorts employ a large number of illegal immigrants.’

ILO, 2001 p.78

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Problems: Stereotyping,Prejudice & Problems: Stereotyping,Prejudice & DiscriminationDiscrimination

‘A stereotype is a category, or personality type, to which we consign people on the basis of their membership of some known group.’ (Huczynski & Buchanan 2001: p224)

Stereotyping May lead to :Prejudice and …..

Unfair and / or Unlawful Discrimination

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Prejudice Prejudice

Basic elements of prejudice are:A feeling of superiority

Perception of others being different or alien

A feeling of priority claims to certain privileges

and advantages

A fear and suspicion of others

Much more likely in a diverse workforce ?

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An outward display of prejudice involving :

Treating someone less favourably’ (Hollinshead et al, 1999) e.g on grounds of sex, race, disability, sexual orientation, age etc.’

Preferential treatment on similar grounds

N.B. Prejudice doesn’t necessarily result in discrimination but makes it more likely

Legislation can make some discrimination illegal BUT it cannot remove prejudice

Discrimination Discrimination

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OutcomesOutcomes

Perceptions of fairness enhance morale / employee commitment (e.g. Lemons & Jones 2000)

Links between higher morale and greater productivity

Prejudice & discrimination may lead to higher staff turnover – ‘vicious circle’ in HRM

Failing to adhere to legislation may cost the company financially and in terms of reputation

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Reasons for Customer & Worker DiversityReasons for Customer & Worker Diversity

Changing demographic profiles Immigration

Multinational companies - move people about

Mobility of labour - within EU / free trade areas

Changing social conventions - role of women, age of entering higher education

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Three Interrealated ‘CASES’Three Interrealated ‘CASES’1. Moral / Ethical Case

Universal Declaration – Article 23

Legal frameworks evolved from this

2. Legal Case Anti discrimination legislation but ! gaps (age, looks etc)

Linked to moral / ethical and business cases

3. Business Case Linked to legal and moral / ethical cases Basis of Diversity management approach

• Morale and Motivation levels of unfairly treated workers – impacts on customer satisfaction (Bowen et al 1997)

• Stakeholder theory / benefits to organisations and wider society of stakeholder approach

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UUniversal Declaration of Human niversal Declaration of Human RightsRights

http://www.hrweb.org/legal/udhr.html

Article 23. Everyone :

Has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment,

without any discrimination, has the right to equal pay for equal work

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UUniversal Declaration of Human niversal Declaration of Human RightsRights

Everyone : Who works has the right to just and favourable

remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary by other means of social protection

Has the right to form and join trade unions for the protection of his interests

Legislation to back this up

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Equal Opportunities (EO) ApproachEqual Opportunities (EO) Approach Based on legal framework from 1970’s onwards

Often seen as unnecessary regulations borne out of PC (political correctness) interference from government.

Aims to achieve a more even spread of jobs across different groups within community

EO initiatives may aim to

• Eliminate unfair discrimination

• Introduce fair recruitment and selection practices

• Bring in procedures for dealing with alleged acts of discrimination

• Provide training and development for groups typically disadvantaged.

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Criticisms of EO ApproachCriticisms of EO Approach

Disturbs the vested interests too rarely

Does not tackle the normal everyday working patterns which are often indirect / covert forms of discrimination,

Emphasizes the moral and ethical case for fairness and equity through legislation rather than the benefits of eradicating discrimination and disadvantage.

Reactive rather than proactive

Defensive rather than positive

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'So long as equal opportunities was equated simply with legislation, then its always going to be about group parity, and getting the numbers 'right'. This was a recipe for inertia over the last fifteen years, this is pretty much what we experienced.'

Ross & Schneider, 1992 p.36 in Cassell, 2001 page 406

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The Business Case - FairnessThe Business Case - Fairness

Bowen et al 1997 – ‘the case of Charlie the baggage handler’

‘Although the issue of fairness applies to most organisations,

service organisations must be particularly concerned because

of the impact on customers’. (page.7)

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Business Case – Diversity Management Business Case – Diversity Management (DM)(DM)

“Diversity (Management) requires an understanding that there are differences among employees and that these differences, if properly managed, are an asset to work being done more efficiently and effectively.”

(Bartz et al, 1990: 321) in Kandola and Fullerton,1998

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Diversity Management (DM)Diversity Management (DM)

Goes beyond just the moral and social arguments for tackling discrimination to focus upon the business reasons.

Recognises that people from different backgrounds and walks of life bring fresh ideas and perceptions which can result in better products/services and more efficient ways of working.

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Effective DM Effective DM

Harnessing differences to create environment in which:

Everybody feels valued

Everybody’s talents are being fully utilised

Organisational goals will be met

BUT how is this different from EO Approach?

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Business Benefits of Managing Business Benefits of Managing DiversityDiversity

Benefits of : Improved corporate

image with potential employees and customers

Attracting ethical investors

New business ideas from diverse workforce

(Avoids) costs of :More management

time spent on grievances

Losing an industrial tribunal case

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Business Benefits of Managing Business Benefits of Managing DiversityDiversity

Proven benefits

Organisational savings

Wider poolIncreased flexibility

Debatable benefits

Team effectivenessCustomer service

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MOSAIC framework - DMMOSAIC framework - DM

M

O

S

A

I

C

a strong company missionmission which makes diversity a long-term business objective

objective and fair processesobjective and fair processes for recruitment, training, appraisals etc

having a skilled workforceskilled workforce which is aware of the value of diversityactive flexibilityactive flexibility in the criteria of benefits offered

individual individual (as opposed to group) focus which means valuing all employees for their differences

an empowering cultureculture which is trusting, supports risk and where there is an absence of prejudice and discrimination

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EO/DM SummaryEO/DM Summary

EO Moral / ethical & legal

case For disadvantaged

groups Sets targets and uses

positive action Driven by legislation,

policy and procedures

DM Based on the

‘Business Case’ For ALL individuals

Seeks to improve opportunities for all

Driven by business need for culture change

See more in Torrington, Hall & Taylor, 2002 p.371

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Purpose Reduce discrimination Utilise employee potential to maximum advantage

Case argued Moral and ethical Business case-improve profitability

Whose responsibility

Personal department All managers

Focuses on Groups Individuals

Perspective Dealing with different needs of different groups

Integrated

Benefits for employees

Opportunities improved for disadvantaged groups, primarily through setting targets

Opportunities improved for all employees

Focus on management activity

Recruitment Managing

Remedies Changing systems and practices

Changing the culture

ASPECT EQUAL OPPORTUNITIES MANAGING DIVERSITY 

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What evidence of EO / DM in the What evidence of EO / DM in the Industry ?Industry ?

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Stakeholder TheoryStakeholder Theory

The traditional view of business / economicsMilton Friedman – (1970)

“the purpose of a company is to make profits for stockholders, which means that stockholders are the one and only stakeholder group that managers should take into account when making decisions”

The Contemporary Stakeholder Perspective

 Many changes in the external environment of business

changes in way managers perceive organisations /jobs

stakeholder concept has been increasingly studied

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Stakeholder Theory ( Corporate Ethics)Stakeholder Theory ( Corporate Ethics)

Freeman(1984) and Carroll (1989) indicate : organisations benefit from understanding the

needs and concerns of a broad set of stakeholders.

concept first appeared in 1963 in an internal memo at the Stanford Research Institute (SRI).

originally defined as those groups without whose support an organisation would cease to exist.

share owners employees,customers suppliers

lenders society

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Stakeholder TheoryStakeholder TheorySRI researchers argued that :

‘unless executives understood the needs and concerns of these stakeholder groups, they could not formulate corporate objectives which would receive the necessary support for the continued survival of the firm’.

Freeman (1984) argues that a manager's task is to :

‘protect and promote the rights of the various stakeholders of the company’

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Models of managing diversityModels of managing diversity

Organisational visionTop management commitmentAuditing and assessment of needsClarity of objectivesClear accountabilityEffective communicationCo-ordination of activityEvaluation

Kandola & Fullerton (1994)

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Models of managing diversityModels of managing diversity

Clarify your motivationClarify your visionExpand your focusAudit your corporate cultureModify your assumptions and business modelHelp your people pioneerApply special consideration testContinue affirmative action

Thomas (1990)

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Models of managing diversityModels of managing diversity

Matching people and jobsMatching and rewarding

performanceInforming and involving peopleSupporting lifestyles and life needs

Jamieson and O’Mara (1991)

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Models of managing diversityModels of managing diversity

You are expected to study:McEnure (1993)Cox & Blake (1991)Motwani et al (1994)Ross & Schneider (1992)Harrington (1993)Bartz et al (1990)

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Useful sourcesUseful sources

Creating a Work-Life Balance: A Good Practice Guide for the Hospitality Industry, (2001)

(Department of Trade and Industry

Roy C. Wood (2003) Diversity Management Chapter 4 in ‘Brotherton (2003)

Other sources – links from Web CT

HCIMA Management Briefs 1-8 : Diversity Management

‘www.dti.gov.uk/work-lifebalance/www.dti.gov.uk/work-lifebalance/pdfs/pdf_wlb1_4_03.pdf

Lecture 6 Week 7 additional references and WebLinks (see handouts section)