Discuss the impact of diversity on leadership in a workplace, with particular reference to gender diversity.

 

Title: The impact of diversity on leadership in a workplace, with particular reference to gender diversity

 

Number of words (excluding references) 2032 words

 

 

CONTENT

                                                                                                                                          Page

  1. Introduction 2
  2. Leadership and diversity 2
  3. Diversity in practice             5
  4. Leadership and diversity workplace             6
  5. Leadership and gender diversity in workplace 7
  6. Conclusion 7

References                                                                                                                  9

 

 

 

  1. Introduction

Leadership means different thing, depending from perspective from which the subject is being considered. For instance, leadership may be considered from perspective of influence, change, service, character, and development. Diversity is a multidimensional concept which involves collaboration between individuals and groups from diverse culture, ethnic and nationality to achieve a common goal. The study examined impact of diversity on leadership in a workplace. It is necessary to highlight the interpretation or meaning of leadership and diversity in the context of the study. For the purpose of the study, leadership is considered from perspectives of influence (Bolden, 2004; French, 2010; Browaeys and Price, 2011; Fullan, 2014). Diversity in a workplace entails range of practices that promote mutual respect and healthy alliance among organisational workforce from diverse culture, ethnic and nationality (Wambui et al., 2013; Bedi et al., 2014). The study considered diversity and leadership in multinational companies (MNCs) or transnational corporations (TNCs). MNCs are firms that operate or have business in more than one country. The study is consist of six parts. The study was introduced in the first part. The second part examined leadership and diversity. The third part examined diversity in practice. The fourth part considered leadership and diversity workplace. The fifth part explored leadership and gender diversity in workplace; and the last part highlighted summary and conclusion of the study.

 

  1. Leadership and Diversity

The study examined impact of diversity on leadership in a workplace, with reference to gender leadership diversity. For the purpose of the study, leadership is considered as the ability to influence people through personal traits, behaviours and drive to achieve a organisational objectives (Bolden, 2004; French, 2010; Browaeys & Price, 2011; Fullan, 2014). In essence, leadership is viewed as the ability of a firm’s management to inspire and motivate the workforce to achieve organisational goals (Chuang, 2013; Bukhari and Sharma, 2014; Singh, 2015). An effective leader can be describe as an individual who engage, inspire, motivate and build a team to achieve a common goal. An effective leader should possess good leadership skills. Leadership skills include planning, integrity, competence, honest, shared vision, forward looking, dedication, effective communication, teamwork, empower and inspire people (Bolde, 2004; Schyns and Schilling, 2011; Chuang, 2013; Landis et al., 2014). The study focused on diversity and leadership in multinational companies (MNCs). Leadership in a workplace or MNC should source for and integrate required skills through diverse workforce to achieve the organisation’s goals. This is necessary because MNCs are firms that operate or have business in more than one country. Consequently, diversified workforce is essential in MNCs.

 

Diversity is a broad that emphasises recognition and appreciation of individual difference within a group or workplace. It means appreciating differences between people and various ways they can impact and induce productivity and creativity workforce and working environment (Kirton & Greene, 2010; Mazur, 2010; Healy et al., 2011). In essence, diversity is about respecting and appreciating individuals differences and peculiarities (Herring, 2009; Kirton and Greene, 2010; Healy et al., 2011). In MNCs diversity or diversified workforce is necessary for achievement of organisational goals. MNCs are international organisations that owned and/or manage businesses in different countries across the world (Jones and George; 2013; Hill et al., 2014; Pride et al., 2014). Moreover, diversified workforce is essential in MNCs because such organisations operate in complex and dynamic environment (Hamilton and Webster, 2012; Daniel et al., 2014; Griffin et al., 2014). Diversity is practically inevitable in MNCs (French, 2010; Browaeys and Price, 2011). It is diversified workforce is beneficial as it facilitates integration of wider dimensions of diversity, as illustrated in Figure 1. Primary dimensions of diversity refers to individual inborn differences which include age, ethnicity, gender, race and sexual orientation (Herring, 2009; Kirton and Greene, 2010; Healy et al., 2011). Secondary dimensions of diversity refers to skills acquired through learning or as part of an organisation, which include: religion, education, family status, geographical location, work experience, work style and communication style (Muzar, 2010).

 

 

 

 

Figure 1: Dimensions of diversity – Adapted from ESL Multicultural (2015)

 

Considering the benefits of diversity, it has been embraced by countries across the world as local and international anti-discrimination laws have been enacted across the world. The United Kingdom (UK) Equality Act 2010 is an example of anti-discrimination Act that seeks to promote diversity in workplace and protect people from discrimination (UK Equality Act, 2010). Diversity can be influenced by several factors. These factors may be described as drivers of diversity. Drivers of diversity include: religion, gender, age, sexual orientation and disability (Bedi et al., 2014; Ozbilgin et al., 2015). Pitts et al. (2010:882), in their study on drivers of implementation of diversity management program, identified three drivers of diversity management system which include “environmental uncertainty, environmental favorability and institutional isomorphism”. These drivers of implementation of diversity management program formulated by Pitts et al. (2010) are highly relevant in MNCs, which is the focus of the study. This is because MNCs operate in international environments and markets which are complex and dynamic in nature (Hamilton and Webster, 2012; Jones and George; 2013; Daniel et al., 2014; Griffin et al., 2014; Hill et al., 2014; Pride et al., 2014).

 

There are several benefits and challenges of Workplace diversity. Benefits of workplace diversity include: promotes increased adaptability, enables broader range of services; facilitates attraction of experienced and capable manpower; ensures wider viewpoints and solutions; induces effective execution of tasks or projects; increased productivity; and promotes innovation and creativity (French, 2010; Chuang, 2013; Bukhari and Sharma, 2014). On the other hand, challenges of diverse workplaces include: communication challenge due to diverse culture and language of workforce; resistance to change; challenges regarding development of diversity in workplace plans; challenges of implementing workplace diversity policies; challenges regarding successful management of diversity in the workplace; and challenge of diversity in leadership positions (Dickson et al., 2012; Fullan, 2014; Jacobs, 2014).

 

  1. Diversity in Practice

There are variety of diversity dimensions which can be classified into two: primary dimensions and secondary dimensions, as illustrated in Figure 1. The study focused on gender which is one of the primary dimensions of diversity. Examination of leadership based on gender in a diversified workplace is cross-cultural in nature. Since the study focused on leadership based on gender in a diversified workplace; it is useful to consider a cross-cultural leadership theory. Hofstede’s (1991, 2011) cross-cultural leadership theory in relevant in this regard. Hofstede’s first cross-cultural leadership model theory highlighted five (5) cultural dimensions. Hofstede (1991, 2011) added the sixth cultural dimension to its cross-cultural leadership model theory based on Minkov (2007, 2013) data from World Values Survey. The six dimensions of Hofstede’s (2011:8) cross-cultural leadership theory is highlighted below:

 

“1. Power Distance, related to the different solutions to the basic problem of human inequality;

  1. Uncertainty Avoidance, related to the level of stress in a society in the face of an unknown future;
  2. Individualism versus Collectivism, related to the integration of individuals into primary groups;
  3. Masculinity versus Femininity, related to the division of emotional roles between women and men;
  4. Long Term versus Short Term Orientation, related to the choice of focus for people’s efforts: the future or the present and past.
  5. Indulgence versus Restraint, related to the gratification versus control of basic human desires related to enjoying life Hofstede’s”.

 

  1. Leadership and Diversity Workplace

Leadership is a huge area and there are several types of leadership styles. Goleman (2000) identified six leadership styles, namely: commanding, visionary, affiliative, democratic, pacesetting and coaching styles. Globally, there are several types of leadership styles which include autocratic, bureaucratic, laissez-faire, democratic, transformational, transactional, and multicultural or cross-cultural leadership stylse (Goleman, 2000; Javidan et al., 2006; Schyns and Schilling, 2011; Dickson et al., 2012; Hankinson, 2012; Chuang, 2013; Landis et al., 2014; Singh, 2015). We are of the opinion that multi-cultural of cross-cultural leadership style is more relevant in a diversified workplace. This is in line with the Global Leadership and Organizational Behaviour Effectiveness (GLOBE). GLOBE is a global cross cultural multi-phase inquiry that focuses on correlations between societal culture, organizational culture, and organizational leadership (Grove, 2005; Javidan and Dastmalchian, 2009). The GLOBE project has nine main cultural competencies or dimensions, which include: power distance; uncertainly avoidance; collectivism I; collectivism II; gender egalitarianism; assertiveness; future orientation; performance orientation; humane orientation   (McSweeney, 2002). It is, therefore, important to describe multi-cultural or cross-cultural leadership style. This is consider in the next paragraph.

 

Multi-cultural or cross-cultural leadership style is well suited leadership style for diverse workplaces. What is a cross-cultural leadership style? Cross-cultural leadership is a leadership style that foster team and individual effectiveness across different cultures (Johnson et al., 2006; Dickson et al., 2012; Minkov, 2013). Cross-cultural leadership promotes atmosphere of understanding and mutual respect. Moreover, cross-cultural leadership can propel innovation by leveraging multicultural differences in diversity workplace. Furthermore, cross cultural leaders have the capacity to quickly adopt to different environments and work with others from different cultural backgrounds (Gelfand et al., 2007; Pellegrini  et al., 2010). Consequently, cross cultural leaders are essential in the global market and MNCs, characterised with diverse workforce. In essence, cross-cultural leadership style is well suited leadership style for diverse workplaces because: first, effective workplace diverse management is a prerequisite for business success in the global market (Okoro, 2012); second, globalisation necessitate cross-cultural or multi-cultural leaders – global leadership (Lovvorn and Chen, 2011); third, global leaders should embrace diversity (Chuang, 2013); and lastly, cross-cultured leaders must manage cultural diverse setting effectively (Rockstuhl et al., 2011).

 

  1. Leadership and gender diversity in workplace

It has been stated earlier (see 3 above) that the study focused on gender in a diversity workplace. We have also discussed a relevant cross-cultural leadership theory – Hofstede’s (1991, 2011) cross-cultural leadership theory (see section 3 above). The integrity and characteristics of organisation top level leadership or leaders may influence the public‘s perception about the firm (Waldman and Yammarino, 1999; Goodall et al., 2010; Zhang and Rajagopalan, 2010). Studies also shown that gender influences leadership in diversity workplace. McKinsey (2007) study on women matter and gender diversity found that companies with the highest gender diversity teams grow faster. Similarly, Patel (2013) study, on gender differences in leadership style and the impact within corporate boards, found that gender influences decision making on leadership position.

 

A recent study has also established that only 4.2 per cent of women held chief executive positions at fortune 500 companies; and almost one third of businesses have no women in their senior leadership teams (Waber, 2014). Mccullough (2015) study also showed that only 6.6% of are female out of 152 head of states around the world between 2005 and 2015. Furthermore, De Mascia (2015) survey indicated that companies with female leaders are performing better financially. De Mascia (2015) study also suggested that female leaders in diversity workplace are: more patient; less self-centred; have more team management style; better team players; better in engaging people and motivating them; more trustworthy; and good emotionally intelligent leaders or leadership. The foregoing suggested that diversity, particularly gender, impact on leadership in a workplace.

 

  1. Conclusion

Leadership means different thing, depending from perspective from which the subject is being considered. Diversity is a multidimensional concept which involves collaboration between individuals and groups from diverse culture, ethnic and nationality to achieve a common goal. The study examined impact of diversity on leadership in a workplace, with reference to gender leadership diversity in MNCs. The study examined leadership and diversity; discussed diversity in practice; considered leadership and diversity workplace; and explored leadership and gender diversity in workplace. The study viewed leadership as the ability of a firm’s management to inspire and motivate the workforce to achieve organisational goals. It also highlighted that diversity emphasises recognition and appreciation of individual difference within a group or workplace. It argued that diversity can impact, contribute and induce productivity and creativity workforce and working environment. There are several types of leadership styles which include autocratic, bureaucratic leadership style; laissez-faire leadership style; democratic leadership style; transformational leadership style; transactional leadership style; and multicultural or cross-cultural leadership style. Based on the literature, the study argued that cross-cultural leadership style is well suited for diversity workplace. Finally, the study concluded that diversity, particularly gender, impact on leadership in a workplace.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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