Managing Diversity

Challenges for Indian Inc.

Presented By Ramesh Babu Sinoy Cherian Vivek Agarwal

Table of Contents
Introduction ....................................................................................................................... 3 Idea in Brief ....................................................................................................................... 4 Objectives ..................................................................................................................... 4 Rationale ....................................................................................................................... 5 Necessity of diversity management in India .................................................................. 5 Methodology Adopted for Analysis.................................................................................... 6 Methodology adopted for analysis .................................................................................... 7 Survey Analysis & Strategy Formulation ........................................................................... 9 Workforce Demographics............................................................................................ 10 Leadership Development ............................................................................................ 13 Managing Diverse Workplace Culture/Climate ........................................................... 17 Developing Learning and Growth Strategies .............................................................. 20 Handling Diverse Customer/Community ..................................................................... 21 Market Place ............................................................................................................... 21 Strategic Initiatives ...................................................................................................... 22 Consolidation of the Strategies ................................................................................... 24 Diversity Management ................................................................................................. 26 In Practice ....................................................................................................................... 26 Diversity management success through Indian Inc, .................................................... 27 Asian Paints ................................................................................................................ 27 Growth Strategies of Asian Paints Based on Diversity management in India ............. 28 b) Economic Diversity of People in India ..................................................................... 28 Diversity Management in Asian Paints International Business ................................... 29 Diversity Management ................................................................................................. 30 Conclusion ...................................................................................................................... 30 Conclusion .................................................................................................................. 31 Bibliography ................................................................................................................ 31 ANNEXURE I .................................................................................................................. 32

Introduction

Need of Diversity Management Introduction

Idea in Brief
In todays global marketplace, cultural diversity becomes a valuable asset. Until recently many companies were not very much concerned about this point. Today it is realized that a more diverse work force, will increase the organizational effectiveness. It became clear that workforce diversity is the bridge, in other words greater diversity in workplace could help organization to attract a more diverse customer set. It will lift morale, bring greater access to new segments of the marketplace and enhance productivity. Diversity is being considered as one of the key points in todays business vision statements and not just a philanthropically aspect.

Objectives
The report presents the finding of the analysis and survey executed on the Managing Diversity The Challenges for India Inc as the topic. The key objectives of the research were to Evaluate the necessity of proper diversity management specifically for Indian Organizations & market. Analyze the present scenario by conducting surveys. Evaluate the challenges and barriers for the proper diversity management based on the outcome of the survey. Suggesting innovative solutions to overcome the challenges identified.

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Need of Diversity Management Introduction

Rationale
Diversity and inclusion (D&I) are important topics for the 21st century, but what do they mean why should you care? Todays workplace is extremely diverse and becoming more so. Its really about strategic people management of all employees. D&I are also about leveraging workforce diversity to capture external market opportunities. Consumer markets are segmented very finely by marketers; the more a firm can mirror its consumer markets the more likely it is to be able to sense and respond to consumer needs a big potential competitive advantage. Plus, D&I mean benefiting from broad access to the best value, highest quality and most competitive goods and services through supplier diversity.

In sum, diversity and inclusion are absolutely central to effectiveness. The talent that a organization is able to attract , retain and support; the strength of employees commitment; the strength of the organizations position in the market place; indeed the organizations overall effectiveness, are all greatly influenced by how diversity is managed and underpin an organizations ability to deliver results.

Necessity of diversity management in India

India is known as politically one country but socio-culturally many countries in one. In India even people from neighboring states are as different as trying to compare Karnataka to Italy when considering language, style of dress, cultural dances, etc. As per studies in India the language and culture changes ever 100 kilometers. From a media planning perspective, there are 5,600 daily newspapers, 15,000 weekly newspapers, and 20,000 magazines in 21 languages across the country that planners must negotiate through when planning their media buys. To keep in pace with the changing needs of the world and to succeed India Inc's should keep in mind not only the demographics at their organization level, the challenge is also to have a broad spectrum of thought to manage at the market place. It is like a two edged sword. An optimal environment should be that which seeks to optimize the contributions of diverse workforce, suppliers and the communities where they work. It should reflect both the market place and the customers.

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Methodology Adopted for Analysis

Diversity Management Methodology Adopted for Analysis

Methodology adopted for analysis

As described above the diversity in the present Indian scenario (which is same in the global aspects also) has been divided as two major categories: 1. Diversity in Organization 2. Diversity in Market Place

Figure 1
The phase manner methodology was followed as described below:Phase 1 Business Case Description In this phase the problem areas were identified and an initial survey was conducted for coming up with the factors on which the diversity management is based. These factors were considered as the challenges being faced in the corporations to developing strategic initiatives. Phase 2 Assessment Development and Implementation Based on the above factors a questionnaire was developed. Following were conducting the survey. the intention of

Understanding the feeling of the people in different organization in India Understanding key factors that people give more importance Understanding the way how companies have implemented the strategy or taking care of the diversity internally Understanding the factors, which are to be improved/implemented in Indian organizations and the challenges on the way?

The survey was conducted in the following major organizations in India that are focusing on different domains like IT, Production and FMCG as listed below. The sample count of 100 was taken for the analysis. 1. 2. 3. 4. Intel Infosys Wipro SAP

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Diversity Management Methodology Adopted for Analysis 5. 6. 7. 8. 9. Manhattan Associates IBM Larsen & Toubro Coca Cola India Maruti Suzuki

Phase 3 Scorecard Measurement Evaluation and Functionality After conducting analysis based on survey data using SPSS software a balanced scorecard was developed which shall link the key strategies with the company growth and development. The key components of the scorecard include Objectives which list out the various objectives for a particular parameter? Measures List out the measures for the various Objectives to evaluate the performance Initiatives Lists out the various initiatives that need to be adopted to accomplish the object. Targets Are the company specific values which need to be achieved.

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Survey Analysis & Strategy Formulation

Diversity Management Survey Analysis and Strategic Initiatives This section talks about the survey data analysis and the key finding. From the survey the following points were identified as key factors for analysis: Organizations Perspective Workforce Demographics Leadership Development Managing Diverse Workplace Culture/Climate Developing Learning and Growth Strategies Handling Diverse Customer/Community

Market Place Perspective Geographical Diversity Socio Economic Diversity

The approach followed in each section involves listing out the key finding based on the survey and trying to develop the components on the scorecard for that head to map it to the company performance.

Workforce Demographics
A high performance organization relies on a dynamic workforce with the requisite talents, multidisciplinary knowledge, and cutting edge skills to ensure that it is equipped to accomplish its mission and achieve its goals. All employees have a role in making that happen.

Key Findings
1) Diversity in Recruitment Pattern

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Diversity Management Survey Analysis and Strategic Initiatives

Feedback on Diversity in Recruitment

60

Frequency

40

20

0 Yes No

65% say yes for diversity in recruitment. This indicates that more measures should be put in place to take up recruitment initiatives.

2) Gender and Ethnicity Mix

Importance of equal mix of different ethnic groups

Frequency
60 40 20 0 No Response Agree Disagree

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Diversity Management Survey Analysis and Strategic Initiatives

Equal ratio between women and men

100 80 60 40 20 0 No Yes

70 % people say that there is an equal mix of different ethnic groups 85% of the people think the ratio of men and women in the organization is proportionate In Global office ratio of gender and ethnicity is 90% say yes Looking at the analysis it is observed that the Top 10% of the company executives are not from the diverse cultures/backgrounds. Thus measure to promote leadership from various backgrounds is to be taken up.

Scorecard Formulation
Objectives
Have a specific recruitment strategy which takes care of diversity parameters Equal Employee opportunities Diversity at senior ranks

Measure
Diversity in recruitment Equal mix of different ethnic groups Ratio of men and women in the organization Diversity Mix of the top 10% of the company executives.

Initiatives
The Value of Mentoring Without regard to race, gender, religion, national origin Inconvenience yourself to show someone else the way Unleash someone elses potential

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Frequency

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Diversity Management Survey Analysis and Strategic Initiatives

Recruitment Alternatives Entry level Upward Mobility Positions Bridge Positions Special Appointing Authorities Schedule A for severe disabilities Veterans Readjustment Appointment Outstanding Scholar Professional Development Identify training and development needs for all employees Utilize Individual Development Plans Rotational & Developmental Assignments Rotate acting supervisor

Leadership Development
The relevance of leadership comes from the question that Diversity Management- Whose Job is it? A proper leadership only can make the organization successful in diversity aspects.

Key Findings
1) Mentoring Program Analysis Reduces Diversity Gap Based on Age:
Inputs from employees in different age groups:

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Diversity Management Survey Analysis and Strategic Initiatives

Mentoring Program Importance

40

Age
30

Count

20 10 0 Yes No

1.00 2.00 3.00 4.00

Analysis shows that the respondents agree that mentoring programs help reduce diversity gaps Also the respondents in the age group of 25-34 and more involved and are aware of this aspect.

Based on Gender:
Inputs from male & female employees:

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Diversity Management Survey Analysis and Strategic Initiatives

Mentoring Program Importance with Gender

60 50

Gender
Male Female

Count

40 30 20 10 0 Yes No

51% of male employees feel that mentoring programs are required 37% of female employees think that the programs are required 12% of male employees feel that the mentoring programs shall not help much to handle the diversity aspects.

2) Leadership skills & experience to handle the diversity scenarios

Inputs from employees in different age groups:

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Diversity Management Survey Analysis and Strategic Initiatives

Bar Chart
40

Count

30 20 10 0 1.00 2.00

Age
1.00 2.00 3.00 4.00

EmpPromExp
Analysis from the above is that 80% of the respondents think that employees are promoted based in skills and not on ethnicity & experience in the field. People in the age group of 25-34 years are much more aware of such programs and appreciate them. This is also an indicator that the initiative should be promoted from the budding employees age group of 20-25 years also to ensure better results.

3) Nondiscrimination based on Gender

Inputs from male and female employees to analyze the significance of gender in leadership.

53% of male employees think that women get equal opportunities. 23% of female employees think that there is no discrimination based on diversity.

Scorecard Formulation
Objectives:
Adaptation (acknowledging cultural gaps openly and working around them) Understanding individuals in the team in diversity aspects and changing the shape of the team. Mentoring programs to bring up the people to the expected level Managerial intervention (setting norms early or bringing in a higher-level manager)

Measures:
Mentoring Program Analysis Reduces Diversity Gap Leadership skills & experience to handle the diversity scenarios Nondiscrimination based on Gender

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Diversity Management Survey Analysis and Strategic Initiatives

Initiatives:
Mentoring programs Trainings to make leaders aware of the significance of diversity management and various implementation strategies Feedbacks and measurements to improve the approach of the leader to handle diversity aspects.

Managing Diverse Workplace Culture/Climate

India probably has all the worlds religions. Many times it is noticed that the culture is very much related to the religious background of the people. People from different geographical area with different cultures, languages, and socio economical background shall be working in the same organization. These aspects are to be well analyzed and a suitable work culture should be created in the organization.

Key Findings
1) Ethnicity aspects in an organization

2% of people want to work with people of different ethnicity 4% people are open to be people of different ethnicity supervising them 94% believe that people of different ethnicity help get new ideas.

2) Equal Opportunity Employer

88% people think that the organization is an equal opportunity employer.

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Diversity Management Survey Analysis and Strategic Initiatives

3) Requirement Strategy & Culture

Recruitment is done based on requirement of experience and skills instead of ethnicity depicts that 99% of the people believe that recruitment should be based on skills and experiences.

4) Gender Mix in Work culture

90% respondents believe that women and men are provided with equal opportunity

5) Language barriers

74% people believe that language is not a barrier for growth in the organization.

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Diversity Management Survey Analysis and Strategic Initiatives

6) Employee Recognition programs

88% people believe that there is employee recognition programs are there and are successful in the organization.

Score Card Formulation

Objectives:
Implement EEO policy Performance measures based on diversity Working with people of

Measures:
Ethnicity aspects in an organization Equal opportunity employer Requirement strategy and culture Gender Mix Employee recognitions programs Language barriers

Initiatives:
Annual Get together Offshore programs

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Diversity Management Survey Analysis and Strategic Initiatives

Developing Learning and Growth Strategies

Key Findings
Efficiency of Training Program

64% people said that they were not involved in the training program in the company which looks to be a potential problem

88% Mentoring Program is important in reducing diversity

Scorecard Formulation
Objectives:
Developing a corporate training strategy Performance Analysis of Individuals on a corporate level.

Measures:
The feasibility of Training Programs Parameter on which performance evaluation is done.

Initiatives:
Leadership Programs Managing Trainee Mentor Program Mentoring for new Hires Job improvement Tec talk

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Diversity Management Survey Analysis and Strategic Initiatives

Handling Diverse Customer/Community

For any organization irrespective of the product based or service based, customer satisfaction is the utmost/primary aim. To achieve this goal corporate should have policies in place to implement and evaluate the strategies for handling customer diversity as a primary strategy.

Scorecard Formulation
Objectives:
Proper company vision and policy to handle customers Workforce to cater customer of diverse background Strategies for the proper market analysis Feedback from the market

Initiatives:
Establish the company policy for customer handling Train the people to cater customers of diverse background Analysis of the similar products and companies in the same domain and their growth. Implementation of a proper methodology to get feedback on the products or services provided.

Market Place
People perception is based on the surrounding environment. Since India being a diverse cultural playground product companies have to employee various strategies to handle it.

Key Finding
Indian Inc. needs to be able to tap the vast potential socio economic variation in the Indian society. Indian Inc. need to be build-up there strategies leveraging based on the concept of vast geographical diversity Indian Inc. needs to understand the importance of global presence to tap various economies.

Scorecard Formulation
Objectives:
Geographical Diversity Management Socio Economical Diversity Management Diversity leading to Profitability

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Diversity Management Survey Analysis and Strategic Initiatives

Initiatives:
Brand Promotion using regional Influence

Packaging in North India

Packaging for NRIs

Packaging in South India

Developing an international Expansion Strategy Provide opportunity for future business leaders to understand the changing dynamics of a flat world Cross Culture Adaptability

Strategic Initiatives
After following the methodology and analyzing the results a strategic plan was developed which can be implemented by companies trying to enhance and implement diversity initiatives. Strategy Formulation Strategic Implementation

Strategic Formulation Companys strategies shall be focus on two key areas market place and company environment. Business level strategies shall be applied for handling diversity in market place environment. Some of the strategies that can be taken up are Cost Leadership Strategy Differentiation Focused Cost Leadership Focused Differentiation

Corporate Level strategies should be adopted for organization level initiatives.

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Diversity Management Survey Analysis and Strategic Initiatives Strategy Implementation A business model described below can be used by organizations to implement the strategies derived. The model talks about having various phases from formulation to implementation to measurement to analysis and then improvement in the complete cycle.

Business Case Definition

Evaluation of the Results and reformulation of Strategy

Business Strategies

Evaluation of the key factors affecting the problem

Measurement of Objectives Using Scorecard

Development/ Implementatio n Initiatives

Figure 2

The business model measurement and analysis can be done using the Balanced Scorecard approach with the targets, measure and the initiatives for each of the key strategic points taken from the analysis phase section and targets based on the organization needs to come up with a tool for evaluation the growth of the organization.

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Diversity Management Survey Analysis and Strategic Initiatives

Figure 3 A Scorecard approach

Consolidation of the Strategies

Leadership Leaders who actively model and lead the integration of equality and diversity into their work practices will create a cascading effect throughout the organization. This means leadership that is committed to creating a workplace where equality and diversity are valued and mutual respect applies. This integration of equality and diversity into the leadership strategies will help build a group of talented, engaged managers of the required quality and diversity to meet the future needs. Workforce Profile Diverse knowledge, skills, and experiences help improve how work is done, leading to improved efficiency and better business results. Integrating equality and diversity into the recruitment strategies will help expand the pool of talented people who.

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Diversity Management Survey Analysis and Strategic Initiatives Learning and Growth Learning interventions that are appropriate for the organization, including its culture, demographics, and individuals' preferred learning styles, can help build the required capability that the organization needs to deliver on its plans. Having appropriate learning interventions also builds employee engagement. Integrating equality and diversity into the learning and development strategy will improve learning results and help create an innovative environment attractive to high achievers Diverse Customer/Community Perspective Satisfaction with service is affected by whether people believe they are treated with respect, and whether the workforce finds innovative ways to solve their difficulties. By integrating equality and diversity into your strategies for satisfaction with service, one will be creating an environment that will encourage the employees to seek innovative, customerfocused solutions and to treat customers fairly and with respect.

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Diversity Management In Practice

Diversity Management In Practice

Diversity management success through Indian Inc,

HLL: Employing rural women [Shakthi groups for promoting FMCG products] LIC: Diverse work force- every LIC agent acts like a brand ambassadors

Asian Paints
Turnover-36.7billion-Rs Manufacturing-Operations: 29-countries Market presence: 61 countries operates through its subsidiaries [Berger, APCO, SCIB, Taubmans] Asian Paints developed a Common Strategic Goals for the each of the business units. To create a common vision and imbibe a shared business culture between the people of Asian Paints and employees of the new units. To provide key leadership to the acquired companies. To integrate and consolidate the operations of Berger and SCIB with APIL Asian Paints in the Paint Market

Paint Market India

Other 18% Goodlass Nerolac Paints Ltd 15% ICI India LTD 17%

Asian Paints 33%

Berger Group 17%

Asian Paints

Berger Group

ICI India LTD

Goodlass Nerolac Paints Ltd

Other

Product Segmentation
Product Segm entation of Paints Market India

Industrial Paints 30%

Decorative Paints 70%

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Diversity Management In Practice

Growth Strategies of Asian Paints Based on Diversity management in India

Market Potential is 70 % of the paint industry QAM Step 2 Target Market could be attain 50 -60 % market share Current Market Share is 38%

Step 3

Step 1

Step by Step approach for Asian Paints India for Decorative paints market In the decorative market since the company is leader and is having 38% share Market Penetration strategy should applied to reach the target market as depicted above also. Actions being taken to implement this strategy include:a) Demographic Profile of People Asian Paints has tried to address these issues using the following: Market Penetration by expanding there outlets to small rural parts in India also. Having a diverse product portfolio b) Economic Diversity of People in India COLOR NEXT Asian Paints have introduced various products to the different class of people in India. They introduced the concept of COLOR NEXT which is introduced to take into account the changing lifestyle of the Indian population.

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Diversity Management In Practice

Diversity Management in Asian Paints International Business

Key Aspect of their international business strategies has been targeting the countries with India origin or countries which similar culture. Asian Paints global operations:-

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Diversity Management Conclusion

Diversity Management Conclusion

Conclusion
Diversity is not a case of representation of different nationalities or ethnicities. It is a process of creating greater wealth through increased creativity and productivity. Consistent internal communication and employee education is vital to gain support of all the stake holders. In Indian context, it may be confused with reservation or in American context it may be confused for affirmative action. And this can create a serious heartburn among existing employees. Care must be taken to explain the need, benefits and plans to create a diverse workforce. Ensure that the current employees have understood the management's plan to create a diverse workforce and linking to business goals. This involves having training programs, a recruitment strategy, and building a cadre of diversity aware managers. Finally, creating a diverse workforce takes time and even longer to reap the benefits. The management and leaders must not lose focus and interest in creating a diverse workforce - due to the lack of immediate returns.

Bibliography
Diversity as a Strategy HBR Case Study Managing Multicultural Teams HBR Case Study Human Resource Management Strategy People Management De Cieri Kramar Harvard Business Review on Brand Management Harvard Business Review on Managing People 2005fulldiversityreport.pdf- Securities Industry Association www.Asianpaints.com

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Diversity Management Conclusion

ANNEXURE I
Questionnaire prepared is available at the below URL www.vivekagarwal.info

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Diversity Management Conclusion Diversity Management Conclusion

Sponsored By:

Larsen & Toubro Limited , EmSyS