diversity material

THE MANAGEMENT OF WORKFORCE DIVERSITY AND THE IMPLICATIONS

FOR LEADERSHIP AT FINANCIAL ASSET SERVICES

by

L.J. ERASMUS

SHORT DISSERTATION

Submitted in partial fulfilment of the requirements for the degree

MAGISTER COMMERCII

in

BUSINESS MANAGEMENT

in the

FACULTY OF MANAGEMENT

at the

UNIVERSITY OF JOHANNESBURG

Supervisor: TFJ OOSTHUIZEN

MAY 2007

ii

Confirmation of Own Work

I, Lodewikus Johannes Erasmus, declare that this dissertation is my own unaided

work. Any assistance that I have received has been duly acknowledged in the

dissertation. It is submitted in partial fulfilment of the requirements for the degree

of Master of Commerce at the University of Johannesburg. It has not been

submitted before for any degree or examination at this or at any other University.

………………………………… ………………………….

iii

Executive Summary The Financial Asset Services Division, or FAS, is an integral part of Standard

Corporate Investment Bank’s operations. FAS offers high net-worth companies

services and products that can generate extra revenues.

Diversity is a new dimension that needs to be managed within South African

organisations. The contemporary manager might not be equipped to deal with

the new and unique set of challenges that accompany diversity related issues.

This work aims to provide managers a basis to explore the concept of diversity

management by investigating different management theories. This is also the

basis of questionnaires put to managers and employees to determine what

factors and dimensions influence leadership roles.

Having identified these dimensions and factors it is also investigated what

implications there are for leadership. Identified problem areas are brought to the

reader’s attention as well as recommendations based on sound diversity

management principles. This will provide management with a basis from which to

effectively manage diversity in the workplace at FAS.

iv

Acknowledgments This work is dedicated to all those very special people who had a hand in its

creation. The completion of this work is not due to the sole effort of the author but

belongs to all who have encouraged and supported me. My thanks go to the

following people:

• My parents, Nic and Frieda, without whose encouragement and support I

could never have achieved this goal.

• Amanda who sat beside me through many, many nights of quiet study.

Thank you for your love, encouragement and patience.

• My study leader, Theuns Oosthuizen who made time to impart his vast

knowledge and provide me with always encouraging criticism. A study

leader truly works just as hard on a dissertation as the student.

• At FAS, Sonja Pedall and Sarisha Sankar who assisted me greatly.

• Anneli and Rhiette at STATKON whose expertise was invaluable in the

completion of this work.

• Rika Venter who always has encouraging words for M.Com students.

• And lastly but definitely not least, Jesus Christ our Saviour who makes all

things possible. Thank You for the strength and determination to complete

this work. To God be the glory for ever.

v

Table of Contents

Chapter 1 Introduction 1.1.1 Background 1

1.1.1 Overview of Financial Asset Services 1

1.1.2 Concepts in Diversity Management 4

1.2 Problem Statement 7

1.2.1 Research Question 7

1.3 Objective of the Study 8

1.3.1 Primary Objective 8

1.3.2 Secondary Objectives 8

1.4 Methodology 9

1.5 Limitations of Study 9

1.6 Chapter Outline 10

1.6.1 Chapter 1: Introduction 10

1.6.2 Chapter 2: Literature Review 10

1.6.3 Chapter 3: Research Methodology 11

1.6.4 Chapter 4: Data Analysis and Interpretation 11

1.6.5 Chapter 5: Conclusions and Recommendations 11

Chapter 2 12 Literature Review 2.1 Introduction 12

2.2 Diversity Defined 12

2.2.1 Diversity Management Defined 13

2.3 Role Players in Diversity 15

2.3.1 Government 17

2.3.2 Employer and Employee 18

2.4 The Role of Leadership in Diversity Management 20

vi

2.5 Models for Managing Diversity 22

2.5.1 R. Roosevelt Thomas, Jr’s Generic Action options 24

2.5.2 Ann Morrison’s Specific Diversity Initiatives 25

2.5.3 An Integrated Strategic Framework for the Management

of Diversity 30

2.5.4 Barriers to Effective Diversity Management 32

2.6 Change Management 34

2.7 Conclusion 35

Chapter 3 36 Research Methodology 3.1 Introduction 36

3.2 Research Design 36

3.3 Sampling Strategy 36

3.3.1 Population 37

3.3.2 Size of Sample 37

3.3.3 Sampling Technique 37

3.4 Data Collection Method 37

3.4.1 Secondary Data 38

3.4.2 Considerations in Compiling the Questionnaire 38

3.4.3 Administering the Questionnaire 39

3.5 Data Analysis Method 39

3.5.1 Recording of Data 39

3.5.2 Structuring of Data 39

3.5.3 Analysis of Information 40

3.6 Ethical Requirements 40

3.7 Conclusion 41

Chapter 4 42 Data Analysis and Interpretation 4.1 Introduction 42

vii

4.2 Demographic Breakdown of Data Collected 43

4.3 Responses by Questionnaire Sections 44

4.3.1 Responses to Section 2 – Principles of Diversity Management 45

4.3.2 Responses to Section 3 – Barriers to Diversity Management 48

4.3.3 Responses to Section 4 - R. Roosevelt Thomas Jr’s Generic

Actions 50

4.3.4 Responses to Section 5 - Ann Morrison’s Specific Diversity

Initiatives 54

4.4 Conclusion 56

Chapter 5 58 Conclusions and Recommendations 5.1 Introduction 58

5.2 Conclusion 58

5.2.1 Section 2: Principles of Diversity Management 60

5.2.2 Section 3: Barriers to Diversity 60

5.2.3 Section 4: Roosevelt’s Generic Action Options 62

5.2.4 Section 5: Morrison’s Specific Diversity Initiatives 63

5.3 Recommendations 64

5.4 Summary 69

Bibliography 70

viii

List of Annexures Annexure A 73 Questionnaires Annexure B 84 Questionnaire Results Section 2 Annexure C 86 Questionnaire Results Section 3 Annexure D 88 Questionnaire Results Section 4 Annexure E 90 Questionnaire Results Section 4

ix

List of Figures

1.1 FAS Structure 2

2.1 Dimensions of Diversity 13

2.2 Tripartite Employment Relations 16

2.3 Spheres of Activity in the management of Cultural Diversity 23

2.4 Integrating Roosevelt’s Generic Options and Diversity Definitions 25

2.4 Integrating Morrison’s Diversity Initiatives into Spheres of Activity 29

2.5 Integrated Strategic Framework for Diversity Management 31

4.1 Section 2 Employee and Manager Responses 46




x

List of Tables

2.1 Common Diversity Practices 26

4.1 Responses: Ethnicity 43

4.2 Responses: Gender 44

4.3 Mean Comparison Section 2: Employees and Managers 46

4.4 Mean Comparison Section 2: Gender 47

4.5 Mean Comparison Section 2: Ethnicity 47

4.6 Mean Comparison Section 3: Employees and Managers 50



4.9 Mean Comparison Section 4: Managers and Employees 52



4.12 Mean Comparison Section 5: Managers and Employees 55



B1 Manager’s Responses 84

B2 Employees Responses 85

B3 Means and Level of Significance per group and Cronbach Alpha 85

C1 Manager’s Responses 86

C2 Employees Responses 87

C3 Means and Level of Significance per group and Cronbach Alpha 87

D1 Manager’s Responses 88

D2 Employees Responses 88

D3 Means and Level of Significance per group and Cronbach Alpha 89

xi

E1 Manager’s Responses 90

E2 Employees Responses 91

E3 Means and Level of Significance per group and Cronbach Alpha 91

1

Chapter 1 Introduction 1.1 Background

Financial Asset Services (FAS) is a division in Standard Corporate and

Investment Bank, currently known as CIB, which is subject to the same

organisational challenges as most of corporate South Africa. Greater regulatory

control is enforced because of environmental changes. These requirements

include for example of the Black Economic Empowerment Act, The Employment

Equity Act no.55 of 1998 and the Labour Relations Act of 1995. Even though the

concept of Diversity Management has existed long before these new acts came

into being it has not an extensively explored concept in South African business

In the custody market entities, such as banks, exist to keep share certificates of

clients in custody. These entities also ensure that when these shares are used in

transactions, the transactions occur accurately and efficiently. CIB and FAS has

become a significant world player in the custodian market. CIB provides

advanced financial solutions to local clients as well as foreign entities seeking

investment opportunities in South Africa. CIB and FAS fulfils a crucial facilitator’s

role in this market. FAS alone holds over 1 trillion rand’s worth of assets in

custody for the market.

1.1.1 Overview of Financial Asset Services In 2004 CIB: FAS was top rated by the Global Custody Survey as being the best

global custodian for African Markets (Van Hoepen, 2006). A global custodian

performs the service of keeping a client’s share certificates, in digital of physical

form, in a secure environment for a fee. They ensure that dealings involving

2

share instruments and assets occur efficiently and on time with the closing

agency such as the Johannesburg Securities Exchange (JSE) and STRATE

(Share Transactions Totally Electronic) through which all nominee companies’

stock and security trades must take place in South Africa.

FAS is made up of many inter functioning departments. A very important part of

FAS’ structure is the Customer Relations Management (CRM) department.

These include salespeople that directly communicate with clients and are

responsible for making sure that FAS’ products are visible in the market and

remains competitive and marketable among global competitors. As such they are

the most visible facet of CIB as it relates to potential and current clients. Another

prominent department that has intense customer contact is Securities

Lending/Borrowing. This department markets a service where a customer gives

FAS permission to trade with the clients’ available shares. This trading consists

of borrowing or lending these shares to generate income for the client. This is

done with a cooperative relationship with Andisa who is a large broker that is on

site.

Figure 1.1 FAS Structure

Source: Van Hoepen, 2006

Customer Relationship Management

Securities Lending and Borrowing

Financial Asset Services

New Product Development

Risk andCompliance

MoneyMarkets

3

Another integral department is Corporate Actions who note and inform customers

of any events that happen among companies with share holdings in SCIB that

influence them. Corporate events are noted when companies issue new shares

or when companies hold general meetings, etc

New Business and Product Development is the task of trying to capture

competitor’s clients or recruiting new clients. This is done by creating innovative

new products and outperforming the competition. These include companies like

ABSA, NEDCOR, Investec, Rand Merchant Bank and a host of other foreign

players such as Hong Kong Shanghai Banking Corporation (HSBC), Barclays

Bank and Bank of New York, to name but a few.

The Money Market department is another important revenue generating

department that ensure that customers who use their product are also protected

in terms of their bearer instruments that may easily be converted to cash assets.

They also trade with these in the market in order to generate income for clients.

The normal supporting functions in a financial institution such as CIB, like

Finance and Administration, Data Reconciliation, Risk and Compliance, assist

the entire organisation in its daily administration duties. The banking sector is

governed by a multitude of laws and regulations. The Risk and Compliance

department ensures that all agreements with clients follow the strict financial laws

in order to minimize the risk exposure and cost of the bank as well as losing face

with the market. They also ensure that all Disaster Recovery Plans are up to date

and executable without notice.

Each department has a manager that reports directly to either one of the two

directors in FAS. These two directors report directly to the chief executive officer

of CIB. He in turn reports directly to the CEO of Standard Bank Group.

Depending on the size of each department they might have supervisors who are

4

tasked with the overall administration of their teams. These tasks include human

resource administration, performance appraisals, monitoring and control.

CIB’s executive committee identifies that a structural change was required within

FAS. As a result many unit managers were retrenched early in 2006. At the same

time some of the remaining managers were promoted to FAS’ executive

committee level.

1.1.2 Concepts in Diversity Management “Managing diversity can be defined as a planned, systematic and comprehensive

managerial process for developing an organisational environment in which all

employees, with their similarities and differences, can contribute to the strategic

an competitive advantages of the organisation, and where no one is excluded on

account of factors unrelated to productivity” (Thomas, 1996:10). Diversity

management is a relatively new field in the South African business environment.

As such, little conclusive or region specific research has been done in South

Africa. According to Kreitner, (2001:37) diversity “represents the multitude of

individual differences and similarities that exist among people.” Kreitner’s

definition emphasizes three important issues about managing diversity:

• Diversity applies to all employees and do not only encompass certain

arbitrary differences but the entire spectrum of individual differences that

makes people unique. Therefore diversity cannot be viewed as only racial

or religious differentiation, but as all differences combined.

• The concept of diversity describes differences among people as well as

similarities. The discipline of managing diversity requires that these two

facets are managed simultaneously.

• Managers are expected to integrate the collective mixture of similarities

and differences between workers into the organisation.

5

As such, diversity can be described as having four layers (Kreitner, 2001:38):

• Personality: This describes the stable set of characteristics that

establishes a person’s identity.

• Internal dimensions: These are characteristics that strongly influence

people’s attitudes, perceptions and expectations of others. These include

factors such as age, race, gender, sexual orientation, ethnicity and

physical ability.

• External dimensions: These dimensions are personal traits that we can

assert a certain amount of control or influence over. They are factors such

as income, personal and recreational habits, religion, education, work

experience, appearance, marital status, and geographic location.

• Organisational dimensions: These dimensions pertain to the organisation

itself and include factors such as work field, division or unit, seniority,

union affiliation, management status and functional level.

Currently affirmative action is used as a method of attaining a diversified and

integrated workforce. Kreitner is of the view that (2001:40) “affirmative action is

an artificial intervention aimed at giving management a chance to correct an

imbalance, an injustice, a mistake or outright discrimination” and that it does not

foster a need to change leadership’s thinking about diversity management.

Jeffery (1996:11-13) argues that although affirmative action and black economic

empowerment is necessary, the private sector should be allowed to focus on

wealth and economic opportunity creation rather than just giving jobs to the

previously disadvantaged.

A higher level of “diversity awareness” from affirmative action is known as valuing

diversity. Valuing diversity emphasises the awareness, recognition,

understanding and appreciation of human differences. By valuing diversity

employees feel valued and accepted in that they are recognised as a valuable

resource that contributes directly an organisation’s overall success (Kreitner,

2001:41). Grobler (2003:49) states that in order for an organisation to value

6

diversity it must first understand the differences between valuing diversity and

employment equity. The fundamental difference is that employment equity is

enforced by legislation. Valuing diversity is the result of managerial desires to

gain competitive advantage through the use of diverse a diverse workforce’s

talents.

The highest level of “diversity awareness” is the discipline of diversity

management. It is the deliberate and focused creation of organisational changes

that enable all employees to perform up to their maximum potential (Kreitner,

2001:42). Israel can be used as example of how the valuing of diversity can turn

this issue into an asset to be used for the benefit of the organisation (Vermeulen,

1998:1). Israel is a country with a very diverse population containing many

religious, cultural and social groups, much like South Africa. The Israeli

population consists of many immigrants bringing with them the diverse ethno-

cultural practices of their countries of origin. This challenged the state to convert

these differences into a national asset (Hirsh, 1993:195).

Achieving competitive advantage through the management of diversity has

become an important managerial, and hence leadership, consideration (Thomas,

1996:17). From this it is clear that a management discipline needs effective

leadership in order for it to be successfully implemented. According to Kreitner

(2001:551) leadership is defined as “a social influence process in which the

leader seeks the voluntary participation of subordinates in an effort to reach

organisational goals.” Changing existing attitudes toward diversity in the

workplace clearly involves more that just decisive leadership but also the

cooperation of all employees as it affects their inter-personal relationships with

each other. Therefore managers must exhibit leadership traits and move beyond

the normal tasks of planning, organising and control. Managing diversity is a

business imperative, strategic priority and a competitive necessity (McEnrue,

1993:18-29). Daniel (1994:14) agrees with this viewpoint and adds that if

diversity is not utilised as a tool it might become business’ downfall.

7

1.2 Problem Statement Diversity Management and workforce diversity are terms that have become of

great importance in South Africa since workforce integration was enforced after

the official segregation policy was abolished. This forced integration creates

conflict and uncertainty in the workforce as leadership is not skilled in the

discipline of diversity management and its principles. Therefore managers do not

know how to effectively practice diversity management. Managers do not know

what factors contribute to effective diversity management or what specific

leadership tasks can be performed to effectively deal with diversity related issues

in the workplace. In completing this study, relevant theoretical works are

investigated in order to determine what factors could lead to the creation of a

conducive of destructive working environment as it pertains to diversity

management. In support it is also important to ascertain what the implications for

leadership are in order to create a healthy working environment through the

management of workforce diversity.

1.2.1 Research Question

• What does previous research describe as a good model for the managing

of workforce diversity?

• What does existing theory identify as factors influencing diversity

management?

• Is diversity management in Financial Asset Services influenced by cultural

perceptions?

• How is diversity management practiced at Financial Asset Services

among managers, supervisors and team leaders?

• What are the implications for leadership at Financial Asset Services in

order to apply effective diversity management principles?

8

1.3 Objective of the Study This body of work aims to provide management with the necessary guidelines for

effective diversity management in FAS. As such certain implications for

leadership, as it pertains to managers, supervisors and team leaders, are

highlighted. This is done to assist managers in the creation of a healthy working

environment, as it pertains to diversity management, through the application of

diversity management principles. The benefits lies herein that (Kreitner, 2001:42)

“employees viewed leaders as more accepting of diversity and more

desirable to work for when they demonstrated behaviours consistent with

diversity management as opposed to valuing diversity and affirmative action.” It is

also stated that (Kreitner,2001:49) “effectively managing diversity can influence

an organisation’s costs and employee attitudes, recruitment of human resources,

sales and market share, creativity and innovation, and group problem solving and

productivity.” As such it would be of great benefit if leadership took cognisant of

the fact that diversity management is an essential new facet of management.

1.3.1 Primary Objective This study’s primary objective is to create awareness of the influence of diversity

management in the creation of a healthy working environment considering the

manager’s role as a leader. 1.3.2 Secondary Objectives

• To identify various factors that influence effective diversity management

within Financial Asset Services.

• To identify certain trends as it pertains to certain demographical segments’

perception of diversity management.

9

• To propose recommendations that management and leaders can

implement based on the various influencing trends and factors in an

organisational context.

• To highlight the implications management must be aware of in order to

create a healthy working environment in terms of diversity management.

1.4 Methodology The concept of diversity management is investigated in order to gain insight into

how diversity management is applied as a management discipline. This

information is used to compile a questionnaire aimed at determining what

aspects currently present in FAS have an effect on the employees during the

process of managing diversity. The questionnaire is distributed per e-mail with a

covering note from a member of the FAS executive committee. The distribution

sample size includes leaders from supervisory and managerial levels of authority

within FAS and amounts to 40, representing the various demographic segments

currently present in FAS.

All information gained form the questionnaire are recorded and analysed

according to the various aspects that are being measured. Findings have been

used in order to gain insight and understanding as to what factors have an

influence on the diversity management process as it pertains to leadership.

1.5 Limitations of Study

It is very important to note that not much conclusive research has been done in

the field diversity management in South Africa. Therefore the relevancy of

previous research done outside South Africa has to be practically evaluated in

order to gain insight into the subject matter. In some cases the quoted theory

may be more applicable than in other cases, however this should not be

regarded as fact before more conclusive research is done. Therefore the author

10

advises that the manager who evaluates the research findings should use

discretion in following a particular course of action. It must also be noted that the

research findings only reflects the perceptions of Standard Bank employees in

the Financial Asset Services unit and can therefore not be assumed to be

universally applicable to all Standard Bank employees, or those from other

financial institutions for that matter.

1.6 Chapter Outline 1.6.1 Chapter 1: Introduction The purpose of this chapter is to provide the reader with background information

as well as to clarify the research methodology, scope and purpose of this

dissertation. The introduction includes an overview of a business unit of

Corporate Investment Bank, namely Financial Asset Services, and how diversity

management influences different levels of leadership within that structure. A

summary of the literature used in Chapter two is provided. The objectives of this

study are clearly defined. The methodology used for the gathering, analysis and

interpretation of information gathered is also clearly set out within this chapter.

1.6.2 Chapter 2: Literature Review The primary objective of this chapter is to gather and analyse any relevant

information from previously conducted studies. While this will involve the analysis

of secondary data pertaining to diversity management, greater emphasis will be

placed on recent studies done in South Africa because of its relevance. Ancillary

and complementary concepts pertaining to diversity management will also be

investigated. This will serve to describe diversity management and its links to

leadership within a dynamic organisational environment.

11

1.6.3 Chapter 3: Research Methodology This chapter details the methodology used by the author to decide what research

design would be appropriate to this particular study. An overview of the sample

from which the data is obtained will also be provided as well as the collection

method and measurement instrument.

1.6.4 Chapter 4: Data Analysis and Interpretation In this chapter the data obtained through the research process is analysed and

interpreted. Each question used in the questionnaire is described and clarified to

which the information gathered is compared. The processed data is collated in

order to discover statistical trends that are the basis for all recommendations and

conclusion for this study.

1.6.5 Chapter 5: Conclusions and Recommendations In this chapter the summary of findings is presented for the primary and

secondary objectives. Conclusions that are reached form the data gathered

during the research process will be presented while guidelines for addressing

diversity management issues in FAS will be provided and recommendations will

be made.

12

Chapter 2 Literature Study

2.1 Introduction Diversity management is a term that is not always clearly understood. Diversity

as a concept is not always understood. This chapter attempts to analyse and

understand the meaning of diversity and diversity management as a discipline.

This will give leadership the opportunity to decide on how to implement diversity

management as a concept and a discipline within the organisational

environment.

2.2. Diversity Defined

Diversity is the collection of many individual differences and similarities that exist

among people (Kreitner, 2001:37). Grobler (2002:46) also supports this view by

adding that each individual is unique but also share any number of environmental

or biological characteristics.

Diversity has a primary dimension that exhibits itself in the core differences

between individuals. These primary differences also have the most impact in

initial encounters and serve as filters through which people view the world. These

differences of course include for example aspects such as race, gender, sexual

orientation, age, ethnicity and physical qualities. Secondary dimensions are not

as noticeable at first and can even evolve or change throughout different

encounters. These types of aspects include for example education, military

experience, income, geographical location and religion. These qualities only

become evident after some interaction has occurred between individuals. This is

demonstrated in Figure 2.1

13

Figure 2.1 Dimensions of Diversity

The so-called culture-shock is experienced and is aggravated by the fact that

many, if not most people, live in a relatively homogenous community. The first

encounter people have with a diverse population would be in the work place. 2.2.1 Diversity Management Defined

Diversity management is a new discipline that holds great benefits for those

leaders who implement it properly. Workforce diversity refers to those differences

in an enterprise or organisation that have an influence on the performance of the

workforce. These differences are not limited to race, gender, ethnicity, nationality

Military experience

Religion

Income

Work Experience

Education

Family Status

Geographic Location

Organisational Role and Level

Work Style

Relations Style

Age Gender

Race Ethnicity

Mental & Physical Abilities

Sexual Orientation

Source: Loden, 1996:14

14

or religion and may even include different ways of thinking (Buhler, 1993:17-19).

The inclusion of the term “management” also implies that it is a phenomenon that

needs to have the aspects of organisation, planning and control associated with it

as it pertains to organisations.

Diversity management has been termed by leading academics in the past in the

South African context as “the process whereby black and white women are

provided with the opportunity to participate fully in the organisation and the

society in which they live” (Human, 1992:54). However this seems to be very

restrictive if an organisation wants to achieve certain goals beyond gender

equality. There are various diversity issues in an organisation that may not have

any to do with race or gender. Issues such as disability and sexual orientation do

not add to diversity according to Human’s definition.

More recently, scholars broaden the definition of diversity and have categorised

the term into three definitions as (Grobler, 2003:46):

• The politically correct term for employment equity/affirmative action: This

definition represents a very narrow view of diversity and is most likely to

be found in an organisation with no formal diversity policies or

programmes.

• The recruitment and selection of ethnic groups and women: This definition

reflects the reality that many diversity programmes focus on employment

regulation concerns.

• The management of individuals sharing a broad range of common traits:

This is the broadest definition and is likely to be used in organisations with

formal diversity programmes.

Clearly an organisation may choose what definition to apply as it relates to their

approach and commitment to such programmes. Grobler is of the view that

diversity management is “a planned, systematic and comprehensive managerial

process for developing an organisational environment in which all employees,

15

with their similarities and differences, can contribute to the strategic and

competitive advantage of the organisation, and where no-one is excluded on the

basis of factors unrelated to productivity” (Grobler, 2003:50). Therefore Grobler

only allows for groups or individuals to be excluded on the basis of unproductive

work performance. The definition put forward by Human clearly excludes

undesignated groups, that is to say white males, from the scope of diversity

management. Human’s definition on diversity management can therefore be

commensurate with definitions of workforce diversity where there are no formal

diversity management programmes or where regulatory pressures are most

intense. Grobler’s definition will be acceptable to organisations that have

invested in formal diversity management programmes and followed through on a

genuine commitment towards their human capital.

Grobler is also supported by previous scholars who feel that diversity adds value

to organisational goals. Fuhr’s (1994:10) definition of managing diversity has to

do with the creation of a working environment in which everyone has a true

sense of belonging and worth where the barriers of the fulfilment of human

potential has been removed.

This is furthermore supported by Daniel (1994:14) where the author states that

that diversity management is the process of developing an environment

• that fosters awareness, value and acceptance of individual differences;

• that gives employees opportunities and judges them fairly on their talents

and contributions;

• and thereby attempting to address expectations and remove or reduce

biases and stereotypical behaviour.

Clearly these definitions require leadership to focus more on physical human

capital than on legislation that require a specific statistical outcome as prescribed

by the employment equity act.

16

2.3 Role Players in Diversity

There is an economic relationship between the employer and employee and ever

since the Industrial Revolution the employment relationship has become

increasingly complex. The State had to enter as a third party to this relationship

to provide a legal framework in which the primary relationship between

employees and employers can be managed (Slabbert, 2002:10). This

relationship is illustrated in Figure 2.2.

Figure 2.2 Tripartite Employment Relations

The three role players can be described as such (Slabbert, 2002:10):

• Employees: Worker’s ‘lease’ their labour to employers. They make their

potential available to organisations and expect reasonable recompense for

services rendered.

• Employers: Employers manage and lead their employees. They must

ensure the best utilisation of labour within the legal and organisational

framework.

• The State/Government: The state controls the labour environment but also

provides services to both parties in the primary relationship. In controls the

Employee (with representatives and/or organisations)

Source: Slabbert, 2002:10

Primary Relationship

Employer

Secondary Relationship

Secondary Relationship

State

Legislation

17

primary relationship through the establishment of certain laws, i.e. the

employment equity act. It renders services in that it assists both parties to

manage the primary relationship in an orderly manner by providing

structures in which activities such as dismissal and strikes may take place,

i.e. the labour court and the Council for Conciliation, Mediation and

Arbitration (CCMA).

2.3.1 Government The vast majority of the South African workforce is made up of previously

disadvantaged individuals. This group includes all people in South Africa except

white males and includes both genders. As such the first democratically elected

government decided to redress the inequalities of the past under the Apartheid

era. Affirmative action is such a measure where the government is attempting to

rectify these imbalances artificially.

Affirmative action is a process that is described in the Employment Equity Act no.

55 of 1998. This is done for the purpose of “achieving equity in the workplace by

promoting equal opportunities and fair treatment in employment through the

elimination of unfair discrimination and implementing affirmative action measures

to redress the disadvantages in employment experienced by designated groups

(Africans, coloureds, Asians, women and people with disabilities) to ensure their

equitable representation in all occupational categories and levels in the

workplace” (Employment Equity Act, no. 55 of 1998). Thus discrimination is only

accepted for the purposes of affirmative action or based on inherent

requirements of a specific position (Grobler, 2003:150).

This legislation was implemented after it was found that discriminatory practices

still existed in the workplace after the 1994 elections and drafting of the new

constitution. The impact of this piece of legislation is so great that it forced

18

organisations to ensure their human resource administrators are familiar with the

detail of this act.

2.3.2 Employer and Employee According to Grobler (2003:46) the term diversity management can have three

definitions in South African organisations:

• The politically correct term for affirmative action or employment equity.

• The recruitment and selection of ethnic groups and women.

• The management of individuals sharing a broad range of common traits.

The first two definitions are likely to be used in organisations where no formal

diversity awareness training or diversity management programmes exist. These

organisation’s diversity programmes focus primarily on employment regulation

concerns. The third viewpoint is the broadest and is likely to be used in

organisations with effective diversity programmes.

Grobler (2003:49) states that in order for an organisation to value diversity it must

first understand the differences between valuing diversity and employment

equity. Jeffery (1996:11-13) argues that although affirmative action and black

economic empowerment is necessary, the private sector should be allowed to

focus on wealth and economic opportunity creation rather than just giving jobs to

the previously disadvantaged. The fundamental difference is that employment

equity is enforced by legislation. Valuing diversity is the result of managerial

desires to gain competitive advantage through the use of diverse a diverse

workforce’s talents.

The banking sector has cooperated with other financial institutions and the

National Economic Development and Labour Council (NEDLAC) in creating the

financial sector charter. In this charter the following points are argued as to why

such a charter is necessary (www.treasury.gov.za):

19

• Despite significant progress since the establishment of a democratic

government in 1994, South African society remains characterised by

racially based income and social services inequalities. This is not only

unjust, but inhibits the country’s ability to achieve its full economic

potential;

• BEE (Black Economic Empowerment) is a mechanism aimed at

addressing inequalities and mobilising the energy of all South Africans. It

will contribute towards sustained economic growth, development and

social transformation in South Africa;

• Inequalities also manifest themselves in the country’s financial sector. A

positive and proactive response from the sector through the

implementation of BEE will further unlock the sector’s potential, promote

its global competitiveness, and enhance its world class status;

• Equally, the financial stability and soundness of the financial sector and its

capacity to facilitate domestic and international commerce is central to the

successful implementation of BEE.

The charter also specifically notes that there are low levels of black participation,

especially of black women, in meaningful ownership, control, management and

high-level skilled positions in the sector. The charter specifically states that the

sector will endeavour to create a non-racial environment in which business can

operate. That being said it also sets a number of black ownership targets that

need to be attained at certain times points in time. Therefore the financial sector

has adopted the narrower definition based on affirmative action and employment

equity.

However, it is still leadership’s decision on how to implement the charter together

with diversity management. This will determine the employee’s reaction toward

diversity management. Economic benefits can result form employees and

leadership valuing diversity, Effective leadership and the implementation of

20

effective diversity awareness programmes will result in individuals valuing each

other’s differences.

2.4 The Role of Leadership in Diversity Management

The management of employment relations within the organisational context,

which includes diversity management, requires a strategic approach. This

strategic orientation implies that management must adopt a long-term approach

in the planning, organisation, leadership and control of employment relations as a

method of achieving organisational goals (Slabbert, 2002:14).

The implementation of diversity management programmes require management

and strong leadership to do so successfully. Diversity has become a strategically

important issue. The management teams in this area have a critical task as it

involves the management of the most important asset of an organisation: the

organisation’s human capital.

Human capital refers to the knowledge, skills, competence and other attributes

embodied in individuals that are relevant to economic activity (Thornbury,

2003:6). Human capital can be viewed as the master resource because people

acquire skills and competencies that create and control other resources

(Carnevale, 1983:51). The human resources department has control of human

capital and delegates control tasks to line managers. This structure needs to

implement enforceable legislation in such a manner that the organisation’s goals

and objectives are not hindered in any way. This raises the importance of

efficient planning, implementation and control diversity management

programmes for the purpose of enhancing the organisation’s operations. This

results in greater profitability for the organisation.

Legislation may be the initiator of such programmes but it is up to leadership to

decide how policies can be formed to achieve organisational goals. Jack Welch

21

states: “People first, strategy second” (2001:383). A strategy is developed with

the human capital in mind according to this line of thought. Potentially

demoralising situations exist such as the uncertainty of the effects of affirmative

action. These situations need to be managed in such a manner that it would have

the minimum effect on the morale of staff and the productivity of the organisation.

The implementation of such tactics needs to originate from strong leadership in

order to overcome potential resistance to such changes. A centralised decision

making model is well suited for this purpose as all changes can be coordinated

and enforced if need be (Hill, 2005:444). One of the strategic leader’s main

responsibilities is to create an environment and organisational culture that

enables the organisation to deal with the issue of diversity (Van der Colff,

2003:113). Therefore leadership has to convert an organisational culture that

was exclusive to being more inclusive and tolerant of diverse characteristics.

However, many decentralised decisions need to be made regarding

empowerment and identifying employees for advancement. Line managers need

to have the power to implement tactical decisions to fit in with the overall

strategic vision of organisation as it relates to diversity management in their

relevant scopes of leadership.

It must therefore also be understood that employees are empowered by the

organisation’s vision and direction. These goals can only be reached by an

organisation that exhibits and develops entrepreneurship and innovation in its

corporate culture (Van der Colff, 2003:113). A link between the management of

strategy and culture becomes apparent as and when major changes must occur.

Many of these changes may sprout from the enforceable legislation or pre-

emptive diversity management programmes.

Jeffery (1996:11-13) argues that although affirmative action and black economic

empowerment is necessary, the private sector should be allowed to focus on

wealth and economic opportunity creation rather than just giving jobs to the

22

previously disadvantaged. Managing diversity is a business imperative, strategic

priority and a competitive necessity (McEnrue, 1993:18-29). Achieving

competitive advantage through the management of diversity has become an

important managerial, and hence leadership, consideration (Thomas, 1996:17).

According to Kreitner (2001:551) leadership is defined as “a social influence

process in which the leader seeks the voluntary participation of subordinates in

an effort to reach organisational goals.” Changing existing attitudes toward

diversity in the workplace clearly involves more that just decisive leadership. It

also involves the cooperation of all employees as it affects their inter-personal

relationships with each other. Therefore managers must exhibit leadership traits

and move beyond the normal tasks of planning, organising and control.

2.5 Models for Managing Diversity An organisation needs to be clear about what definition it wants to use as an

approach to manage diversity. There is a definite business necessity in applying

diversity management principles that go beyond any regulatory compliance. An

interesting but worrying development in South Africa is the fact that diversity

management programmes have not had great success. It is still a relatively new

concept in the South African working environment. Grobler puts forward the

following explanations as to why this is the case (Grobler, 2003:50):

• There are no following-up activities after the initial training phase;

• There are few or no incentives for managers to increase the diversity of

their workgroups;

• Top-management view diversity as a human resources issue that does not

contribute the organisation’s long-term success.

Furthermore it is also interesting to note that attitudes toward diversity

management vary depending on who is asked. The human resources

department is relatively positive about such steps while line management many

times only see this as another activity that complicates their current role.

23

There are a wide range of areas that need attention if these problems are to be

overcome. These areas can be illustrated in Figure 2.3.

Figure 2.3 Spheres of Activity in the management of Cultural Diversity

Source: Grobler, 2003:51

Organisational Culture • Valuing Differences • Prevailing Value

System • Cultural Inclusion

HR Management Systems • Recruitment • Training and

Development • Performance

Appraisal • Compensation and

Benefits • Promotion

Mind-sets about Diversity • Problem or

Opportunity? • Challenge met or

barely addressed? • Level of majority

culture buy-in?

Cultural Differences• Promoting knowledge

and acceptance • Taking advantage of

opportunities diversity provides

Educational Programmes • Improve schools • Educate

management on valuing differences

Higher career involvement of women

• Dual-career couples

• Sexism and sexual harassment

• Work-family

Heterogeneity in race/ethnicity/nationality

• Effect on cohesiveness communication, conflict, morale

• Effects of group identity on interactions (i.e. Stereotyping)

• Prejudice (i.e. Racism)

Management of Cultural Diversity

24

A diversity management initiative must be able to effectively support any of the

abovementioned spheres of activity. The following three models are presented as

possible ways of implementing diversity management initiatives:

• R. Roosevelt Thomas, Jr’s Generic Action options

• Ann Morrison’s Specific Diversity Initiatives

• An Integrated Strategic Framework for the Management of Diversity

2.5.1 R. Roosevelt Thomas, Jr’s Generic Action options Thomas identifies eight responses for managing diversity (Kreitner, 2001:54):

• Include/Exclude: Here the organisation may resort to tactics described by

affirmative action. This simply requires the organisation to increase or

decrease in number the group in question.

• Deny: An organisation may simply decide to ignore the problem. Current

legislation like the Employment Equity Act does not make this option

viable.

• Assimilate: An organisation that chooses this action hopes that the

minority will become like the majority. Essentially the organisation will try

and enforce homogeneity among the workers through new worker

orientation and referral to organisation manuals instead of managing a

diverse workforce.

• Suppress: Workers who struggle to adapt or function in an organisation

are simply told to stop complaining. This tends to discourage workers and

creates an unpleasant working environment where diversity is not valued.

• Isolation: The individuals who are different from the organisational or

dominant culture are not involved in organisational change.

• Tolerate: Differences among individuals are accepted but not valued.

These differences are also not managed in such a way to create optimum

economic value for the organisation.

25

• Build Relationships: This option is built on the premise that employees

with good relationships can overcome their cultural differences.

Leadership encourages individuals to accept and understand each other.

• Foster mutual adaptation: This option goes beyond acceptance and

understanding differences. Individuals realise that everyone and

everything is subject to change and that each others differences are

important.

An option or combination of options will be chosen depending on the

organisation’s view and commitment of diversity management:

Figure 2.4 Integrating Roosevelt’s Generic Options and Diversity Definitions

Source: Kreitner, 2000:54

2.5.2 Ann Morrison’s Specific Diversity Initiatives Ann Morrison conducted a survey a number of organisations that successfully

managed diversity (Kreitner, 2001:56). She identified a number of practices that

Total commitment: Diversity highly valued

Purely Employment Equity Concerns

Mutual Adaptation Build Relationships Tolerate Isolation Suppress Assimilate Deny Include/Exclude

26

fall into three main categories namely accountability, development and

recruitment:

• Accountability: Leadership must be responsible in treating diverse

employees fairly.

• Development practices: These practices focus on preparing diverse

employees for greater responsibilities and advancement. This is especially

important in the South African environment among previously

disadvantaged individuals. This is also supported by the Skills

Development Act.

• Recruitment practices: These practices focus on attracting applicant at all

levels who are willing to take on responsibilities. In South Africa the

Employment Equity Act is used to target designated groups.

The most common activities in each category are listed in Table 2.1.

Table 2.1 Common Diversity Practices

Accountability Development Recruitment

Top management

personal intervention

Diversity training

programmes

Targeted recruitment of

non-managers

Internal advocacy groups Network and support

groups

Key outside hires

Emphasis on

Employment Equity

statistics

Development

programmes for high

potential managers

Extensive public

exposure on diversity

(AA)

Inclusion of diversity in

performance evaluation

goals

Informal networking

Activities

Corporate image as

liberal, progressive or

benevolent

Inclusion of diversity in

advancement decisions.

Job rotation Partnerships with

educational institutions


27

Morrison’s model must be able to support the spheres of activity in figure 2.2 in

order for diversity initiatives to be effective. As such the three categories

identified by Morrison can support these spheres in these various ways:

Accountability

• Human resource management systems are administration systems and

provide management with data in order to efficiently mange the

organisation’s human resources. Leadership is accountable for its

decisions and therefore the systems must provide correct information.

Leadership must also ensure that these systems perform their functions

accurately.

• It is up to management to reinforce the organisational culture. This may

include setting an example when valuing differences are an issue.

• Leadership must also be accountable for higher career involvement for

women and the development of other minorities.

• Leadership must be able to assess the current mindset in the organisation

regarding diversity issues. Leadership must also be able to take decisive

action on any such issue.

Development

• Human resource management systems are important for tracking the

development of high potential employees as well as for proper career

planning for other diverse employees.

• Career women must also benefit from better development in order for

them to provide value to the organisation. The developmental function

must also help provide women with the opportunity to network among

other employees.

• Leadership and employees alike need to be educated on the value of

diversity.

• Training programmes must be implemented to change mindsets on

diversity that do not fit in with organisational goals culture.

28

• Leadership and employees need to be made aware that cultural

differences do exist. Ethnocentrism is not conducive to an effective

working environment where it concerns diversity management.

Recruitment

• Human resource management systems provide the recruitment function

with appropriate information regarding employment equity decisions.

• Recruitment must try and take advantage of the opportunities diversity

provides by recruiting people with appropriate skills that support the

organisational goals.

• Recruitment must try end ensure the heterogeneity of the workforce by

recruiting individuals who will fit in with a diverse organisational culture.

Figure 2.4 illustrates how Morrison’s specific diversity initiatives may support the

spheres of activity in diversity management.

29

Figure 2.4 Integrating Morrison’s Diversity Initiatives into Spheres of Activity


Morrison found in her study that organisations who apply these practices are

successful as a result of their application. Diversity awareness programmes that

employ these activities result in the successful management of workforce

diversity. To apply this model the organisation will need to be highly committed to

diversity management and not just to employment equity.

Development • Diversity training programmes • Network and support groups • Development programmes for high

potential managers • Informal networking Activities

Accountability • Top management personal

intervention • Internal advocacy groups • Emphasis on Employment Equity

statistics • Inclusion of diversity in performance

evaluation goals • Inclusion of diversity in advancement

Organisational Culture

Mind-sets about Diversity

HR Management Systems

Cultural Differences

Higher career involvement of women

Educational Programmes

Morrison’s Diversity Initiatives Spheres of Activity

Recruitment • Targeted recruitment of non-

managers • Key outside hires • Extensive public exposure on

diversity (AA) • Corporate image as liberal,

progressive or benevolent • Partnerships with educational

Heterogeneity in race/ethnicity/nationality

30

2.5.3 An Integrated Strategic Framework for the Management of Diversity Morrison and Roosevelt’s models are lacking in that its approaches only serve in

identifying best practices in diversity management. Although the results are

valuable it needs to be translated into and actionable strategic plan.

The integrated strategic model is a meaningful and practical framework in which

to apply strategic principles in diversity management. This model contains

elements from Morrison’s model as well as decisions made from Roosevelt’s

generic actions.

31

Figure 2.5 Integrated Strategic Framework for Diversity Management

Source: Peterson, 1998:70

The organisation’s vision, mission and values are determined by top

management and are imposed on the rest of the organisation to form the

organisational culture. If diversity is not valued at this level of the organisation

then it will be reflected at lower levels of management. The human resource

vision is a subset of the organisation’s overall vision. Values like equal

opportunity and value for differences must also be included.

The strategic steps and their resultant outputs are important:

Policy and resources affecting all functions

Benchmarking and baseline determination

Training and development, enforcement and exposure actions

Balanced and collective approach – building blocks

Objective linkage to performance, management systems and networks

Organisation Vision, Mission, Values

Top management commitment

Human Resource Vision

Needs Analysis

Selection Practices

Implement Collective Action Programme

Measure Changes

Disseminate Results

Strategic Steps Output

32

• Obtain top management commitment to ensure that desired values and

initiatives receive the highest support. This is crucial to the success of the

diversity management process.

• Needs analysis needs to be done in order to asses the prevailing attitudes

and perceptions surrounding diversity and the management thereof.

• Selecting the best combinations of responses, actions and best practices.

Morrison and Roosevelt’s initiatives and actions may be looked to provide

the manager with avenues in which to pursue successful diversity

management. The manager must keep in mind that other options and

actions are available to be implemented and must proceed in such a

manner that would be the most beneficial to the organisation.

• Implementing the collective action programme. This is the result of

implementing the right mix of practices as prescribed by the needs

analysis. Building blocks must be produced in order for the continuation of

such a programme.

• The results must be disseminated to the various parties involved for

review and corrective purposes.

This guideline is a suitable strategic model for managers. Leadership must

always be aware that certain best practices may not always be applicable to all

situations. All proposed actions and initiatives must be thoroughly studied in

order to determine its viability in the organisational environment.

2.5.4 Barriers to Effective Diversity Management The management of diversity are also subject to several potential challenges that

decisive leadership must overcome. The most common barriers tot the

implementation of diversity programmes are (Kreitner, 2001:53):

• Inaccurate stereotypes and prejudice: If differences are viewed as

weakness diversity management efforts will be viewed that competence

and quality will be sacrificed.

33

• Ethnocentrism: This mode of thinking allows one to enforce on others their

culture and values because they believe that is superior to others.

• Poor career planning: Opportunities for diverse people to advance are not

actively sought out and presented to deserving candidates.

• An unsupportive and hostile working environment for diverse employees:

Diverse employees are excluded from social activities and are thus

prevented from forming networks among other employees.

• Lack of political initiative or ability on the part of diverse employees:

Diverse employees do not advance because they are not knowledgeable

about power networks and how to get involved in office politics. Women

are particularly susceptible to this challenge as they are not always viewed

as equals.

• Difficulty in balancing career and family issues: Women are also most

likely to be presented with this challenge. In modern culture women are

still expected to take care of young children and to manage the household.

Although attitudes are shifting women still bear the greatest household

responsibilities.

• Fears of discrimination: A major problem, especially in South Africa, is the

feeling that diversity efforts are reverse discrimination. Whether because

of a sense of entitlement or genuine losses by some individuals, this is still

a widely held belief among undesignated groups.

• Diversity is not seen as an organisational priority: Employees may not

view diversity efforts as work contributing to the overall success of the

organisation. As such these tasks delegated by leadership to employees

are not effectively performed.

• The need to revamp the organisation’s performance appraisal and reward

systems: The management of diversity as success criteria need to be

added to reinforce diversity efforts. If these success criteria are not

implemented in appraisals employees will never view it as necessary

work.

34

• Resistance to change: People resist change for many different reasons

like fear of change, peer pressure, fear of failure or a climate of mistrust.

The management of diversity requires organisational and personal

change.

It is up to leadership to overcome these challenges by properly informing and

managing changes and perceptions among groups who perceive they are

threatened. The following models describe actions an organisation may perform

in the discipline of diversity management.

2.6 Change Management

Because a change in perception is implied, leadership may need to adhere to

change management principles (Kreitner, 2003:668). Kotter advises leadership to

implement change management by not failing to:

• establish a sense of urgency: Leadership must provide a compelling

reason to accept diversity management principles

• create a guiding coalition: People with influence and power need to lead

this change

• develop a vision and strategy: A strategic plan with the goal of effective

integration of diversity into everyday day business needs to be formulated

• communicate the change vision effectively: This goal and vision must be

consistently communicated in clear terms to all affected

• empower broad-based action: The barriers to diversity management must

be addressed and eliminated

• generate short-term wins: By setting small achievable goals, progress will

become more visible

• consolidate change and produce more change: The coalition for change

must build on short-term wins.

2.7 Conclusion

35

Leadership is faced with a decision as to what definition of diversity management

it wants to apply. Although the definition that is supported by employment equity

considerations is more easily implemented, it does not provide optimal value as

the broader definition’s application would. The models put forward are not a

complete reference as to how diversity should be managed. Leadership can

however be confident enough to apply these principles in the everyday and

strategic management of diversity. Leadership must be aware that the

management of diversity not only creates a healthy working environment but also

translates into long-term profit and growth. Leadership must be totally committed

to diversity management programmes and effort for it to be successful.

36

Chapter 3 Research Methodology

3.1 Introduction In order to satisfy the secondary objectives of this study the researcher must

gather data with the aim of identifying various factors in the Financial Asset

Services department that may influence leadership’s perception on diversity

management. The purpose of this chapter is to describe the methodology utilised

to obtain the data to determine these influencing factors. The particular sampling

strategy used in the data gathering process is explained. As with all data

gathering projects there are ethical considerations that need to be taken into

account. These are also provided.

3.2 Research Design

The researcher has distributed a questionnaire to selected employees within FAS

with the aim of determining factors that influence leadership as it currently

pertains to diversity management in the department.

3.3 Sampling Strategy In order to explore the factors influencing leadership as they practice diversity

management the researcher has identified to distinguishable groups of

leadership involved in this study. Firstly, all leaders such as departmental

managers and supervisors will receive questionnaires. These leaders give

direction in a strategic and operational sense to lower grade leaders and as such

it will be necessary to identify what factors will influence this group. Secondly, the

subordinates of these managers are also given questionnaires to complete. This

37

group will perceive how leadership applies diversity management principles in

the working environment. It is necessary to establish what factors influence these

leaders and what they perceive higher management’s stance is regarding

diversity management.

3.3.1 Population

The target population is all the managers and employees at the Johannesburg

branch of Standard Bank’s Financial Asset Services division.

3.3.2 Size of Sample The researcher endeavours to obtain completed questionnaires for all 110

managers and supervisors as well as all 721 employees at the Johannesburg

branch of the Financial Asset Services division.

3.3.3 Sampling Technique All higher grade leaders are identified as managers with an official management

post as determined by Standard Bank Structures. For lower grade leaders the

researcher will approach as many randomly selected supervisors and team

leaders as possible as identified by managers within FAS.

3.4 Data Collection Method In order to satisfy the secondary objectives of this study, the researcher

distributed questionnaires to all appropriate individuals within the target group

and collected the data.

38

3.4.1 Secondary Data In order to satisfy the primary objectives, the researcher analysed and made

recommendations based on secondary data. For this section original works have

been considered with emphasis on data pertaining to South Africa where it could

be found. Aspects of the secondary data discussed in chapter two has been

utilised to create the questionnaire that would help in satisfying the secondary

objectives.

3.4.2 Considerations in Compiling the Questionnaire This questionnaire has been created in accordance with FAS guidelines and

corporate standards that ensure individual anonymity as well as confidentiality.

The respondent of a questionnaire is identified by means of specific details such

as name, employee number or department.

The questionnaire consists of three sections. The first section contains a

covering letter that will explain the questionnaire’s purpose, procedure of

completion as well as the rights the respondent has in completing it. The second

section of the questionnaire solicits basic information that will assist in dividing

the respondents in basic demographic groups. This section would ask for age

and other demographic information. The third part of the questionnaire is the

body that will solicit all the information that will be needed to satisfy the

secondary objectives.

Before the questionnaire is distributed it is essential to obtain approval for such

research to be conducted as well as to pre-test the questionnaire. This is done to

ensure that no important aspects are overlooked and that all the questions are

easily understandable. Approval to distribute the questionnaire has been sought

from the Standard Bank Group Human Resources department as well as the

director of FAS. To ensure a low non-response rate the questionnaire will be

39

distributed from the desk of the director’s secretary. The manager’s of two

departments were asked to complete the questionnaire and comment on certain

aspects thereof such as whether the questions are understandable. Since the

meaning of the questionnaire was not altered these questionnaires were also

included in the study.

In order to minimise the impact on employee time demands this questionnaire

has been designed so that it would take no more than 20 minutes to complete

and submit to the researcher.

3.4.3 Administering the Questionnaire The questionnaire is distributed in physical form rather than being e-mailed, the

reason being that response rates to e-mailed questionnaires are notoriously low.

The researcher will also personally collect to completed questionnaires from the

respondents.

3.5 Data Analysis Method 3.5.1 Recording of Data Each respondent records his or her answer by marking a particular response

box. As such the data is recorded by each respondent. The researcher will

retrieve all completed questionnaires from each department personally.

3.5.2 Structuring of Data After all completed questionnaires are in the researcher’s possession the

responses are coded, summed and tabulated on an Excel spreadsheet. For this

reason the questionnaire has been pre-coded to help facilitate this action. During

40

this process the researcher will check all questionnaires for completeness before

presenting them to Statkon ant the University of Johannesburg for tabulation.

3.5.3 Analysis of Information After the information has been captured the information is filtered and grouped by

respondent, leadership level and demographic group. Graphical depictions are

used to discover underlying trends and allow conclusions to be formulated. The

researcher has made use of graphical representations of the data depicting each

relevant factor as a percentage of the total number of incidents. Because of the

similar nature of some questions it is possible to cross check for consistency in

certain responses.

3.6 Ethical Requirements Certain ethical considerations formed part of this study as it pertains to the

respondent:

• The researcher has explained the implications and benefits of the study.

• The researcher cannot did not force any respondent to complete the

questionnaire.

• The researcher must not lead the respondent to a desired outcome of the

study objectives.

• All information submitted by the respondents are considered as

confidential information.

• The respondent has been made aware of his or her right to anonymity.

• The respondent’s available time has been taken into account by

accommodating with a short and easily understandable questionnaire.

41

3.7 Conclusion The researcher must ensure at all times that the methodology used to carry out

research will lead him or her to unbiased conclusions by gathering information

with integrity. As such it is also the researcher’s responsibility to behave him or

herself in an ethical manner. The researcher must also present the findings in an

objectively unbiased manner that is easily understandable. Most importantly, it

must be able to draw meaningful conclusion from the research results that may

be acted upon and increase the body of knowledge.

42

Chapter 4 Data Analysis and Interpretation 4.1 Introduction The different approaches to manage diversity in the workforce have been

discussed in Chapter two. These different approaches provide guidelines for

managers and other employees positioned as leaders to effectively manage

diversity. Various barriers to effective diversity management are also discussed

in order to establish awareness among leaders about certain challenges that can

be presented. The difference between manager’s actions and the employees’

perception of the effectiveness thereof are crucial in determining how effective

the diversity management measures are implemented.

In Chapter three, the author discusses the need for a questionnaire to be

administered in FAS. The diversity management theories and other related

concepts are used as the theoretical basis for the questionnaire. Managers and

supervisors are asked to respond to a questionnaire for the purpose of

determining what diversity management principles are applied. Employees are

also asked to complete a similar questionnaire to determine what their perception

is on the management of diversity within the FAS department. Both groups are

also asked to rate which barriers to effective diversity management affect their

environment the most. The data obtained from the questionnaires is presented,

analysed and interpreted following the structure of the questionnaire.

The questionnaire is administered to both normal employees and their managers

or supervisors. The goal is to compare how both groups experience diversity

management in practice.

43

4.2 Demographic Breakdown of Data Collected The following tables represent the responses received from the respondents at

FAS.

Table 4.1 Responses: Ethnicity

Groups Responses Received

Responses Planned

Response Rates

Employees Black 21 50 42% Employees White 15 50 30% Employees Indian 14 50 28% Employees Coloured

13 50 26%

Subtotal 63 200 32% Managers Designated

20 45 44%

Managers Non-Designated

20 20 100%

Subtotal 40 75 57% Total 103 270 38% The response rates from employees are disappointingly low. A reason for such a

low response rate is the fact that FAS was in the process of finalising their

disaster recovery plan. The researcher made the effort to continually visit FAS on

numerous occasions in order to raise the response rate from all groups. This

problem affected the class divisions among managers where the response rate

from non-white personnel was extremely low from the different ethnic groups. In

order to complete meaningful statistical analysis the researcher deemed it

necessary to regroup the managers. This is done by combining the Black, Indian

and Coloured ethnic groups into a new group called the designated group as

described by the Employment Equity Act of 1998. Similarly respondents from

white ethnicity were relabelled as the non-designated group. According to

Zikmund (2002;134) this response rate is adequate for statistical analysis

although extrapolation of data may become problematic.

44

Another important demographic distinction is gender. The following table

illustrates the response rate from these groups.

Table 4.2 Responses: Gender

Groups Responses Received

Responses Planned

Response Rates

Employees Female

40 100 40%

Employees Male 21 100 27% Managers Female 27 35 77% Managers Male 13 35 37% Total 101 270 37% Females responded at a much higher rate than males. However the researcher

still obtained sufficient data to perform meaningful statistical analysis. The

response rates differ when compared to Table 4.1. The reason for this is that 2

responses are missing from Table 4.2. According to Zikmund (2003:214) a poorly

designed questionnaire has e response rate of 15%. The above indicates that the

questionnaire has an acceptable response rate.

4.3 Responses by Questionnaire Sections

The various sections in the questionnaire correspond to different approaches and

principles within diversity management. As discussed in Chapter 3, the following

sections refer to the associated theories:

• Section 2: Diversity Management as discipline and associated principles;

• Section 3: Barriers to Diversity Management;

• Section 4: R. Roosevelt Thomas, Jr’s Generic Actions

• Section 5: Ann Morrison’s Specific Diversity Initiatives

The respondents are required to answers questions with possible answers

ranging from extremely negative to extremely positive. Managers’ and

45

employees’ answers are compared from a holistic perspective and by two

demographic aspects, namely gender and ethnicity.

As in the case of demographic data, meaningful analysis based on the originally

planned four ethnic groups is not possible. The researcher made the decision to

divide the ethnic groups as described by the Employment Equity Act of 1998.

White employees are included under the “Non-Designated” groups while Black,

Indian and Coloured employees are included under the “Designated” group.

4.3.1 Responses to Section 2 – Principles of Diversity Management Section B deals with the concepts within diversity management and what a

respondent understands diversity management to be. It also deals with how

affirmative action is perceived to contribute, or hinder, diversity management in

practice.

The results in this section are tested with an Alpha value which would indicate if

a high degree of reliability exists as it pertains to the dimensions being

measured. A high degree of reliability will be reflected by a high Alpha value.

According to Hair (2006:137), an Alpha value of greater than 0.7 indicates that a

high degree of reliability exists. This section exhibited a high degree of reliability.

Some questions however did not prove to be reliable because the scales were

reversed. After the scale was rearranged to reflect that higher response on the

scale did actually indicate a positive response the Alpha values yielded a value

above 0.7. The final Alpha value for this section is yielded at 0.71.

46

The following indicates the aggregate response to questions in Section 2:

0

50

100

150

200

StronglyDiagree

Disagree Neutral StronglyAgree

StronglyAgree

Figure 4.1 Section 2 Employee and Manager Responses

Manager ResponsesEmployee Responses

A mean of above three indicates a positive response whereas a mean of below

three indicates a negative response. This section deals with how employees and

leadership perceives diversity management. Leaders who have a positive

perception about diversity related issues will be more committed to diversity

management tasks. Leadership’s management task will be made easier should

employees have a positive perception about diversity management.

The mean for both leaders and employees are above 3. This would indicate a

positive response to the questions. This applies to all the demographic

subsections investigated by the researcher. According to Annexure B, the

highest proportion of respondents among employees and managers agreed with

the statements.

Table 4.3 Mean Comparison Section 2: Employees and Managers

Group Mean Managers 3.6 Employees 3.3 Employees tend to be less positive in their answer than managers. While both

groups perceive concepts in diversity management positively, employees are

less so than leadership. By conducting a T-Test the researcher can ascertain

whether a statistical significant difference exists between these two groups.

47

According to Hair (2006:16), if the T-test p value is above 0.05 then a significant

difference does not exist between the groups when using a 95% level of

confidence. For this group the P value was 0.021 which indicates a significant

difference.

The researcher further tested to see how attitudes and perceptions differ

between gender groups.

Table 4.4 Mean Comparison Section 2: Gender

Groups Male Female Managers 3.7 3.6 Employees 3.4 3.3 From this collected data one can observe that there is not a significant difference

in perception about diversity management in both the employee and manager

groups as it relates to men vs. women. A trend starts to establish itself in that

managers and employees still have differences in perception about the subject

matter. The T-test indicates that there is not a significant difference between

gender groups in either the employees or managers since the p value of 0.509

and 0.222 is above 0.05 (Annexure B).

The results regarding ethnicity comparison are as follows:

Table 4.5 Mean Comparison Section 2: Ethnicity

Groups Designated Non-Designated Managers 3.7 3.6 Employees 3.3 3.3 White employees and managers are grouped under the Non-Designated

distinction while all other ethnic groups are grouped under the designated group.

This distinction ensures that statistically relevant comparisons can be made.

48

There is not a meaningful difference observed between different ethnic groups as

to the way they feel about diversity management. However the previously

identified trend of managers being more positive than employees continues. The

t-test also indicates that there is no significant difference between gender groups

as the respective p values of 0.802 and 0.164 for managers and employees are

above 0.05 (Annexure B).

Over all, managers perceived the following dimensions particularly positively:

• Sufficient cultural diversity within FAS

• Equitably represented ethnic groups within FAS

• Positive impact of cultural and gender diversity on work performance

• Successful implementation of affirmative action within FAS

Employees’ perceptions differ, in that the highest proportion of respondents to

this question does not feel that affirmative action is successfully implemented

within FAS.

4.3.2 Responses to Section 3 – Barriers to Diversity Management In Section C respondents were asked to rate how strongly different barriers to

diversity management affects their role at FAS. The Alpha correlation for these

statements was also above the acceptance level of 0.7. The Alpha value is

0.894. This means that all the statements contained in this section assist in the

overall goal of the questionnaire of measuring diversity management. The

aggregate responses to questions in these sections are as follows:

49

0

50

100

150

No ImpactLittle

Impact

LittleImpact

Uncertain SomeImpact

MajorImpact

Figure 4.2 Section 3 Employee And Manager Responses


Clearly both groups feel that certain barriers have little impact while some

barriers have some impact on their day to day activities. Barriers that have the

most impact on managers are (Annexure C):

• Lack of open communication channels

• Fear of discrimination based on Gender and Ethnicity

• Resistance to Change

• Stereotypes of different ethnic and gender groups

• Difficulty in balancing career and private life issues

Employees experience the following barriers to diversity management as having

an impact on their working environment (Annexure C):


• Fears of discrimination based on ethnicity and gender

• Resistance to change

In this section a higher mean would indicate that barriers to diversity

management have an important impact on the activities in FAS. In this section

there would be no ideal mean as certain barriers affect different people in

different ways. These questions would merely serve to report how these barriers

affect managers and employees alike. These means are as follows:

50

Table 4.6 Mean Comparison Section 3: Employees and Managers

Group Mean Managers 3 Employees 3 If a respondent was uncertain about a proper response then they would indicate

a response of 3. When interpreting the mean the frequency distribution must be

analysed as well since the mean can be distorted by extreme values.

The t-test p values for managers and employees respectively are 0.775 which

indicates that a significant difference between them does not exist (annexure C).

The demographic distinctions actually reveal more interesting facts about barriers

to diversity management.


Groups Male Female Managers 2.7 3.1 Employees 3 3.1 There is a significant difference in perception among male and female managers

about what affects their ability to effectively manage diversity. Male managers

indicated that they do not feel that there are many factors that affect their

management ability while the females group’s responses indicated that they were

uncertain in this respect. The p values for managers and employees of 0.448 and

0.987 respectively indicate that there is no significant difference between gender

groups (Annexure C).

51


Groups Designated Non-Designated Managers 3.3 2.7 Employees 3.2 2.6

Designated managers and employees responded on the positive end of the scale

which indicates that they experience some impact from barriers to diversity

management. Non-designated managers and employees responded on the

negative end of the scale which indicates that they experience little impact from

barriers to diversity management. This indicates a difference in perception

between the two groups. Designated employees perceive a greater impact from

identified barriers to diversity management than non-designated employees.

The t-test p values of 0.447 and 0.212 for managers and employees in the

gender demographic distinction indicates that there is no difference of perception

(Annexure C).

4.3.3 Responses to Section 4 - R. Roosevelt Thomas, Jr’s Generic Actions The questions in this section attempts to uncover how FAS implements R.

Roosevelt Thomas, Jr’s Generic Action options. These options are discussed in

detail in Chapter 2. The organisation has the opportunity to follow a range of

options from ignoring diversity to totally accepting diversity. Employees and

managers are asked to rate statements that would help to determine how FAS

accepts or rejects diversity in the workplace.

The Alpha values for these questions were just below the accepted value of 0.7.

The Alpha yielded a value of 0.692 that borders on the acceptance value. Once

again questions that were on a reversed scaled were arranged in such a manner

that a response of 1 indicates a negative response and a response of 5 indicates

a very positive response. The final Alpha value yield for this section is 0.712. This

52

indicates that these questions are still reliable. The following graph illustrates

employees’ and managers’ aggregate responses to Section 4’s questions:

020406080

100120140

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Figure 4.3 Section 4 Manager and Employee Responses


When interpreting the mean, a higher value indicates that respondents perceive

that these generic actions are positively implemented in FAS. Managers and

employees’ responses were as follows.

The t-test p value of 0.064 indicates that there is not a statistical significant

difference between managers and employees (Annexure D). The trend however

continues to suggest that employees are proportionally less positive about the

implementation of diversity management than managers.

Table 4.9 Mean Comparison Section 4: Managers and Employees

Group Mean Managers 4.1 Employees 3.8 Once again we see that managers are more positive about the implementation of

Roosevelt’s generic actions than employees. Ideally these two mean should be

closer if managers are effective in applying generic actions options as they think

to be. Both groups however perceive that the positive generic action options are

implemented.

53

Managers perceive that FAS has an inclusive supportive environment regarding

diversity management (Annexure D). Employees feel valued in the FAS working

environment and as a result perceive that the positive generic action options, like

inclusion, are implemented.

Overall manager and employees perceive the dimensions in the questionnaire

positively but managers felt most positively about the following:

• Consideration of subordinates viewpoint, different from their own

• Communication ability with people different from themselves

Employees felt most positively about the following:

• Their viewpoints are considered by superiors

• Different cultures communicate effectively within FAS

• Communication ability with people different from themselves

This trend continues when the demographic of ethnicity and gender differences

are investigated.


Groups Male Female Managers 4.1 4.1 Employees 3.8 3.8 Table 4.11 Mean Comparison Section 4: Ethnicity

Groups Designated Non-Designated Managers 4.1 4.1 Employees 3.8 3.9 It is clear that the trend where managers regard their input as more positive than

what employees perceive these inputs continues. No meaningful difference is

identifiable between the different demographic groups. The t-test confirms that

54

there are no significant statistical differences between gender groups (0.66 and

0.266) as well as between ethnic groups (0.617 and 0.544) (Annexure D).

4.3.4 Responses to Section 5 - Ann Morrison’s Specific Diversity Initiatives In this section employees and managers are asked to rate statements that

pertain to Morrison’s diversity initiatives. As described in Chapter 2, these

initiatives are specific actions that leadership can implement in various sections

of the organisation to improve the management of diversity.

Managers feel that the following diversity actions are successfully implemented:

• Building relationships

• Fair evaluation by superiors on diversity management performance

• Personal support from superiors

Employees perceive these dimensions more positively than managers. The t-test

confirms that a difference in perception exists between managers and employees

with a p value of 0.009.

The Alpha values for some of these questions were below the accepted level of

0.7 because higher returned values denoted a negative response. When these

questions’ scales were reversed, the Alpha value raised above the accepted

value 0.829. This once again indicates that section 5 has a high degree of

reliability. Should it not be reliable it would mean that in FAS the perception is

that Morrison’s Diversity Initiatives do not effect diversity management. Managers

and employees responses are as follows:

55

0

50

100

150

StronglyDisagree

Neutral StronglyAgree

Figure 4.4 Section 4 Manager and Employee Responses


A mean greater than 3 would indicate that the respondents perceive the

implementation of these initiatives as positive. In this case it is clear that

manager and employees have a positive perception although employees are

once again slightly less positive than managers.

Table 4.12 Mean Comparison Section 5: Managers and Employees

Group Mean Managers 3.5 Employees 3.4 No significant statistical difference can be observed. We can however see that

the previously identified trend does continue in that managers perceive the

implementation of these actions in a more positive way than employees. The p

values from the t-test confirm this fact with values of 0.98 and 0.223 for

managers and employees respectively (Annexure E).

This trend is also observed in many of the demographic groups.


Groups Male Female Managers 3.5 3.5 Employees 3.3 3.3

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Males and female responses resulted in a similar mean in employee and

management groups regarding specific diversity initiatives implemented in FAS.

There is no significant difference between ethnic groups among managers as the

t-test confirms with a p value of 0.497. There is a significant difference of

perception between ethnic groups among employees however with a p value of

0.008 (Annexure E).


Groups Designated Non-Designated Managers 3.5 3.6 Employees 3.3 3.5 The same trend is again observed among ethnic groups in that non-designated

employees regard FAS’s implementation of Morrison’s initiatives. Non-

designated groups had an overall more positive perception about the

implementation of Morrison’s initiatives than designated groups.

4.4 Conclusion

The overriding trend in all the collected data is that leadership perceive their

efforts more positively than employees do. Although employees are not overly

negative, there is a statistically significant difference between these two groups’

perceptions.

There are very little differences between the perceptions of gender groups in

their respective employee groups. The trend is observed to carry through this

demographic distinction as well. Notably males in both groups do not regard the

identified barriers to diversity management as major obstacles while females

were unsure about how these barriers affect them in FAS. The over results

suggest than employees and managers alike do not know what affect their ability

to cope with diversity related issues.

57

The overall trend between managers and employees is also visible when the

ethnic breakdown is investigated. There are how very small differences between

how designated and non-designated employees perceive the issues of diversity

management. Non-designated employees and managers seemed to answer

more positively than their designated counterparts. Non-designated employees

also seemed to regard the identified barriers to diversity management as

unimportant in their ability to deal with diversity related issues. Designated

employees placed a slightly greater importance on these barriers.

Overall leadership seemed to regard their efforts as positive while employees

regarded these efforts as less successful, although not overly so. The lack of

understanding of the effect of barriers to effective diversity management might be

cause for concern.

58

Chapter 5 Conclusions and Recommendations 5.1 Introduction

As stated in Chapter 1 the purpose of this body of work is to provide leadership

with a guideline with how to manage workforce diversity effectively within the

FAS department. This work also aims to establish how diversity management is

perceived by employees and leaders, as well as how it is implemented within

FAS. The purpose of this chapter is to draw valid conclusions from the gathered

data and to make recommendations that can be implemented within this

particular banking department. Guidelines for the improvement of diversity

management will also be presented. Each section of the questionnaire revealed

different aspects of how diversity management is implemented within FAS and

will be discussed in detail respectively.

5.2 Conclusion The overall objective of this work is to create awareness of the influence of

diversity management in the creation of a healthy working environment

considering the manager’s role as a leader. The secondary objectives are:

• to identify various factors that influence effective diversity management

within Financial Asset Services.

• to identify certain trends as it pertains to certain demographical segments’

perception of diversity management within FAS.

• to propose recommendations that management and leaders can

implement based on the various influencing trends and factors in an

organisational context within FAS.

59

• to highlight the implications management must be aware of in order to

create a healthy working environment in terms of diversity management

within FAS.

The literature review also expands on certain models on how to manage diversity

referring in particular to Roosevelt and Morrison’s work as well as how these two

approaches can be integrated. The review also identified how certain factors can

act as barriers to the effective management of diversity management.

In order to achieve these objectives a questionnaire is implemented in FAS and

the results were analysed in Chapter four. The questionnaire attempts to uncover

perceptions among leaders and employees regarding the current implementation

of diversity management in their department. The questionnaire is divided into

sections that cover all the theoretical aspects discussed in Chapter two. The

results identified certain trends among managers and employees regarding two

demographical aspects.

The overall trend seems to suggest that managers have a more positive

perception than employees regarding the implementation and meaning of

diversity management in FAS. It did however come across that many managers

and employees have little familiarity regarding diversity management principles

and how certain factors influence the daily management of diversity. There were

some differences in the overall perceptions between ethic groups and, to a lesser

extent, between gender groups.

The following summarises the different dimensions contained in the separate

sections of the questionnaire.

60

5.2.1 Section 2: Principles of Diversity Management

Section 2 deals with general concepts in diversity management and how

managers and employees perceive this discipline. This section includes

questions about affirmative action and how positively or negatively they perceive

different types of diversity. Managers perceive diversity management much more

positively than employees. Employees however perceive these same dimensions

less positively as many disagreed with most of the statements in the

questionnaire. Non-designated groups, or Caucasians, were slightly more

negative than the designated, or non-Caucasians, groups. This trend is

especially true for managers. The gender groups follow the overall trend but

males perceive diversity related issues slightly more positively than females.

Managers for example felt extremely positively about the following factors:

• Sufficient cultural diversity within FAS

• Equitably represented ethnic groups within FAS

• Positive impact of cultural and gender diversity on work performance

• Successful implementation of affirmative action within FAS

Employees among all the different diversity groups feel that affirmative action is

not being successfully implemented within FAS. The deduction can be made

that this difference in perception is due to a lack of communication from

leadership. This is substantiated in the next section.

5.2.2 Section 3: Barriers to Diversity

Section 3 asks the respondents to consider certain factors that are identified in

chapter two as barriers to effective diversity management. From the collected

data it appears that managers have a more clear perception about how certain

factors influence the implementation of effective diversity management. This can

61

be concluded from the fact that very few respondents in this group responded

“uncertain” in the questionnaire.

The overall trend suggests that managers experience a higher impact from the

identified diversity management barriers than employees do. This trend is also

followed when the two gender and ethnic groups are investigated. A high

proportion of respondents in the employee group responded as uncertain. From

this, one can make the conclusion that employees are not clear on how barriers

to diversity management affect them. Managers are aware of these barriers and

regard them as having some impact on their management activities. Managers

indicated the following barriers to diversity as having the greatest impact in their

working environment:


• Fear of discrimination based on Gender and Ethnicity

• Resistance to Change

• Stereotypes of different ethnic and gender groups

• Difficulty in balancing career and private life issues

These responses include leadership’s observation of their subordinates.

Employees list the following as having the greatest impact in the workplace:


• Fears of discrimination based on ethnicity and gender

• Resistance to change

Managers perceive more barriers to diversity management than employees. One

can presume that is because they observe their subordinates’ performance in the

working environment. Managers observe that employees adhere to certain

stereotypes regarding gender and ethnic groups. This particular barrier to

diversity prevents these different groups from interacting effectively. This is

supported by the perception of leaders and employees alike, that there is a lack

of open communication channels. Both employees and managers exhibit a fear

62

of discrimination based on gender and ethnic differences. Employees and

managers also observe resistance to change as having an impact on effective

diversity management. When an organisation like Standard Bank needs to

implement transformational change as required by the Employment Equity act,

resistance to such changes will prevent the organisation from achieving its

strategic goals.

Managers add that there is a difficulty in balancing career and private life issues.

Managers have more roles and responsibilities towards their place of

employment. These extra responsibilities consume more personal time as

managers are expected to make their careers a higher priority than employees

would. More employees from designated and the female gender groups are

elevated to leadership levels because of employment equity directives. These

new managers need to find a balance in their career and private lives. Currently

they are experiencing pressure from both these issues.

5.2.3 Section 4: Roosevelt’s Generic Action Options

Section 4 asks managers and employees to rate statements with regard to

Roosevelt’s diversity actions. Roosevelt’s generic actions attempt to describe

how an organisation treats the issue of diversity management.

The list of possible generic actions range from very negative responses to very

positive responses. Negative responses include denial of the existence of

diversity issues. Positive responses include the total acceptance of diversity and

the realization that diversity contributes to the working environment. The overall

responses to this section suggest that all groups feel that Standard Bank’s FAS

department has a positive approach to diversity management. This indicates how

the organisation treats the issues of diversity management.

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Managers and employees are in agreement that these actions are implemented

effectively. This means that the workforce feels valued. The number of available

communication channels however is not adequate. The evidence supports this

since the overall perceptions between managers and employees differ.

Employees perceive these actions slightly less positively than employees. This

trend is also followed by the ethnic and gender demographic distinctions with

little or no deviation from the trend. Non-designated employees however are

slightly more positive than their designated counterparts.

The different groups felt that FAS’ actions are particularly positive in the following

areas:

• Consideration of subordinates viewpoint, different from leadership’s own

• Different cultures communicate effectively within FAS

• Communication ability with people different from themselves.

This suggests that integration of culturally and gender diverse groups are

priorities for FAS. This also has the implication that FAS regards diversity as

essential for other reasons than legal compliance to the Employment Equity Act.

These reasons are:

• Diversity adds to the value of the company

• Synergy in diversity results in more productivity and efficiency.

5.2.4 Section 5: Morrison’s Specific Diversity Initiatives

Section 5 asks all groups to rate statements that related to Morrison’s Diversity

Initiatives. These diversity initiatives are specific tasks or activities that

management can implement in order to effectively manage diversity.

All groups responded with very positive answers, following the overall trend.

Managers and employees agree that Morrison’s initiatives are effectively

implemented although there are some groups who have an overall slightly

64

negative perception about the dimensions in this section. These groups include

the designated sub-groups in the manager and employee groups. Male and

female employees’ responses follow the overall trend of a manager being more

positive than employees. Non-designated employees definitely have a more

positive perception than their designated counterparts.

Overall leadership and employees perceived these particular dimensions

positively:

• Building relationships

• Fair evaluation by superiors on diversity management performance

• Personal support from superiors

5.3 Recommendations

Based on the responses obtained from the questionnaire the researcher can

identify certain aspects where deficiencies occur. These aspects are:

• the marked difference in perception between managers and employees

• the apparent lack of open communication channels between leadership

and employees

• some managers’ inability to effectively manage diversity because of a lack

of knowledge

• some employees’ lack of knowledge about the diversity management

process followed in FAS.

The overall trend that emerges is that managers are more positive about diversity

and the implementation of diversity management than employees. There is a

significant difference in perception between these two groups. This may be

cause for concern and is expanded on in the next section.

While most employees and managers are positive about diversity and the

implementation of diversity management principles, some areas of the

65

questionnaire raise some concerns. Section 3, dealing with barriers to diversity

management, in particular is identified as such an area. Section 2, 4 and 5 also

raises concern but to a lesser extent as the differences between manager and

employees are not significant.

The responses in Section 2, 4 and 5 indicate that employees and managers

communicate well within their isolated groups. Most respondents feel that they

communicate well with people different from themselves. Employees also feel

that their viewpoints are taken into consideration by their superiors. They do not

however perceive that affirmative action is being implemented successfully. This

same group also feels that lack of open communication channels to superiors is

a barrier to diversity management. One may deduce that the lack of open

communication channels between employees and leadership is the underlying

reason for the difference in perception between these two groups.

According to Kreitner (2001:497) the organisation can utilise a hierarchical or

grapevine communications pattern while being aware of distortion of

communication. Hierarchical communication occurs when managers pass

messages on to subordinates along formal communication channels and is most

appropriate for vertical communication. Informal channels like the “grapevine”

allows for mostly horizontal communication to take place but has little or no

credibility. In this case the difference in perception between managers and

employees may indicate a lack of trust. This may cause the message of diversity

management from managers to employees to be distorted. Employees must be

allowed to voice their opinions and concerns openly without fearing retribution.

For this reason, employees need to be trained in interpersonal communication in

the workplace. Employees, but managers especially, must attain communication

competence (Kreitner, 2003:485). This will give employees and managers the

ability to effectively and appropriately use communication behaviours. These

behaviours are:

66

• Cross-cultural awareness: Employees and managers must be made

aware that different cultures communicate in different ways. By achieving

this misunderstandings may be prevented. When people from different

cultures understand each other they communicate effectively. When

people from different cultures communicate effectively, they work

efficiently in a team environment.

• Assertiveness: Being expressive and self-enhancing without taking

advantage of others. Managers can open up potential communication

channels by being authoritative but not ignoring subordinates. Employees

must be assertive enough to voice their fears and concerns.

• Aggression: Being expressive and self-enhancing by taking unfair

advantage of others. Managers must be very aware of this behaviour

since communication channels can be eliminated by being aggressive.

Aggressiveness may also signal to employees that retribution can follow

the voicing of different opinions.

• Non-Assertiveness: Exhibiting self-denying behaviour. This may be the

result of a fear of retribution propagated by over aggressive

communication behaviours.

For this reason, leaders must make a greater effort to keep employees informed

about current diversity initiatives and programmes as well as educate current and

new employees on the subject of diversity and related concepts. Employees

need to understand why diversity management is implemented and what FAS’

motivation is for implementing diversity management. Employees need to be

informed that FAS does not implement diversity management and employment

equity merely because of legal requirements. Employees must be informed that

FAS believes that diversity contributes to FAS’ success. FAS may use all the

current methods of corporate communications to achieve this goal. These may

include:

• internal e-mail

• diversity awareness workshop information sessions

67

• the annual corporate road show

• heightening the profile of FAS’ transformation team.

FAS may also implement diversity awareness programmes (Grobler, 2002;50).

Theses programmes aim to educate employees and leadership in diversity

dimensions in order to change attitudes and perceptions. Top leadership should

undergo this training first to set an example for all lower tier employee levels.

Managers and employees should follow.

Diversity awareness training consists of the following:

• Value clarification: The set of organisational values, i.e. respect toward all

colleagues, should be reinforced;

• Perceptual differences: This dimension will uncover imprecise

communication practices;

• Problem-solving case studies: Participants are given a partial description

of a job applicant and are asked to complete the profile. This might help to

uncover certain biases or stereotypes that may exist among certain

groups;

• Exploring cultural assumptions: The previously identified stereotypes and

biases are explored openly, honestly and respectfully in order to inform

participants to the contrary;

• Personalising the experience: Participants are encourages to explore their

own uniqueness and that infinite differences exist in a seemingly

heterogeneous group.

Managers have the unique perception among other respondents in that they

regard the difficulty in balancing careers and private lives. As previously stated,

one can assume that leaders have this perception because they have added

responsibilities and that their careers has become a higher priority. Managers

must have access support structures that may assist them in complying with

organisational and personal responsibilities.

68

Grobler is of the opinion that mentoring is a proven measure to help new or

young managers to cope with new responsibilities (2002; 324). A mentor is an

experienced manager who provides guidance to junior managers and facilitates

his or her personal development. The benefits of mentoring include:

• The mentor may protect its charge from controversial situations and

provide coaching by suggesting strategies in these situations;

• The mentor may also provide counselling about work and personal

problems;

• There is better job performance and longer service with the organisation

from managers who are mentored as they develop more skills and self-

confidence.

Change management principles may also need to be applied in order for diversity

issues to become a priority for employees and managers. According to John

Kotter, leadership must proceed with the following steps in order to lead

organisational change (Kreitner, 2003:668):

• Establish a sense of urgency: FAS leadership must provide a compelling

reason to accept diversity management principles. These reasons may

include the need to comply with legislative requirements as well realising

that diversity can enhance productivity.

• Creating a guiding coalition: People with influence and power need to lead

this change. Standard Corporate and Investment Bank may specifically

appoint individual managers and supervisors in FAS to initiate this

change.

• Develop a vision and strategy: A strategic plan with the goal of effective

integration of diversity into everyday day business needs to be formulated.

• The change vision must be communicated effectively: This goal and vision

must be consistently communicated in clear terms to all affected,

especially the employees since they are most affected.

• Empower broad-based action: The barriers to diversity management

among employees and managers must be addressed and eliminated. This

69

will prompt initiative in creatively dealing with diversity issues by

leadership.

• Generate short-term wins: By setting small achievable goals, progress will

become more visible. People must be rewarded for helping to achieve

these small goals. This will heighten the sense of urgency that must

surround diversity management.

• Consolidate change and produce more change: The change process must

not be allowed to lose momentum. The coalition for change must build on

short-term wins by getting employees involved so they can carry change

forward.

• Anchor new approaches in the culture: Positive results must reinforce the

organisational culture. This will enable future managers and new

employees to effectively deal with diversity from first contact with FAS.

5.4 Summary

In summary, leadership in FAS must close the gap in perceptions between them

and their employees by opening up the channels of communication and by

implementing diversity awareness training. Managers must also undergo some

form of mentorship under a senior manager and specific diversity management

training in order to effectively deal with diversity related issues.

Standard Bank’s FAS implements diversity management principles in such a way

that managers and employees alike perceive diversity as a positive change in the

working environment. Given the abovementioned guidelines, FAS can implement

diversity management principles in such a way that it creates an even more

positive impact on its daily operations while achieving organisational goals.

70

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73

Annexure A

Cover Letter and Questionnaires Financial Asset Services: Corporate Investment Bank

Dear FAS employee,

You have been selected to participate in a research project aimed at determining

how diversity is managed within the FAS business unit. You are in no way

compelled to complete this questionnaire but your assistance will be greatly

appreciated and will be of great benefit to FAS. All information supplied by you

will be treated confidentially and will in no way be linked to you personally.

This questionnaire is used for the completion of a research project at the

University of Johannesburg.

It should take you no more than 10 minutes to complete this questionnaire. Once

you have completed all questions please place the questionnaire on top of your

credenza where it will be collected by Wikus Erasmus, Sarisha Sankar

throughout the day until 2:00 pm. Please use a pen to indicate your response.

It would greatly assist me if you would provide your frank and honest opinion.

Thank you very much for your participation

Kind Regards,

Wikus Erasmus Theuns Oosthuizen

Researcher Study Leader

January 2007

74

Financial Asset Services: CIB – Managers How to answer: Please indicate by means of a cross (X) in the applicable box your response to the following questions. Choose only one answer to each question.

Section 1 (To be completed by ALL)

To facilitate meaningful and constructive comparisons of results, kindly provide

the following demographic information:

1. Ethnicity Indian/Asian Black Coloured White

2. Gender Male Female

3. Number of Subordinates <5 5-9 10-15 16-20 20<

4. Number of years in current management position: <1 1-3 4-6 7-9 10<

Blue Purple Green Yellow Red

Your favourite colour is:

If your answer is Purple please mark as above.

75

Section 2 - Diversity and Diversity Management

State how strongly you agree or disagree with the following statements:

5. FAS employees are a culturally diverse group. Strongly Disagree Disagree Neutral Agree Strongly Agree

6. There is sufficient cultural diversity within my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

7. Different Ethnic groups are equitably represented within my group. Strongly Disagree Disagree Neutral Agree Strongly Agree

8. The existence of cultural diversity positively impacts my performance. Strongly Disagree Disagree Neutral Agree Strongly Agree

9. The existence of gender diversity positively impacts my performance Strongly Disagree Disagree Neutral Agree Strongly Agree

10. The existence of cultural diversity complicates my job function. Strongly Disagree Disagree Neutral Agree Strongly Agree

11. The existence of gender diversity complicates my job function. Strongly Disagree Disagree Neutral Agree Strongly Agree

12. There is organisational support for me when I encounter diversity related

problems. Strongly Disagree Disagree Neutral Agree Strongly Agree

13. Affirmative Action contributes to the success of FAS. Strongly Disagree Disagree Neutral Agree Strongly Agree

76

14. Affirmative action has been successfully implemented in FAS. Strongly Disagree Disagree Neutral Agree Strongly Agree

Section 3 Barriers to diversity Management Please indicate to what extent the following aspects represent barriers to the

effective management of diversity:

15. Stereotypes about different ethnic groups. No Impact Little Impact Uncertain Some Impact Major Impact

16. Stereotypes about different gender groups. No Impact Little Impact Uncertain Some Impact Major Impact

17. Unsupportive work environment for subordinates culturally different from

management No Impact Little Impact Uncertain Some Impact Major Impact

18. Lack of open communication channels No Impact Little Impact Uncertain Some Impact Major Impact

19. My subordinates’ inability to socially integrate with different ethnic groups: No Impact Little Impact Uncertain Some Impact Major Impact

20. Difficulty in balancing career and private life issues No Impact Little Impact Uncertain Some Impact Major Impact

21. Fears of discrimination based on ethnicity: No Impact Little Impact Uncertain Some Impact Major Impact

77

22. Fears of discrimination based on gender: No Impact Little Impact Uncertain Some Impact Major Impact

23. The need to include the management of diversity in performance appraisals No Impact Little Impact Uncertain Some Impact Major Impact

24. Resistance to change No Impact Little Impact Uncertain Some Impact Major Impact

Section 4 - Diversity Actions


25. I help to reinforce the organisational culture within my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

26. I consider viewpoints of my subordinates even though they differ from my ownStrongly Disagree Disagree Neutral Agree Strongly Agree

27. The different cultures within my division communicate effectively. Strongly Disagree Disagree Neutral Agree Strongly Agree

28. I feel valued in a diverse workforce. Strongly Disagree Disagree Neutral Agree Strongly Agree

29. I communicate well with people from different ethnic groups. Strongly Disagree Disagree Neutral Agree Strongly Agree

78

Section 5 - Diversity Initiatives


30. I personally intervene in diversity related matters. Strongly Disagree Disagree Neutral Agree Strongly Agree

31. I facilitate the establishment of good relationships between different ethnic

groups. Strongly Disagree Disagree Neutral Agree Strongly Agree

32. Conflict due to cultural differences arises in my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

33. I take employment equity issues within FAS into account when recommending

an appointment to my superiors. Strongly Disagree Disagree Neutral Agree Strongly Agree

34. I am fairly evaluated by my superiors on how effectively I deal with diversity

within my group. Strongly Disagree Disagree Neutral Agree Strongly Agree

35. The evaluation criteria for the management of diversity is sufficient. Strongly Disagree Disagree Neutral Agree Strongly Agree

36. I encourage my subordinates to take part in diversity workshops. Strongly Disagree Disagree Neutral Agree Strongly Agree

37. I get personal support from my superiors when I encounter diversity related


79

Financial Asset Services: CIB - Employees How to answer: Please indicate by means of a cross (X) in the applicable box your response to the following questions. Choose only one answer to each question.

Section 1 (To be completed by ALL)

To facilitate meaningful and constructive comparisons of results, kindly provide the

following demographic information:

1. Ethnicity Indian Black Coloured White

2. Gender Male Female

3. Number of years at FAS. <1 1-3 4-6 7-9 10<

Section 2 - Diversity and Diversity Management State how strongly you agree or disagree with the following statements:

Blue Purple Green Yellow Red

Your favourite colour is:

If your answer is Purple please mark as above.

80

4. FAS employees are a diverse group. Strongly Disagree Disagree Neutral Agree Strongly Agree

(5)

5. My superiors believe diversity is an important issue. Strongly Disagree Disagree Neutral Agree Strongly Agree

6. There is sufficient cultural diversity within my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

7. Different ethnic groups are equitably represented within my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

8. The existence of cultural diversity positively impacts my performance. Strongly Disagree Disagree Neutral Agree Strongly Agree

9. The existence of gender diversity positively impacts my performance Strongly Disagree Disagree Neutral Agree Strongly Agree

10. The existence of cultural and gender differences complicates my job function. Strongly Disagree Disagree Neutral Agree Strongly Agree

11. The existence of gender diversity complicates my job function. Strongly Disagree Disagree Neutral Agree Strongly Agree

12. Affirmative Action contributes to the success of my division. Strongly Disagree Disagree Neutral Agree Strongly Agree

(13)

13. Affirmative Action contributes to the success of FAS. Strongly Disagree Disagree Neutral Agree Strongly Agree

(14)

81

Section 3 Barriers to diversity Management Please indicate to what extent the following aspects represent barriers to the

effective management of diversity:

14. Stereotypes about different cultures: No Impact Little Impact Uncertain Some Impact Major Impact

(15)

15. Unsupportive work environment for employees that are culturally different from

management: No Impact Little Impact Uncertain Some Impact Major Impact

(17)

16. Lack of open communication channels: No Impact Little Impact Uncertain Some Impact Major Impact

(18)

17. My co-workers’ inability to socially integrate with different ethnic groups: No Impact Little Impact Uncertain Some Impact Major Impact

(19)

18. Difficulty in balancing career and private life issues: No Impact Little Impact Uncertain Some Impact Major Impact

(20)

19. Fears of discrimination based on ethnicity: No Impact Little Impact Uncertain Some Impact Major Impact

(21)

20. Fears of discrimination based on gender: No Impact Little Impact Uncertain Some Impact Major Impact

(22)

21. Resistance to change No Impact Little Impact Uncertain Some Impact Major Impact

(24)

82

Section 4 - Diversity Actions


22. My superior considers my viewpoints even though they differ from his/her own.Strongly Disagree Disagree Neutral Agree Strongly Agree

(26)

23. The different cultures within my division communicate effectively. Strongly Disagree Disagree Neutral Agree Strongly Agree

(27)

24. I feel valued in a diverse workforce. Strongly Disagree Disagree Neutral Agree Strongly Agree

(28)

25. I communicate well with people of different ethnic groups. Strongly Disagree Disagree Neutral Agree Strongly Agree

(29)

Section 5 - Diversity Initiatives


26. My manager personally intervenes in diversity related matters. Strongly Disagree Disagree Neutral Agree Strongly Agree

(30)

27. My manager facilitates the establishment of good relationships between

ethnically diverse groups. Strongly Disagree Disagree Neutral Agree Strongly Agree

(31)

83

28. Conflict due to cultural differences arises in my division Strongly Disagree Disagree Neutral Agree Strongly Agree

(32)

29. My manager takes employment equity issues within FAS into account when

making an appointment recommendation to my superiors. Strongly Disagree Disagree Neutral Agree Strongly Agree

(33)

30. My manager encourages me to take part in diversity workshops. Strongly Disagree Disagree Neutral Agree Strongly Agree

(36)

31. I get personal support from my manager when I encounter diversity related


(37)

84

Annexure B Questionnaire Results Section 2 Table B1 Manager’s Responses Managers Strongly

Disagree Disagree Neutral Agree Strongly Agree

There is sufficient cultural diversity within my division

0 3 1 25 11

Different ethnic groups are equitably represented within my group

2 9 6 16 7

The existence of cultural diversity positively impacts my performance

2 4 14 16 4

The existence of gender diversity positively impacts my performance

1 2 14 17 4

The existence of gender diversity complicates my job function

8 22 7 3 0

Affirmative Action contributes to the success of FAS

2 5 15 14 4

FAS employees are a culturally diverse group

0 0 1 18 21

The existence of cultural diversity complicates my job function

8 18 12 2 0

There is organisational support for me when I encounter diversity related problems

0 7 15 18 0

Affirmative Action has been successfully implemented in FAS

2 6 9 18 5

85

Table B2 Employees Responses Employees Strongly


There is sufficient cultural diversity in my division

2 5 8 35 12

Different ethnic groups are equitably represented within my group

2 12 16 25 8

The existence of cultural diversity positively impacts my performance

5 13 18 23 2

The existence of gender diversity positively impacts my performance

6 16 18 21 1

The existence of gender diversity complicates my job function

13 36 7 2 2

Affirmative Action contributes to the success of FAS

8 19 19 11 5

FAS employees are a diverse group

0 6 6 30 19

My superiors believe diversity is an important issue

1 8 14 27 11

The existence of cultural diversity complicates my job function

10 39 7 4 1

Affirmative Action contributes to the success of my division

6 25 16 14 2

Table B3 Means and Level of Significance per group and Cronbach Alpha Group Mean Level of Significance Cronbach Alpha

Designated 3.6625 Managers Non-Designated 3.6125

0.802

Designated 3.3370 Employees Non-Designated 3.2833

0.164

Male 3.3671 Managers Female 3.6204

0.509

Male 3.4125 Employees Female 3.2692

0.222

Managers 3.6375 Total Employees 3.3238

0.781

0.71

86

Annexure C Questionnaire Results Section 3 Table C1 Manager’s Responses Managers No Impact Little Impact Uncertain Some Impact Major Impact Unsupportive work environment for employee culturally different from management

9 9 10 8 4

Lack of open communication channels

3 10 4 13 10

Subordinate’s inability to socially integrate with different ethnic groups

10 11 6 10 3

Difficulty in balancing career and private life issues

6 10 1 15 8

Fears of discrimination based on ethnicity

6 11 4 16 3

Fears of discrimination based on gender

12 8 2 17 1

Resistance to change

5 9 3 17 6

Stereotypes about different ethnic groups

3 7 7 17 6

Stereotypes about different gender groups

8 10 1 17 3

The need to include the management of diversity in performance appraisals

8 11 10 8 3

87

Table C2 Employees Responses Employees No Impact Little Impact Uncertain Some Impact Major Impact Unsupportive work environment for employee culturally different from management

13 8 21 12 8

Lack of open communication channels

6 12 10 15 20

My inability to socially integrate with different ethnic groups

14 14 11 14 10

Difficulty in balancing career and private life issues

17 10 5 16 14

Fears of discrimination based on ethnicity

15 8 10 19 11

Fears of discrimination based on gender

22 7 8 19 7

Resistance to change

12 6 6 22 17

Stereotypes about different ethnic groups

6 15 15 15 9

Table C3 Means and Level of Significance per group and Cronbach Alpha Group Mean Level of Significance Cronbach Alpha


0.447


0.212


0.448


0.987


0.775

0.894

88

Annexure D Questionnaire Results Section 4 Table D1 Manager’s Responses Managers Strongly


I consider viewpoints of my subordinates even though they differ from my own

0 0 2 26 12

The different cultures within my group communicate effectively

0 3 4 27 6

I feel valued in a diverse workforce

0 2 8 22 8

I communicate well with people form different ethnic groups

0 0 1 21 18

I help to reinforce the organisational culture within my group

0 0 4 29 7

Table D2 Employees Responses Employees Strongly


My viewpoints are considered even though they differ from management’s

6 7 7 33 10

The different cultures within my group communicates effectively

1 7 8 34 13

I feel valued in a diverse workforce

2 7 14 30 9

I communicate well with people from different ethnic groups

0 0 2 36 25

89

Table D3 Means and Level of Significance per group and Cronbach Alpha Group Mean Level of Significance Cronbach Alpha


0.617


0.544


0.066


0.210


0.064

0.712

90

Annexure E Questionnaire Results Section 4 Table E1 Manager’s Responses Managers Strongly


I personally intervene in diversity related matters

1 9 14 15 1

I facilitate the establishment of good relationships between different ethnic groups

0 4 11 21 4

Conflict due to cultural differences arises in my division

9 16 6 8 1

I take employment equity issues within FAS into account when recommending an appointment to my superiors

0 0 15 20 5

I encourage my subordinates to take part in diversity workshops

0 7 12 14 7

I get personal support from my superiors when I encounter diversity related problems

0 1 16 18 5

I am fairly evaluated by my superiors on how effectively I deal with diversity within my group

0 2 13 20 5

The evaluation criteria for the management of diversity is sufficient

3 5 13 17 2

91

Table E2 Employees Responses Employees Strongly


My superior intervenes in diversity related matters

5 10 25 16 6

My superiors facilitate the establishment of good relationships between ethnic groups

3 6 9 36 9

Conflict due to cultural differences arises in my division

16 30 8 7 1

My superior take employment equity issues within FAS into account when recommending an appointment to my superiors

5 8 22 21 6

My superior encourages our group to take part in diversity workshops

5 7 17 26 7

I get personal support from my superiors when I encounter diversity related problems

3 10 21 21 7

Table E3 Means and Level of Significance per group and Cronbach Alpha Group Mean Level of Significance Cronbach Alpha


0.497


0.008


0.098


0.223


0.009

0.779

diversity material

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