E-ISSN:2693-1478

Research Article

Diversity and Sustainability

International Journal of Economics Business and Human Behaviour

2021 Volume 2 Number 1 Jan-March
Publisherwww.openvectors.com

Diversity Management as an Effective Tool to Support Sustainable Management in Public Sector Organizations - A Case Study at the Wasit Spinning and Knitting Factory

Muhaisen K.1*, Jasim N.2, Almusawi A.3
DOI: 10.5281/zenodo.4650298

1* Kamal Alwan Muhaisen, Research Scholar, College of Economics and Administration, Wasit University, Wasit, Kut, Iraq.

2 Nagham Ali Jasim, Assistant Professor, College of Economics and Administration, Al-Mustansiriya University, Waziriya, Baghdad, Iraq.

3 Ali Saad Alwan Almusawi, Research Scholar, Economics and Administration, Alkut University College, Wasit, Kut, Iraq.

During the past years, important developments have taken place, that have covered various aspects of life through their impact on the work nature of organizations and institutions in various forms. We have become citizens in a new world which is the world of technological revolution, globalization, and the emergence of modern means of communication. This new reality requires a new type of human resource as an inevitable consequence of the rapid developments in the surrounding environment. The most noticeable aspect of the new world is the diverse workforce. Therefore, diversity management has become important for public institutions and business organizations for several factors, including enhancing the ability of organizations to attract and develop human resources and to retain qualified ones of them. So, organizations must create an organisational culture based on diversity. The organization’s sustainability strategy through the optimal utilization of available resources and capabilities, whether human or material is the second element in this paper . This research consists of a theoretical framework about diversity management and management sustainability and their dimensions; the second part is dedicated to the empirical part which is the checklist that is used to evaluate the actual situation of diversity management and the sustainability of management. The results show that the diversity management application and documentation level is 64%, which means that there is a gap of 36%. At the same time, the sustainable management application and documentation level were at 62.8%, so the gap is 37.2%.   According to those gaps, the study recommends that new ideas must be generated and applied in this factory to reach sustainability effectively.

Keywords: Diversity Management, Sustainable Management, Multiculturalism, Sustainability.

Corresponding Author How to Cite this Article To Browse
Kamal Alwan Muhaisen, Research Scholar, College of Economics and Administration, Wasit University, Wasit, Kut, Iraq.
Email: 		Kamal Alwan Muhaisen, Nagham Ali Jasim, Ali Saad Alwan Almusawi, Diversity Management as an Effective Tool to Support Sustainable Management in Public Sector Organizations - A Case Study at the Wasit Spinning and Knitting Factory. IJEBHB. 2021;2(1):43-.
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Manuscript Received Review Round 1 Review Round 2 Review Round 3 Accepted
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© 2021by Kamal Alwan Muhaisen, Nagham Ali Jasim, Ali Saad Alwan Almusawiand Published by Open Vectors. This is an Open Access article licensed under a Creative Commons Attribution 4.0 International License https://creativecommons.org/licenses/by/4.0/ unported [CC BY 4.0].

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Introduction

Changes in the economic, political, and technological environment have taken place dramatically, on both domestically and internationally levels. It has become one of the most important challenges that face the current developments in the economic sectors. With the emergence of globalization, the knowledge economy and demographic changes organizations have to change their strategies to deal with this new reality. All this has clear implications for human resource management. Globalization support bringing a diversity of the workforce to daily life as an important issue in human resources departments is gradually spreading to other areas. Also, sustainability issues are considered one of the most important challenges around which the future of the people of the world revolves, because it contains dimensions related to the human future that we cannot look at individually. It is part of a large system that has been integrated throughout the past decades. This research deal with the concepts of diversity management and its dimensions and considered it as an effective tool for business sustainability which is the future goal that all organizations try to achieve and correct the imbalance caused by the unjust use and exploitation of resources since the industrial revolution.

Research Methodology

Research Statement

The economic, political, and social change that occurred in Iraq, after 2003, accompanied by a major change in the external environment. Also, we face the challenges of the emergence of the phenomenon of globalization, the expansion of markets, the diversity of services, as well as the diversity of human resources produced by the new market produced and the diverse and rapid innovations shaped. This indicates a significant change in job. Therefore, the research statement can be formulated as (What is the ability of diversity management in supporting the organization’s capacity to diagnose the reality of human resource management and the extent to which it is qualified to attract, develop, and to empower the workforce in the light of the new challenges represented by the high

competition in the market and the change in the structure of the resources with sustainability and capacity to formulate effective strategies that help the organization in the optimal use of its resources).

Research Significance

The importance of the research comes from the fact that the researchers deal with a vital topic in the world of management, which is managing diversity in light of the large impacts generated by environmental factors such as globalization, technology and modern tools of communication, and the impact of all these factors on human resources in business organizations. Therefore, the value of this study is determined through addressing diversity management and its participation in supporting business organizations in making this diversity a real strength for future performance and not for weakness. It will help in paying more attention to improve the quality of work and help workers to achieve this quality considering it as a social, economic, and moral responsibility that drive to better performance and more profits.

Research Objectives

  1. Reviewing the importance of diversity management for business organizations and making it a part of sustainable management.
  2. Enhancing the organizations' ability to attract and develop human resources and to retain qualified and competent ones.
  3. Helping organizations to build an organizational culture based on diversity.
  4. Developing strategies for the sustainability of the organization through optimal utilization of resources, whether human or material.

Research Style and its Limitations

The researchers used the theoretical descriptive method by relying on the sources like books and periodicals to explore diversity management as an effective tool for sustainability management. Also, researchers inspired their ideas regarding Iraqi business organizations by using the checklist


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to show the extent of the diversity management impact as an effective tool in the public sector organization (a case study of the Spinning and Knitting Plant in Wasit Governance), in addition to that the researchers did field visits to this factory and discussed some opinions with the department heads there. As for the research procedures, the checklist was used, filled in through the field visits in the different areas and departments of the organization in question, and the data was documented and completely archived.

Theoretical Framework

Diversity Management Concept

It is a fact that diversity is a social reality in modern western societies (mainly due to globalization and migration), a reality that is inevitably reflected in the workforce, thus forming a modern organizational phenomenon. Although the definition of diversity is still a subject of discussion, as the term carries multiple, overlapping and often conflicting meanings, it is necessary to define the framework of our current study so that diversity can be defined as the collective amount of differences between members within a social unit, as it was known(Cox, 1991:45), Other scholar defined diversity it as the difference in social and cultural identities between people together in a specific business or marketing environment)( O’Reily,1998:  77). Another explanation comes from Harrison stating that diversity is the degree of heterogeneity between team members on certain demographic dimensions (Harrison, et al, 2006: 191-219).

Diversity management was defined by Cox as a variety of management issues and activities related to hiring and effective utilization of personnel from different cultural backgrounds( Cox, 1991:45).  Many theorists distinguish between the more prominent or visible dimensions of diversity (which are more obvious to other individuals), such as age, gender, and ethnic origin, and the most accurate dimensions of diversity, which are not directly distinguished by others, such as educational level, financial status, social class, religion, sexual orientation, etc. (Alcázar, et al, 2013: 39-49). So, diversity is a set of visible and invisible features that

characterize individuals including workers (Bodzhansky, 1979: 24). The features that can be identified immediately are sex, age and skin colour. However, it does not cover all the potential differences among employees. In the diversity wheel model developed by Loden, a diversity management expert, there are two types of diversity dimensions: the primary dimensions (primary dimensions) and complementary dimensions (secondary dimensions), represented in Figure (1)

Figure 1: Diversity Dimensions(Insert Here)

Figure 1 indicates that diversity has many dimensions. These may interfere to produce unique combinations of the human personality traits, consisting of both differences and similarities. Dimensions interact with and affect each other, and appear or be presented differently in different fields, environments, and circumstances, making analysis and management more complex. For example, race perhaps is more dominant than age in a particular social situation, but it is less dominant than education in the context of work. Hence, the location and dominance of each dimension are not static but dynamic, which makes the concept of diversity more complex. In addition, the secondary dimensions are more flexible, and many of them will change over time. Diversity phenomenon is not simple to be established as a program in any organization, it is neither easy to understand nor easy to manage. When using socio-demographic features as independent variables for the operation of diversity, most studies have considered diversity a specific, fixed individual or group essence so the researchers propose will redefine diversity as "the overall collective mix of all human differences and similarities along any given dimension".

Diversity Management Dimensions

Age: always, there are at least three or four generations working in any given organization. That is, people who have retired and remain in the workforce for a longer period and therefore are old enough to be seen as grandparents, i.e. those between the ages of 60-80 years, and parents i.e. between 35-50 and young adults, i.e. between 24-34, each group of these


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people have different values, experiences, worldviews, and strengths in the modern workplace.

Religion: It is a set of beliefs. Religion is important to most people living on earth. It has a major impact on the lives of millions of people, and it is impacting the business practices regarding clothing, food, and personal behaviour. Religion can also be a source of moral, social, and human education, with associated individuals and institutional implications (Schermerhorn, 1996: 41). Most people and researchers believe that building religious diversity is not easy. But tolerance can make religious diversity easier to apply. Leaders and/or managers may allow individuals to believe what they want to believe.

Ethnicity: An ethnic group is a group of people who consider themselves to be included in one or more characteristics such as religion, ethnic origin, national origin, language, and cultural traditions. Consequently, an ethnic group is any social group of people who have a common culture that distinguishes it from others in society. An ethnic group cannot exist without people who recognize the group as its members, either symbolically or as part of a group of companies. In it, people recognize an ethnic group because of their shared cultural patterns and traditions and define the group's boundaries by participating in these patterns and traditions (Martin, 1996: 402-433). The specific heritage may depend on the assumptions of family, relative, history, religion, language, geography, nationality, or all of these.

Culture: It is the set of elements that consists of beliefs, values, and common patterns of behaviour for a group of people (Schermerhorn, 1996: 39). Each community has its own culture or socio-cultural systems. Culture may consist of customs, ideas, rituals, ceremonies, symbols, taboos, language, tactics, and techniques as well as a life method. It has a critical role in the development of the organization and society. If the culture of organizations and societies is incorrect, it will not be able to exploit new ideas effectively unless they are, of course, perfectly appropriate to the formal and informal structures of the existing institution (Lloyd, 1994: 19-25). Culture can be defined as a combination of values, norms and traditions

that organizations, society and countries share. If anyone works or visits foreign countries, there are cultural differences, and maybe he will face difficulties in dealing with people there, because employee attitudes, values, standards, and ideas are greatly influenced by the culture in which an individual lives.

Physical Capacity: is the quality of the power; that is, the physical and mental ability to perform. Ability also influences how we behave and our performance (McCormic and Tiflin, 1974: 136-174). Even the most motivated person would do well only if he also had the ability to do the job. There are many types of capabilities; mental capabilities that includes intelligence and its basic building blocks, such as memory, inductive reasoning, and verbal comprehension. Psychomotor abilities include ingenuity, the ability to manipulate, hand-eye coordination, and motor ability (Dessler, 1974: 94). As well as the general abilities that all people possess, there are specific abilities that could be improved through education, training, and experience. To taking advantage of the individual differences in capabilities which is important for leaders and/or managers to manage their own community and organizations, organizations must assess them carefully for every person working in the workplace.

Disability: Companies absorb physical disabilities whenever possible, bringing another level of diversity to the workplace. Some disabilities are obvious, such as a person in a wheelchair, while others, such as chronic disease is not noticeable. Governments all over the world and human rights activists encourage the employment of persons with physical, mental, or emotional disabilities through official orders or by providing funding for companies to employ those workers. Even so-called invisible disabilities, such as depression and dyslexia, require workplaces to provide reasonable accommodations. These facilities help workers to perform their duties adequately, without higher  costs

The concept of sustainability management

The concept of sustainability


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is the optimal utilization of available resources and capabilities, whether human, material or natural, in an effective and environmentally balanced way, to ensure the sustainability of life without wasting the gains of future generations (Al-Baaj, 2018: 3). The term sustainability has been used since the eighties of the twentieth century to mean human sustainability on the planet. This paved the way to the most common definition of sustainability and sustainable development as depended on by the United Nations Environment and Development Commission in 1987: "sustainable development is a development that meets the needs of the present generations without preventing future generations from meeting their own needs. Sustainability is often associated with corporate social responsibility. Many people who hear about sustainability for the first time are thinking about green products or “shifting to a green environment”, recycling, global warming, and forest conservation; this is definitely one important part. However, it is more than that, so true sustainability involves thinking not only of environmental resources but also of employees, customers, society, and the reputation of the company (Heizer, et al, 2017: 195). Corporate Sustainability refers to a business approach to organizations to consider not only the economic needs in their strategies and practices but also the environmental and social needs, which is an opportunity for companies to improve their profitability, competitive ability and market share without harming or wasting resources of future generations. Sustainability is a process by which companies manage risks, obligations, financial, social and environmental opportunities. These three effects are sometimes referred to as profits and people. However, this approach depends on an accounting-based perspective and does not fully accommodate the time component. There is a more powerful definition which is that business sustainability represents flexibility over time, i.e. companies that can survive shocks because they are closely related to sound economic, social and environmental systems, and these companies create economic value and contribute to healthy ecosystems and strong societies.

Sustainability Dimensions

Economic Sustainability

: economic sustainability integrates economic, social, and environmental objectives into all that ensures maximization of current and future human well-being. A sustainable economy is an economy in which the number of people and their properties is kept at a stable level, and it is environmentally sustainable. In both public and private organizations, the focus should be on creating job opportunities and a good environment for SMEs. The intention is to create means to generate wealth based on productivity, trade, and sustainability (TL Reddy, 2015: 8).

Social Sustainability: social sustainability assumes, at the same time, economic transformation, that is, change in all areas of social and cultural life to be sustainable. Therefore, social sustainability is a continuous activity that aims to improve the quality of life for all segments of society by providing employment, food, clothing, and education opportunities. Every sustainable development project must balance economic, environmental, and social aspects of life.

Environmental Sustainability: this axis refers to the effective and rational management and t of environmental resources. The sustainability of natural ecosystems is essential for people's survival and for a decent human life. For this reason, public policies must ensure responsible and intelligent management of natural resources. In this sense, they should strive to achieve environmental efficiency; That is, wise use and reduction of environmental degradation (Dempsey, 2011: 289--300).

Political Sustainability: the main task of the political authorities is to encourage the transition towards sustainable development and measures to achieve the prudent use of natural resources. In the same way, the quality of life of its members is important, to eliminate poverty and to promote economic growth based on processes that do not destroy the environment.  It is essential to achieve harmonization of economic policies based on the principles of productivity and sustainability. It is also a priority for organizations to remain in constant renewal according to market trends and the reality of their environments (Ian Scoones, 2016: 295.

Cultural Sustainability: cultural sustainability


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depends on diversity and respect for all local, regional, national, or international aspects. Culture tends to define the behaviour of people globally. Therefore, cultural challenges such as creativity, critical knowledge, beauty, and diversity are linked to human development and form basic assumptions of sustainability (Marja, 2016: 55-58).

Diversity management as a basis for the sustainable business management model

Creating a diversity-based organizational culture involves series of complex actions that the organizations must take as part of their sustainability strategy. The implementation of diversity management can be divided into six phases: (creating a diversity management team, developing scenarios for the future, formulation of strategic vision, conducting diversity audits, organizational goals, and implementing diversity management for business sustainability in the organization (Kubica, 2014: 200) (Kidder et al, 2004: 77-102) (Holladay, 2011: 1-20).

Diversity Management Team: most organizations are mono-cultural, which suppose a risk to conducting environmental analysis in a conservative way. To broaden perspectives, the management can form a diverse management team that consists of people from different cultural backgrounds, the team must have specific skills and clearly defined tasks.

Future scenarios: in addition to the organization’s management, key stakeholders and representatives of different departments, the diversity management team should implement the so-called “scenario building workshop”. Three different scenarios of what the world will look like in 10 to 20 years (how its external and internal business will look like), with an emphasis on diversity and business sustainability in the organization. Finally, one scenario must be defined as a solid base for the organization.

Vision and Strategy: based on the specific scenario chosen, the organization's vision and mission must be formulated. This stage should involve the organization's management and key stakeholders. It is important to analyze the strengths and weaknesses of the organization, as well as opportunities and threats depending on this scenario. Based

on the results, the organization's vision and mission must be developed. The next step is to formulate a business sustainability strategy that defines how diversity management is implemented. When the above elements are done completely, the organization must return to the current situation and determine the status quo; this requires diversity auditing.

Diversity Auditing: diversity auditing is a tool used for evaluating an organization's status. During the review, one should ask the following questions :

*What is the position of management and other employees towards diversity?

*How does the total picture of the organizational culture of the company looks like?

* To what extent do the current structures and processes prefer employee participation in the organization's activities?

Organization’s goals: the organization's objectives related to the implementation of diversity management must be defined by members of the board of directors and the diversity management team. They should refer to the developed strategy and ensure the participation of the relevant departments of other structural units. They should all commit to accepting these goals and setting clear criteria for evaluating their achievement.

Implementation of diversity management: at this level, the diversity management team plays a major role as it supervises, monitors, and accompanies all activities. The team also works as a "call centre". The team may be responsible, for example for team building exercises that include diversity across all parts of the organization, events, and meetings with a large number of employees to provide information about diversity management, leadership development programs for managing diversity at the lower level management, and changing tools to assess the performance of managers. So, managing diversity is a multifaceted process that creates a work environment that benefits different departments of the business.

In general, researchers determine the characteristics of diversity in four areas. Personality (such as traits,


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skills, and abilities), internal characteristics (such as gender, race, intelligence, and sexual orientation), external characteristics (such as culture, nationality, religion, marital or parental status) and organizational characteristics (for example, position, department, unions) (Digh, 2008: 121).

The Empirical Part

The  Checklist

The main goal of this paper is to diagnose and analyzing the gap between the actual condition of diversity management and business sustainability in the Spinning and Weaving Factory / Wasit Governance through the comparison of requirements included in the checklist with the reality of procedures and processes in the factory; this is done through the use of the gap analysis (Gap Analysis). After diagnosing the gap for each requirement, the reasons for the emergence of this gap and the extent to which it can be overcome will be discussed. Therefore, the researchers did personal interviews with departments heads in the factory and discussed their actual observations to ensure the information accuracy, using the scale as in table (2) according to weights from (0) the lowest weight to (6) the highest weight. Gaps will also be calculated in the factory according to the following equations: (Muhammad, 2017: 16), (Salim, 2001: 92)

Equation (1) Arithmetic mean = sum (weights * frequencies) / sum of frequencies

Equation (2) : Weighted average = (weighted arithmetic mean) / value of the highest weight on the scale

Equation (3):  Gap size for each checklist = 1 - the percentage of conformance

Table 1: The seven-digit scale

Fully applied and fully documented ( FAFD)  Fully applied and partially documented( FAPD)  Fully applied and not documented (FAND)  Partially applied  fully documented(PAFD)  Partially applied and partially documented(PAPD)   Partially applied and not documented(PAND)   Not applied and not documented(NAND)

FAFD FAPD FAND PDFD PAPD PAND NAND
6 5 4 3 2 1 0

Source: Al-Khatib, Samir Kamel, "Total Quality Management", Contemporary Entrance, Egypt Library and Dar Al-Murtada, Baghdad, Iraq, 1,2008, p 326

Table (2) Checklist Diversity Management(Insert Here)

 

Results Discussion

Results discussion of the diversity management checklist

Strengths

  • There are strengths that enable the textile factory to implement diversity management efficiently and effectively as follows:
  • The factory works to employ efficient and skilled young manpower, to maintain current human resources and empower them through training courses.
  • Making use of the human resources expertise that exists in the organization, considering diversity as a matter of legal obligation.
  • Effectively exploiting diverse and new ideas to fit formal and informal structures.

Weaknesses

  • Little interest in developing these differences, to build the correct diversity strategy in favour of employees interests.
  • Shortage in providing the necessary funding to help them for the purpose of employing workers with disabilities.
  • Lack of provision of the necessary facilities for workers with physical challenges with the purpose of enabling them to perform their jobs without lowering performance expectations.

Results Discussion of the sustainability management checklist

Strengths

  • Social sustainability is a continuous activity that aims to improve the daily and future quality of life for all segments of society.
  • Working to encourage the transition towards sustainable development through poverty

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  • elimination and taking the necessary measures regarding the optimal use of natural resources.
  • Believing that the sustainable economy is the optimal utilization of human and material resources.

Weaknesses

  • Not enough interest in maximizing current and future human well-being.
  • Lack of interest in aspects of cultural sustainability, diversity, and respect for all local aspects, as sustainability is essential for individuals to enjoy a decent life and welfare state.

General results discussion

According to the results of the checklist, diversity management, as table (2) shows, the actual percentage of application and documentation in a textile and weaving factory in Wasit was (64%), which reflects a gap between the requirements of the checklist for diversity management and the reality of application and actual documentation in the factory, the gap was at a rate of (36%). The reason for this gap is due to the lack of interest in using these differences, advantages or disadvantages related to employees to support a well-defined strategy that deals effectively with diversity in the workplace. Also, the factory does not provide the necessary funding for the purpose of employing physically challenging workers; the same we can say about providing the necessary facilities for the purpose of enabling those workers to perform their work without lowering performance expectations. The results of the checklist for sustainability management appeared in the table (3), where it turns out that the actual percentage of application and documentation in the factory was (62.8%), which reflects a gap between the requirements of the checklist for sustainability management and the reality of application and actual documentation at the factory, valued at (37.2) %). Figure (2) shows the percentage of application and the size of the gap for both of them: management of diversity and sustainability in the factory.

Figure 2: Shows the percentage of application and the size of the gap(Insert here)

Conclusions and Recommendations

Conclusions: The study finds the following conclusions

1- The factory works hard to employ skilled and young manpower and offers training to empower them.

2-It  follows the procedures to retain the human resources and increases their abilities through training and development courses.

3- It takes advantage of the older human resources experiences in the organization and considers diversity as a legal obligation.

4- The factory exploits effectively diverse and new ideas in order to fit the formal and informal organization.

5- The lack of necessary funding for other business organizations to accommodate the largest possible number of people with disabilities.

6- It works to encourage the transition towards sustainable development by reducing poverty and taking the necessary steps through the optimal use of resources.

7- It lacks interest in various aspects of cultural sustainability and respect for all local activities, as sustainability is essential for individuals to enjoy a decent life and welfare state.

8- The senior management is able to deal with the human mix and achieve justice and equality regardless to their religious affiliations.

9- The lack of necessary funding for the purpose of recruiting the largest possible number of people with disabilities.

10 – The existence of organizational culture among employees so that they feel comfortable in the presence of diversity practices among them; the best example is  the importance of women entering the workforce and providing supplies that are appropriate for their physical nature.

11- The presence of the prevailing phenomena of administrative and political corruption, which led to the random employment of people, put a great challenge on the human resources management in how to deal with this situation.


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Recommendations: After mentioning the results and conclusions drawn from this paper, researchers recommend the following :

1- Working more and constantly to be always in a state of continuous renewal to keep pace with technological development and to fit with market trends.

2- Working more to encourage cultural challenges such as creativity, knowledge and diversity to ensure human development and developing leadership skills in this direction.

3- The existence of diversity in human resources must be accompanied by diversity in creating new product lines that meet the needs of the market like opening a production line for medical supplies for the purpose of facing the Corona epidemic.

4- Providing vacant spaces as well as warehouses and manpower that enable establishing various production lines that differ from the organization’s current work, such as opening a production line for the purpose of producing vegetable oils, knowing that Wasit Governorate is considered the first to produce its raw material.

5- Providing the necessary funding to accommodate the largest possible number of people with disabilities.

6- Promoting and supporting the national products through more cooperation and communication with the public sector organizations.

7- Developing effective and rational human resources management skills away from favouritism, which is a must for sustainability and the future of society.

8- Spreading the concept of diversity management and making it a strategic choice and a source of competitive advantage creation.

9- Public organizations should pay attention to offering diversity training courses for the purpose of achieving sustainable management.

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