Diversity in the hospitality industry

Diversity in the hospitality industry

The strategic opportunity to leverage diversity to enhance performance has become common. In the hospitality industry, multicultural diversity is being utilized to build better relationships among the employees. The hospitality industry especially the hotel sector is characterized by diversity in relation to almost all facets of its organizations and operations. Hospitality represents highly labor-intensive sectors and provides many job opportunities especially to youths and women. However, the chances of advancement in the hospitality industry are quite slim for the minorities. This means that the players in the hospitality industry should take deliberate efforts to encourage the minorities to pursue further studies so that they can be promoted to managerial position. If the organization does not have in-house talent it could associate with bodies such as National Association of Black Hotel Owners and the Women’s Foodserve Forum who could provide the organization with minority employees who can ably handle managerial responsibilities (Swanson 257). Another way in which players in the hospitality industry can attract qualified and diverse workforce is by communicating their diversity efforts through their corporate web sites. This strategy has received great interest from the researchers. A study that was conducted by Groschl (221) concluded that using corporate websites to communicate the diversity initiatives of the company appeals to both consumers and the employees from minority groups. Most importantly, hospitality organizations gain competitive advantage in talent recruitment and market accessibility (Groschl 230). Forming strong supplier relationship is another key strategy that can work in the hospitality industry. Players in the hospitality industry need to form cordial relationships with suppliers and the minority communities.

Sturman (70) argues that the hospitality industry is highly dependent on strong customer relations. Consequently, there is need to employ diverse workforce in order to attract a diverse clientele and portray the organization as being non-discriminatory when it comes to hiring. . It is also worth noting that the hospitality industry especially the hotel sector sometimes relies on imported labor. As a result, the employees in the industry come from different backgrounds. The industry can use its workforce to its advantage but this will depend on whether it is willing to conduct multicultural training in order promote cross-cultural awareness. Diversity training is particularly important in the hospitality industry because of the need to educate the employees about their differences. Unfortunately, a study that was conduct in Melbourne Australia found out that the employees in the hospitality willing to join the cross-culture awareness training are very few and this poses a huge problem to the industry because without proper training, diversity is likely to lead to negative consequences. The application of diversity in the hospitality industry will be examined using relevant case studies.

Hilton hotel

The organization has a diversity program, and the management has been able to enhance awareness. One element of the Hilton’s diversity program is training. The employees are required to participate in the diversity program by taking several training courses. In order to make, the program successful, the top management has dedicated vast resources. The top management believes a diverse workforce can understand the customers better as well as identify their needs.

The Hilton’s diversity program has incorporated some important activities. Firstly, an evaluation is conducted on a continuous basis to gather employee feedback regarding the work environment, equal opportunity, tolerance and equal access. Secondly, the human resource department has initiated mentoring programs aimed at improving competency levels of the disadvantaged employees.

Mariott International

The organization has more than 300,000 employees working in more than 500 establishments. The organization has a serious stance on diversity as evidenced by its various programs such as the ‘ commitment to excellence’. Under this program the members meet on a regular basis to discuss the diversity objectives and monitor the overall performance of the diversity program. A key initiative of the Marriott’s diversity program is the Diversity Ownership Program (DOI) which was launched in 2005. This initiative sought to increase the number of employees from minority groups. The organization has also launched an initiative named ‘thirst for excellence’. The purpose of this initiative is to teach the employees different language hence enhancing cohesion among members of diverse backgrounds. The organization also values forming strong relations with organizations that represent minatory groups. In this regard, the organization has established cordial relationship with the American Foundation for the Blind, the Associaton of Latino Professionals in finance and Accounting , Hispanic Corporate Council, Woemn Business E1terprise National Council and National Black MBA Association. The top management uses such organizations to increase the share of women and minority group share, in the workforce.

In its quest to create a diverse workforce, the company also has a supplier diversity program. The program was established in 1997, and it identifies diverse suppliers locally, and internationally. Through this program, the organization has partnered with 5,000 diverse suppliers around the globe. The organization plans to double its number of diverse suppliers by 2020. Other players have a lot to learn from Mariott’s Supplier Dwiversity Program. The program has had a great impact on its profitability and has won favor from minority groups.

Hyatt Group of Hotels

Another key player in the hospitality industry is the Hyatt group of hotels. The motto of the company is to become a leader in the hospitality industry by creating a more diverse population. The organization has made three key achievements in regard to diversity. Firstly, between for the last one decade the number of ethnic minority general managers has increased from 9% to 20%. Secondly, the number of general managers in the company has increased from 6%w to 10%. Lastly, business with minority suppliers has increased from 9% to 27%.

These achievements have been realized due to the commitment of the top management to pursue diversity. A number of innovative programs have been initiated. One of these programs is the ‘ Creating An Inclusive Culture Class’, which was initiated in 2008. Another equally important program is the ‘Diversity Back of the House Poster’. Besides pursuing internal diversity, the organization has committed itself to establishing strong relationships with external partners. In this regard, the organization has formed relationships numerous bodies such as US Hispanqic LeadershipInsitute, National Association for the Advancement of Colored People and the League of United Latin American Citizens.

Finally, the organization has established an ambitious plan to sponsor minority students through the Hyatt Hotel Fund for Minority Lodging Management Studensts. Students who successfully complete their studies are then absorbed in the company’s workforce. This initiative has increased the share of the minority groups in the company’s workforce. Besides that, the company has a mentoring program to prepare employees from minority groups for promotion.

Yum Brands

The company has presence in more that 100 countries and enjoys a number of visible brands. The company draws its strengths from its diverse workforce. In order to attract the right talent, the company has initiated an ambitious diversity program which is reflected in its strategic plan. Its flagship program is named ‘How We Win Together’ and is based on the idea that every employee in the company counts. Its internal and external diversity program is a huge success as evidenced by the composition of its associates. According to Barker and Hartel (15) 30% of Yum’s associates are white while the rest come from minority groups.

Just like Mariott and Hyatt Group of hotels, Yum has also formed strong relationship with key colleges and institutions with a view of attracting diverse talent. The company has also established an initiative dubbed, MinorityFran, to increase its number of franchises that are run by minorities.

Darden Restaurants

Just like other key players in the hospitality industry, Darden Restaurants also has diversity programs. Its management believes creating a diverse workforce will lead to bottom line performance of the company. In this regard, the company has established strong relations with African-American, Asian-Amqerican, Hispanic and Women associations. The company provides these associations with funds to impart its members with leadership skills. Internally, the company has established groups that serve the interests of its minority employees.

As indicated by Baker and Hartel (14) one of the key activities in the implementation of a diversity program is the involvement of all the employees. In this regard, the company has established voluntary training programs whose purpose is to create awareness about the benefits of diversity among traditional and non-traditional employees. As a result of these efforts, the company has earned numerous awards besides being ranked as one of the most diverse organizations.

Currently, the company has more than 150,000 employees. In order to attract the best talent, its recruitment panel has representation from diverse groups. Another key activity of its diversity program is the involvement of personal disabilities in its career-related operations. In addition, the company offers scholarships to Asian and Pacific Islanders who are then absorbed in the company upon completing their studies.

The above case studies illustrate various in which key players in the hospitality industry have managed to implement their diversity program. One of the key activities that has potential for enhancing diversity is the mentor program. The next few chapters look at the relevance of mentor program in the hospitality industry.

Mentor program

Mentoring entails using mentors to impart knowledge and skills to the employees. A mentor helps other employees improve their capabilities through learning and experimentation. In the hospitality industry mentor programs improves the relationship between the managers and the employees. Some of the players that have mentoring programs include Kimpton hotels, Hyatt and Hilton Hotel. Kimpton’s mentor program aims to prepare manager for senior leadership roles while identifying potential leadership skills in the employees from minority groups. On the other hand, Hilton hotel has two mentor program: Shine 1 and Shine 2. The objective of Shine 1 is to prepare departmental heads for top-level management jobs while Shine 2 is targeted towards hotel directors as a form of training for the General Manager role.

There is no doubt mentoring is a good strategy that can bring change at an individual levels. Owing to its potential benefits the hospitality industry should use it help the under-represented demographic groups to move through the invisible barriers to advancement. Benschop (1166) conducted a mail survey on mentoring and the results of the study indicated that mentoring has an association with career attitudes such as commitment, job satisfaction, and the perception of organizational justice. The study also came up with an effective finding; mentoring as one of the formal HR strategy may not work for traditional out-groups. In order to make this approach successful in the hospitality industry, the top management should focus forming affective ties with the out-group members.

Benefits of diversity management

The theoretical basis of diversity can well be understood by categorizing its effects into four. The first category refers to effects that touch on involvement, satisfaction, identification, role conflict, role ambiguity, perception of discrimination and social integration. These terms are closely associated with the phenomenon of ‘ homophily’ (8). The concept of ‘homophily’ dictates that people like to engage with others who are similar to them. However, it has also been established that social integration can also occur among dissimilar persons if group processes are made subject of reflection and discussion.

The second category of the effects of diversity is cognitive in nature. It is widely acknowledged that heterogeneous groups have different perspectives on many issues. This wide range of ideas can be tapped to promote creativity. In addition, a varied group brings with it a broader network of relationship that can help the group to meet its objectives. The third group of effects of diversity is classified as symbolic. When an organization embraces cultural diversity it gains legitimacy from the outside world because every member of the society is represented. In contrast, when an organization discriminates against some members of the society it loose favor due to lack of heterogeneity. It then follows, it is important for organizations to employ a diverse workforce in order to achieve heterogeneity. The benefits of achieving heterogeneity are numerous one of which is, it encourages external groups and customers to buy products or services from an organization (Leonard and Levine 547). The last category is related to communication. When an organization promotes heterogeneity communication between employees become more formal and less frequent.

Many studies have been conducted to examine the correlation between diversity management and its benefits. One such study that was conducted by Coy and Taylor indicates diversity management leads to cost saving, resource-acquisition, creativity, system, flexibility and enhancement of problem-solving ability. In another similar study that was conducted by Robinson and Denchant, the key benefits of diversity management are enhanced breadth of understanding in leadership positions, innovation, improved problem-solving capacity and market understanding, and better utilization of resources.

Another study was conducted in UK indicates diversity management is key to the attainment of competitive advantage while Leonard, Levine and Joshi (731) found out that diversity management leads to fresh ideas, innovation, increased problem-solving skills, a reduction in intergroup conflict, more market opportunities, multiple perspectives and enhanced flexibility. In a similar study, Liao, Joshi and Chuang (969) found out that through diversity management organizations are able to benefit from the diversity in the labor market, increase employee potential, new business opportunities and innovation.The correlation between diversity management and its outcomes has also been examined using the primary and secondary dimensions.

Gender

Gender-based inequities in an organization are based on the idea that women are inferior compared to men. In other words, organizations prefer hiring male workers because they are perceived to have better performance and the ability to manage their jobs. On this note a study that was conducted by Manix and Neale (31) found out that only 54% of working-age women are in the workforce compared to 80% of men.in order to address this disparity it is important to give equal opportunities to women. Martin and Parsons (865) observes embracing diversity by employing women is likely to improve the quality of services provided by the company as employees are able to understand customers better in addition, hiring women is likely to help an organization to tap niche markets.

Another study that was conducted by Maurer and Rafuse (110) concluded there is a positive correlation between team gender diversity and intra-team cooperation. The study further found out there is a positive relationship between gender diversity and team performance. When it comes to hiring women in managerial and non-managerial level, the study provided conclusive evidence that gender diversity is likely to lead to better performance.

While supporting Maurer and Rafuse, Jackson and Joshi are quick to point out that although gender diversity is positively related to organizational performance, these benefits are contingent on situations such as organizational strategy, culture and environment. Although there is massive support for gender diversity, there is still a feeling that it is likely to slow down group functioning. The critics of diversity model have also questioned the impact of diversity programs on the bottom line of business organizations.

Age

Age diversity has become an import part of an organization. According to Maurer, Weiss (115) age heterogeneity has complimentary effects whereby individuals in a group support each regardless of their age. The interaction between workers of different ages with differing skills profiles and perspectives leads to more productivity. However, there is a feeling among some scholars hat individuals favor members of their own groups at the expense of the other groups. For instance, older and more experienced workers may discriminate against younger workers hence affecting the performance of an organization and encouraging emotional conflicts.

Ethnicity

Another primary dimension as was indicated at the beginning of this paper is ethnicity. Jackson and Joshi (801) argue that different ethnic groups have different views when it comes to problem-solving tasks. This position is supported by a study that was conducted by Jaeger and Bowman (87) which shows that ethnicity broadens the viewpoints and perspectives in a firm. Differing views and perspectives in turn encourage innovation. However, the study established a high degree of age diversity may be negative because it creates conflict and cliques due to social categorization.

References

Jackson, S. E., Joshi, A., and Erhardt, N. L. Research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(2003): 801−830.

Jaeger, P. T., and Bowman, C. A. Understanding disability: inclusion, access, diversity and civil rights. Westpoint, CT: Praeger, 2005.

Jehn, K. A., and Bezrukova, K. A field study of group diversity, workgroup context, and performance. Journal of Organizational Behavior, 25(2004): 703−729.

Kirby, S.L., and Richard, O. C. Impact of marketing work-place diversity on

employee job involvement and organizational commitment. The Journal of Social

Psychology, 140(2000): 367-377.