diversity issues in a case organization, and the organization in focus is PricewaterhouseCoopers (PwC)

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Organizational case study

Introduction

The current business environment an increase in globalization trends requires that an organization incorporates diversity as a best practice area (Stretch, 2006). In relevance to the changing business environment and demographics, it is important to recruit, retain, and manage a diverse workforce in a way that the reputation and competitive advantage of the organization will be retained. Diversity occurs in terms of gender, ethnicity, and ages and these should be strategically managed in order to overcome the challenges that occur when people from different backgrounds unite in the workplace (Reichenberg, 2001). Diversity has potential for great accomplishment but can also be a source for great conflict (Miller & Hayward, 2006).

The purpose of this essay is to discuss diversity issues in a case organization, and the organization in focus is PricewaterhouseCoopers (PwC). The objective of the research is to highlight the strategies that constitute good practice in diversity management today. The followings key issues are discussed: First, PwC’s current workplace profile and the organizational strategy and goals. Second, the essay discusses the organizational level diversity strategies. Third, the essay discusses gender, education level, and work orientation preference as dominant diversity issues in PWC. Data gathering is made possible from peer reviewed scholarly literatures that discuss current diversity issues in organizations. A critical review of literatures is done in the aim of comparison to the PwC case and also identification of research gaps that warrant further studies is done. Limitations in the study are stated.

PricewaterhouseCooper’s workplace profile, goals and strategies

PwC is a multinational assurance, tax and advisory services provider firm for both public and private clients and the focus is at industrial level. The services are provided in the areas of corporate accountability, risk management, structuring and mergers and acquisitions, and performance and process improvement (EOWA, 2008). According to the EOWA (2008) report, PwC focuses on attracting, developing and retaining the best talent, and in accordance to gender, improved outcomes for women have been termed as fundamental. There is an increased level of female intake especially for the top executive position as the report states (EOWA, 2008). PwC employs full time workers (43.20 % female and 48.67 % male); Part-time workers (5.80% females, and 0.94% males); and casual workers (0.88% females and 0.52% males) (EOWA, 2008). In accordance to the workers grading, there are 420 partners (14 % female, 85% male) 444 directors (31% F, 68.9% M), 612 senior managers (45.9%F,54% M) 762 managers (49.6% F, 50%M) 1126 senior accountants and consultants (49%F, 50.5%M), 1427 accountants and consultants (53.6% F, 46.3% M), 212 undergraduates (51.8% F,48.1M) and 428 support staff (97.9%.F, 2.1M).

Organizational level diversity strategies

One of the strategies of the firm in Australia is the creation team behaviors and core clients which serve as the framework of the culture change program being adopted by the firm globally (EOWA, 2008). The Experience framework entails an integrated suit of behaviors, processes, policies and strategies that reflect the transparency, flexibility, rights and obligations in relevance to the diverse and inclusive workforce. The PwC ensures equal employment opportunities through its comprehensively created program dubbed the eQuilibrium program which seeks to build talent and diversity through creating an understanding and supportive environment for the life needs of the employees as they progress in their careers. The aim is to provide a work-life balance for all employees from various backgrounds by balancing both personal and career goals. Importantly, the eQuilibrium is tailored to attract and retain specific demographic groups, especially women (EOWA, 2008). This is a remarkable move considering that previously, working for PWC has been considered demanding and that personal goals of demographics like women employees could not be easily met. The eQuilibrium program includes polices such as Flexible work arrangements such as working from home or working part time, child or elderly care and referral services, parents gift, parental leave, paternity leave, PwC kids artwork, parent networking, social club, paid study leave, and intranet site in which employees can access online resources to make a business case for work flexibility among others. These strategies are attractive to women, family members and young people advancing their careers or still undertaking studies, and also the increasing trend of part time employees in Australia.

Dominant diversity issues in PWC

PWC focuses in increasing the number of its staff as the years go by, and this is with a special focus on diversity (EOWA, 2008). First, issues of gender and especially recruitment of women is highly considered in PWC after a survey that revealed that there is a positive correlation between the firm’s growth and the increase of women’s proportion in the senior management levels. Second, PwC strives to attract individuals from various educational levels and age as observed on the 2008 increase of staff at graduate entry level of which females were again in favor (EOWA, 2008). Third, PwC strives to increase employees from various orientations of work preference and especially part time workers although this population has remained stable but with females being of a higher number.

As part of attract ting and retaining the female workforce, seven employment matters are put in place and these are recruitment and selection, promotion, transfer, and termination, training and development, work organization, conditions of service, sex-based harassment, pregnancy, potential pregnancy and breastfeeding.

Critical Analysis of Issues

Diversity refers to how the social groups in the organization are represented in terms of gender, ethnicity, race, or age (Enchautegui-de-Jesus, Hughes, Johnston & Oh, 2006). Kravitz (2005) notes the increasing trend of globalization at the work environment and hence the greater workforce diversity. Great workforce diversity requires the need to apply a wide variety of skills especially to the increasing complexity in jobs (Kravitz, 2005). PwC foresees further firm’s growth and success if the number of women in senior managerial positions is increased. Similarly, Gill, Mills, Franzway and Sharp (2008) analyze through a study that the issue of gender in connection to high educational achievement and professional career fulfillment. The study is drawn from Australia engineer firms situated at various locations. The purpose of the study is to investigate ways in which education and professional career fulfillment aided the women in further negotiations of promotion or pay rise and dealing with realities of a divergent workplace. The findings of the study revealed that females who have high educational achievement engaged in a range of tactics in the effort to achieve a degree of acceptance at the workplace and some professional recognition. Causon (2008) criticizes the poor reputation of engineering and technology professions in diversity issues concerning female employment. This study relates to the PWC scenario in which women are fewer in high demanding professions like engineering and consultancy. Nevertheless, the recognition of the importance of women at the workplace is remarkable as firms seek to put women in higher positions in the organization (Sappleton & Takruri-Rizk, 2008).

Many organizations including PWC focus not only in increasing female diversity at the workplace but increasing the whole diversity incident in general. As observed in the profile, PwC intends to increases the size of the workforce every year. A study by Harrel (2007) aimed to find out the extent of size and kind of diversity that a firm should have in order to be successful. The findings revealed that the higher the number of people in a group and the more diverse they were the faster and better the tasks were preformed. The study therefore recommends the recognition of groups in the entire organizational culture. Larger groups have greater resources, strength and energy as compared to smaller groups. However, conflicts are also likely to be higher in larger groups but these can be managed strategically (Mannex & Neale, 2005). Mannex and Neale (2005) argue that as much as workplace diversity increases, there is still tension between the promise and reality of diversity and reality in team processes and performance. Nevertheless, there is optimism that diversity will lead to an increase in the variety of perspectives and approaches that can be used in problem solving or provide opportunities for knowledge sharing, creativity enhancement, and quality of team performance. Therefore, at group level, PwC can use team diversity to foster better organizational performance. Burr and Mutchler (2007) assert that the changing demographics need to be utilized in the workforce and should focus on getting the best from age, gender, and ethnic backgrounds.

King and Biro (2006) address diversity from the issue of sexual identity and addresses the challenges that gay couples face in fitting in at the workplace. This is a novel issue that is yet to be accepted in the society. Nevertheless, if there are outweighing benefits that sex identity can bring to the workforce, then the diversity should be utilized.

Managing diversity requires that equality is observed despite of an individual’s demographic background (Stretch, 2006). Globally legislations have occurred to rule against sexual orientation discrimination, sexual harassment, affirming universal human rights and promoting affirmative action (Stretch, 2006). PwC has also faced a recent issue in press in which there was claim of sexual harassment. Nevertheless, the firm maintains a strong stance through its ethical code of conduct as it seeks to maintain a culture of integrity across all activities, for instance recruitment, promotion, and termination among others.

Diversity at the workplace is attributed to the increased global activities such as immigration for the purpose of education, work, marriages, or search for newer settlements (Doyle & George, 2008). These demographic changes warrant the integration of diversity in the organizations. Doyle & George (2008) discuss the issue of diversity from a social worker perspective. Diversity is evident at the workplace and it is usual for cases of discrimination or ethnocentrisms to occur. Doyle & George (2008) refer to the social worker as personnel with a focus o ensure social justice, access, and equity for all members of non-dominant, marginalized or oppressed social groups in the workplace.

Effective diversity management is important for the psychological well being and job satisfaction by the employees (Enchautegui-de-Jesus, Hughes, Johnston & Oh, 2006). Recommendations

PWC intent to increase diversity is remarkable especially when the focus is to increase the number of females in top managerial positions. Diversity incorporation requires articulation of organizational structures and culture to the diversity at individual, group, and organizational levels (Jin, 2007). PwC can use the following criteria to determine whether the firm has the potential for best practice in organizational diversity. First, the program eQuilibrium becomes successful over a period of time. Second, both quantitative and qualitative results are produced with the program. Third, the outcome developed is positive and warrants customer satisfaction. Fourth, diversity management results to innovation and hence growth of the firm. Fifth, the project should be replicable and transferable to all the areas of the organization. Diversity of gender is practice area but the firm should also formulate an equivalent program for multiethnic backgrounds considering that PWC is multinational and therefore likely to draw workers from all over the world.

Limitations

The literature has mostly focused on gender as a major diversity issue in regard to the case study organization in which a higher female workforce is being attracted. However, issues of diversity are wide and further research can be done to study the issue of disability or racial differences at the workplace.

Conclusion

The studies show that diverse teams in organizations perform better and are more creative than small homogeneous teams. PwC seeks to increase its diversity through attracting, hiring and retaining employees from various demographic backgrounds. The firm’s profile shows that women are fewer at the top managerial positions and this is what the firm seeks to change. Through the eQuilibrium program PWC has laid policies that will ensure better hiring and retaining practices for women. PwC’s future diversity aspects should aim to address ethnicity, racial and disability issues.

References

Burr, J. & Mutchler, J. (2007). Employment in later life: A focus on race/ethnicity and gender. Aging Workforce, 37-44.

Causon, J. (2008). The diversity advantage. Engineering and Technology, 78-81

Doyle, R., & George, U. (2008). Achieving and measuring diversity: An organizational change approach, Social Work Education, 27(1): 97-110.

Enchautegui-de-Jesus, N., Hughes, D.,Johnston, K.& Oh,H. (2006). “Well-being in the context of workplace ethnic diversity. Journal of Community Psychology, 34(4): 211-223

EOWA (2008). Public report on EO workplace program for PwC 2007-2008. Available at http://search.eowa.gov.au/ReportFiles/2007/40631_.doc

Gill, J. Mills, J., Franzway, S., & Sharp, R. (2008). “Oh you must be very clever! High achieving women, professional power and the ongoing negotiation of workplace identity,” Gender and Education, 20(3): 223-236

Harrel, A. (2007).Group formation in a simulated scavenger hunt: How big and diverse should a successful group be? Social Behavior and Personality, 35(1): 31-40

Jin, N. (2007). Group composition and employee creative behavior in a Korean electronics company: Distinct effects of relational demography and group diversity, Journal of Occupational and Organizational Psychology, 80(2): 213-234

King, K. & Biro,C. (2006). A transformative learning perspective of continuing sexual identity development in the workplace, New Directions for Adult and Continuing Education, 112: 17-127

Kravitz, D. (2005). Diversity in terms: A two edged sword requires careful handling. Psychological Science, 6(2): 1-2

Mannex, E. & Neale, M. (2005). The promise and reality of diverse teams in organizations. Psychological Science, 6(2): 31-55

Miller, L.,& Hayward, R. (2006). New jobs, old occupational stereotypes: gender and jobs in the new economy. Journal of Education & Work, 19(1): 67-93

Reichenberg, N. (2001). Best practices in diversity management. Retrieved October 23, 2010, HYPERLINK “http://unpan1.un.org/intradoc/groups/public/documents/un/unpan000715.pdf” http://unpan1.un.org/intradoc/groups/public/documents/un/unpan000715.pdf.

Sappleton, N.,& Takruri-Rizk, H. (2008). The gender subtext of science, engineering, and technology (set) organizations: A review and critique. Women’s Studies, 37(3); 284-316

Stretch, J. (2006). “Managing diversity: toward a globally inclusive workplace. Social Work, 51(3): 279-288