Diversity (business)

The "business case for diversity" stem from the progression of the models of diversity within the workplace since the 1960s. The original model for diversity was situated around affirmative action drawing strength from the law and a need to comply with equal opportunity employment objectives. This compliance-based model gave rise to the idea that tokenism was the reason an individual was hired into a company when they differed from the dominant group.

The social justice model evolved next and extended the idea that individuals outside of the dominant group should be given opportunities within the workplace, not only because it was the law, but because it was the right thing to do. This model still revolved around the idea of tokenism, but it also brought in the notion of hiring based on a "good fit".

In the deficit model, it is believed that organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover which will result in higher costs to the company.

In a journal article entitled "The multicultural organization" by Taylor Cox, Jr., Cox talks about three organization types that focus on the development of cultural diversity. The three types are: the monolithic organization, the plural organization, and the multicultural organization. In the monolithic organization, the amount of structural integration (the presence of persons from different cultural groups in a single organization) is minimal. This type of organization may have minority members within the workforce, but not in positions of leadership and power.

The plural organization has a more heterogeneous membership than the monolithic organization and takes steps to be more inclusive of persons from cultural backgrounds that differ from the dominant group. This type of organization seeks to empower those from a marginalized standpoint to encourage opportunities for promotion and positions of leadership.

The multicultural organization not only contains many different cultural groups, but it values this diversity. It encourages healthy conflict as a source of avoiding groupthink.

A study of successful multicultural organizations as opposed to monolithic and plural organizations can be understood by applying theories of leadership which have evolved over time. Trait leadership theory suggests that leadership is dependent on physical and social attributes of the individual and greatly based on European cultures. Situational leadership, where the balance of managing relationship behavior and the tasks at hand, underscore multicultural organizations.

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