Date: 2016-09-27 09:00 AM – 10:00 AM
Last modified: 2016-09-15
Abstract
This study aims to analyze how diversity management (DM) adopted and implemented through the policies and practices of HRM in a company. As for, the research questions of this research are as follows: (1) What are the motivates of the company to apply DM ?; (2) what are external and internal factors as the driving forces of the company to apply DM ?; (3) How does the company internalize DM into policies and practices of HRM ?.
This is a qualitative discriptive research from a single case study. The case of this study is an MNC bank operating in Indonesia who have applied DM. Indonesia context is interesting to be studied as this country has considerable diversity and multiracial, multi religion and multi-culture background. Data was obtained through in-depth interview with a number of key informants consisting of the top and middle management, human resources department manager, and several employees.
The study found that motives of the bank to adopt DM is, beside the increasing competition in the banking industry, also the global banking operations has to adapt with the environment where the bank is operating. Moreover, globalization is the reason why the bank adopts DM. Globalization affects the variety of laboring labors in the market, so that the management of various employees is needed to minimize conflicts and to be an advertising tool for the company to recruit talented minority in laboring market.
Competition in the banking industry forces the bank to create various innovation and creativity in providing the products and services that could satisfy the customers and clients' need. To create the right products for the customers and clients, the bank should understand the characteristics, needs, and obstacles of the customers and clients. By having employees with various backgrounds, there will be a bond between company and customers or clients, so that the customers and clients' needs and obstacles could be acknowledged and any solution could be found. This bond could also creates another business opportunity for the bank.
Internally, the study found that the application of DM in the company requires the support of top management commitment which is represented in the formulation of the vision statement of company that accommodate DM issue. From the vision and mission, then it should translate into a company’s strategy which oriented to DM. Besides, organizational culture also need to be adjusted by entering values that may support the application of DM in the company.
On the external side, it was found that government regulations and policies in the banking industry at the macro level can also be a driving factor in the application of DM in a company or bank level. But more importantly, the development of diversity in customer and market served by a company, was found to act more as a driving factor for banks to implement DM voluntarily.
The application of DM in the bank studied was found operationally implemented in HRM policies and practices that starts from the application of Equal employment opportunities in the activities of recruitment and selection, training and employee development opportunities, compensation systems, performance appraisal system and career path opportunities.
DM is a beneficial solution for MNC bank that operates globally especially in multicultural countries to recruit talented employees and HRM may becomes a tool to manage the various employees. The ability of the company to manage their employees by giving the same opportunities and access for the minority could make them feel appreciated and as a result they may give positive feedback by giving their best performance and loyalty to the company.
Research studies on diversity management on MNC Bank are scarce. The finding of this study, however, can be useful and help to expand further research in this area.