Managing Diversity at Cityside Financial Services Essay - 2

Managing Diversity at Cityside Financial Services - Essay Example Challenges of diversity for hiring, management, development and retention practice as well as solution are discussed with respect to the case study. Ethical and legal issue of strategic talent management and development and Cityside Financial Services are discussed. Human Capital The importance of human capital is gaining increasing significance in the recent competitive environment. Corporations are identifying the magnitude of investing and allocating the resources in their human capital. This is due to the perception that in order to stay on a leading position in the global economy, they have to appreciate and develop their human capital (Alta Associates, 2006). Impact of Diversity on Organization There are several changes in the cultural aspects of an organization that complicates the management to understand the cultural diversity and its affect upon an organization. An organization can be affected through primary and secondary diversity of human resources. The primary diversity embraces ethnicity, age, race and abilities or qualities. The secondary diversity comprises of educational background, religious beliefs, work experience, marital status and person belonging to a region. All these factors of the primary and the secondary diversity have a great impact on organizations in terms of performance, conflicts, disputes and other related aspects of an organization.... The affect of diversity upon an individual’s career and an organizational effectiveness is illustrated through a diagram represented below in figure 1. Source: (Moon, 1997). The model represented in figure 1 demonstrates that an individual’s group associations such as gender, age and race can be analyzed on the basis of three levels namely organizational, intergroup and individual. These three factors will collectively assist in determining the diverse environmental impact upon the organization. This environment influences individuals’ and organizations’ outcomes that may be in the nature of achievement outcomes or it may be effective outcomes. These outcomes of an individual might have an impact on organizational productivity, quality as well as other factors (Moon, 1997). Impact of Diversity on Human Capital Management Diversity driven workforce of an organization has a great impact upon human capital management. The diverse workforce may not ensure prop er decision making, creativity, flexibility along with several other aspects. Therefore, unique and multicultural workforce needs to be refined and promoted so that the workforce gets a chance to express their viewpoints. Higher employee turnover and conflicts occur when there is poor diversity management. In this situation, ‘value in diversity’ approach is required in order to derive benefit from positive effects of diversity and in turn helps to avoid the effects that are negative in nature. There are organizations that value diversity and take its advantage by encouraging the workforce for participating in organizational decisions and develop their perspectives and skills (McMillan-Capehar & Aaron, 2009). Challenges of Diversity for Hiring, Management,