Abstract
Today, workforce diversity is not only a legal requirement for organizations, but it is also a must to survive in a highly competitive business environment. The prime motive for this study is to investigate the relationship between workforce diversity and perception of discrimination. The basic hypothesis of the study is that as the workforce diversity increases, the perception of discrimination decreases. In order to test the hypothesis, a survey is carried out international hotel chains in Istanbul. There are 19 international hotel chains in Turkey. In this study research is designed to understand human capital heterogeneity pattern of international chains of hotel industry and how this contribute organizational culture strategically that help to manage organizational performance much more efficiently with cross sectional data. Globalization of markets, changing demographics in the labor market, new business strategies requiring team work and the shift from a manufacturing to a service economy are the prime reasons for human capital heterogeneity (HCH). HCH improves the organizational capabilities in terms of flexibility, creativity, problem solving and competitive advantage. Especially in the service sector, in order to gain competitive advantage, organizations need a diverse workforce for both understanding the diverse needs of customers and answering to these needs in a prompt and proper way.
Highlights
There are various classifications of discrimination types in the literature, two of the most widely stated ones are disparate treatment and disparate impact
Disparate treatment occurs when individuals in similar situations are intentionally treated differently based on such factors as race, religious belief, sex, age, national origin, disability status
Disparate impact occurs as a result of employment processes or decisions that result in discrimination, there is no such discriminatory intention
Summary
There are various classifications of discrimination types in the literature, two of the most widely stated ones are disparate treatment and disparate impact. Disparate treatment occurs when individuals in similar situations are intentionally treated differently based on such factors as race, religious belief, sex, age, national origin, disability status. Disparate impact occurs as a result of employment processes or decisions that result in discrimination, there is no such discriminatory intention. Discriminatory practices towards workforce result basically from prejudice against individuals or certain groups (women, black people, the disabled etc.) There are negative consequences of discriminatory practices for the organizations such as high turnover rates, decreased employee efficiency and motivation, increased absenteeism rates, increased failure rates in selecting the best people for the job, diminished competitive advantage and as a result of these, decreased overall efficiency and effectiveness of the organization. Diversity means that organizations are becoming more heterogeneous in terms of sex, race, age, national origin, thought, viewpoint etc
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