Wolter Boeky & Lieli Suharti

DIVERSITYiversity MANAGEMENTanagement ANDand THE ROLE OF the Role of HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONSHuman Resource Management in Indonesia Organization Wolter Boeky & [email protected] Lieli Suharti [email protected] Post Graduate Programme of Management Faculty of Economics and Business, Satya Wacana Christian University, Salatiga, INDONESIA Indonesia E-mail: [email protected]; [email protected]

AbstractBSTRACT It It is inevitable that issue of diversity becomes the subject of discussion in many organizations recently. Globalization that allows employees to migrate and work in different countries led organization to have a wide assortment of employees with varied characteristics and cultural background. Indonesia is one of countries which has a lot of diversity issues because of its pluralistic society. Indonesian population diversity will also be reflected in the organization life in Indonesia and it is needed to manage the diversity that exists in order to bring benefits to the organization. The implementation of diversity management in the organization should be concretely reflected in the strategies, policies and practices of human resource management in organizations. This paper is written based on a literature study which highlights the importance of internalization diversity management practices in human resources management policies and practices primarily in companies in Indonesia

Key words: Diversity management, Globalization, Human Resources Management, Indonesia 1. Introduction: The Importance of Diversity Management (DM) in today's organization

In this globalization era, the demographic changes of the workforce leading to the form of an increasingly diverse workforce can not be stopped, so it needs to be managed properly in order to provide a competitive advantage for the organization (Von Bergen, Soper, & Parnell, 2005). Some researchers such as Richards and Kirby (1999); Vedpuriswar (2008), define diversity as differences in demographic characteristics such as age, race-ethnicity, and gender. The diversity of employees, according to Loden and Rosener (1991) and Thomas (2012), can be viewed in two dimensions, namely the primary dimension that includes differences in terms of age, gender, language, ethnicity or national boundaries, and physical abilities; and secondary dimension that includes differences in values, religion or belief, educational background, marital status and work experience. From the above definitions, it can be concluded that understanding and the scope of diversity cover a number of aspects and not only cover the narrow sense of the first layer but include all individual attributes that make individuals different from one to another, both attributes which are easily detected and difficult to detect. According to Strachan (2012), there are three benefits of having diverse employees, namely: (1) the organization can hire qualified employees from different cultural backgrounds and various community groups, (2) organizations that have employees with different backgrounds will be able to attract consumers from different cultural backgrounds especially in the current globalization era, (3) diverse employees also have a rich variety of information, experiences, perspectives and creativity so as to form a reliable work team. In Cox and Blake study (1991), it was found that organizations which are able to attract, retain, and motivate people with diverse cultural backgrounds can create a competitive advantage in the cost structure through the maintenance of high quality human resources. Diversity management has now become a strategic business issue for organizations worldwide (Wilson & Iles 1999) since the rapid globalization has increased the diversity in the workplace and increase the importance of diversity management (Shen et al. 2009). The implementation of diversity management (managing diversity) in the workplace should be a concern of each organization. Diversity management according to TingToomey and Chun (2005) are: 'It is about developing a creative mindset to see things from different angels without rigid prejudgement’.

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Thus, diversity management means managing diversity contained in the work force. Diversity management practices for examples: to promote justice perceptions of organization and inclusion, reject discrimination (Kosseck & Pitchler, 2006), to appreciate the uniqueness and diversity of each employee (Lumadi, 2008). Diversity Management supports the concept of EEO (Equal Employment Opportunity) which refers to efforts to ensure that all individuals have an equal opportunity of employment, regardless of race, color, religion, sex, age, disability, or national origin. Therefore, it can create a fair and inclusive workplace for the members of an organization. Results of previous studies such as described in Jabbour et al, (2011) showed that the diversity management in organization can have an impact on: (1) increased productivity since the minority can appreciate the opportunity to work employment and they work with high motivation, (2) increased creativity and innovation of the organization; (3) the creation of client loyalty (4) improving positive image of the company; and (5) improving the organizational climate by making it more inclusive to the differences and innovative. A number of other studies found the impact of DM on the organization, such as improving organizational performance (Dwyer, Richard & Chadwick, 2003; Barnett, Dwyer, and Chadwick, 2004; Robertson, 2007; Winston, 2010), increasing the company's reputation (Ollapally & Bhatnagar, Chadwick, 2003; Frink et. al., 2003, Richard et. al., 2004; Robertson, 2007; Winston, 2007, 2010), increasing innovation and creativity (Jackson, Joshi, & Erhardt, 2003), enhancing the image and services of the company, (Ely & Thomas, 2001) and improve the quality of work (Pitts, 2009). Managing diversity in the workplace should be a concern of every organization. However, not all organizations realize the power and benefits of having employees with varied background and characteristics even more many organizations tend to overlook the power and advantages of diversity (Thomas, 2012). In fact, if the diversity is not managed properly, it can lead to conflict and divisions within the organization (Adler, 2003; Williams & O'Reilly, 1998). Concern to the diversity management issue is presumably relatively low for its application to the companies in Asia. This was confirmed by Budhwar and Debrah (2009), in their article entitled: "Future research on the Human Resource Management Systems in Asia", which encouraged for more research on the DM dynamics in Asian context, particularly explore the different mechanisms adopted by company to manage diversity and to demonstrate the challenges and obstacles faced by companies and decision makers. It is more important for the organizations in

Southeast Asia region in order to meet the implementation of the ASEAN Economic Community that is imposed no later than 2015 to be more critical to look at the issue of diversity within the organization. It is associated with the emergence of diverse workers in a variety of organizations in the ASEAN region, including Indonesia in connection with MEA above. The Indonesian archipelago has a population of 251 857 940 inhabitants, 1,128 ethnic groups (JPNN, 2010) and 546 languages, and this data will probably continue to grow because the research has not been done (Kompas.com, Sept. 1, 2012). These data illustrate the extent of diversity in Indonesia, and of course it will be reflected in companies operating in Indonesia. In order to manage diversity effectively, an organization must embrace diversity, diverse, and has to change the organization to accommodate the diversity and make it an integral part of the organization (Gilbert, Stead, and Ivancevich, 1999). 2. History and Development of DM studies

Research on diversity was initially more focused on gender diversity which began before the 1990s that focused mainly on the issues of discrimination and prejudice as a different one from the majority of the others. Antecedents studied included personality characteristics (relating to diversity attitudes), the number of women company directors, gender task orientation, the group's success, the company's statement on diversity in the website, and the company's commitment to diversity as reflected in the recruitment materials (Bilimoria, 2006; Karakowsky, McBey, & Chuang, 2004; Lee & Farh, 2004; Rau & Hyland, 2003; Singh & Point, 2006). In gender studies, negative effects for women on performance ratings (Tsui & O'Reilly, 1989) and salary discrimination (Bielby & Baron, 1986) were reported. Furthermore, a growing issue in research studies related to the concept of diversity management was were more macro-national, which was the researchwere executed by looking at the diversity issue at the level of a country. Studies of diversity in a number of countries that have been made include: Brazil (Jabbour, Gordono, de Oliveira, Martines & Battistelle, 2011), Australia (Jawad and Robins, 2010), Denmark (Risberg & Sødenberg, 2008), Germany (Süß and Kleiner, 2008), Finland (Merilainen, Tienari, Katila, and Benschop, 2009), Korea and Japan (Emiko Eunmi Magoshi and Chang, 2009), Sweden and Thailand (Pongpayaklert & Woraphan Atikomtrirat, 2011), Malaysia (Abdullah, 2007 ), and India (Cooke and Saini, 2010).

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Study DM Studis have been is growing and in the 2000s, research began to lead to the study of the Diversity Management (DM) impact of Diversity Management (DM) in the context of the organization or at the level of Mezo-organization, such as improving organizational performance (Dwyer, Richard & Chadwick, 2003; Richard Barnett, Dwyer, and Chadwick, 2004; Robertson, 2007; Winston, 2010), enhance the company's reputation (Ollapally & Bhatnagar, Chadwick, 2003; Frink et. al., 2003, Richard et. al., 2004; Robertson, 2007; Winston, 2007, 2010), increasing innovation and creativity (Gebert, 2004; Jackson, Joshi, & Erhardt, 2003), enhancing the image and services of the company, (Ely & Thomas, 2001) and improvinge the quality of work (Pitts, 2009). Furthermore, several studies have also shown a positive correlation between companies that received the Diversity Award at and the company's financial performance (Roberson & Park, 2007; Weigand, 2007; Wright, Ferris, Hiller, & Kroll, 1995) as well as the existence of a positive correlationship between the company value of the firm toto the presence of minority and women in the board of directors (Carter, Simkons & Simpson, 2003). Studi DM semakin berkembang dan pada tahun 2000-an, penelitian mulai mengarah pada studi dampak Diversity Management (DM) dalam konteks organisasi atau pada aras mezo-organisasi, seperti meningkatkan kinerja organisasi (Dwyer, Richard & Chadwick, 2003; Richard Barnett, Dwyer, dan Chadwick, 2004; Robertson, 2007; Winston, 2010), meningkatkan reputasi perusahaan (Ollapally & Bhatnagar, Chadwick, 2003; Frink et. al., 2003, Richard et. al., 2004; Robertson, 2007; Winston, 2007, 2010), meningkatkan inovasi dan kreativitas (Gebert, 2004; Jackson, Joshi, & Erhardt, 2003), meningkatkan citra dan layanan perusahaan, (Ely & Thomas, 2001) dan meningkatkan kualitas kerja (Pitts, 2009). Selanjutnya beberapa penelitian juga menunjukkan adanya korelasi positif antara perusahaan yang memperoleh Diversity Award dengan kinerja keuangan perusahaan (Roberson & Park, 2007; Weigand, 2007; Wright, Ferris, Hiller, & Kroll, 1995) serta adanya hubungan positif antara nilai perusahaan terhadap kehadiran minoritas dan perempuan dalam dewan direksi (Carter, Simkons & Simpson, 2003). Searah dengan semakin berkembangnya penelitian DM, selanjutnya muncul sejumlah studi yang menyoroti DM dalam konteks micro-individu yang mengarah pada perilaku individu dalam memandang isu keragaman, seperti Syed dan Ali (2005), Syed (2008 ), Junankar dan Mahuteau (2005), Bevelander (1999), De Cieri dan Kramar (2005), Syed (2007), Watson (1996), Bourke (2004), Parr dan Guo (2005).

In keeping line with the development of diabetes DM researchstudies, and then came a number of studies that highlight the micro-DM in the context of micro-individuals that lead to the individuals behavior of individuals in looking at the diversity issue of diversity, such as Syed and Ali (2005), Syed (2008), Junankar and Mahuteau (2005), Bevelander (1999), De Cieri and Kramar (2005), Syed (2007), Watson (1996), Bourke (2004), Parr and Guo (2005).

3. Research Gap in the Study of DM

From a review of previous studies there wereobtained some gaps, first, the study of DM was more a concern in developed countries like the USA and Europe. As a result, the context of the discussion and research study were in the context of western culture and diversity issues in western countries. In fact studies showed that the research literature in Asia wais still relatively limited, whereas diversity issues are prevalent in Asia because Asia is a multicultural country (Brutton, 2008; Chen, 2010, Gong & Ahlston, 2011). There are only a limited number of studies of DM in Asian countries such as Malaysia (Abdullah, 2007; Sriramesh and Vercic, 2003), Korea and Japan (Emiko Eunmi Magoshi and Chang, 2009), India (Cooke & Saini, 2010), and Thailand (Pongpayaklert & Woraphan Atikomtrirat, 2011). In DM studies of DM in Korea and Japan, the workers - workers, especially women, hadve trouble in finding a full-time position and it wais difficult to get a managerial position (Emiko Eunmi Magoshi & Chang, 2009).

Dari ulasan terhadap penelitian terdahulu diperoleh beberapa gap, pertama, studi tentang DM lebih banyak menjadi perhatian di negara maju seperti USA dan Eropa. Akibatnya konteks pembahasan dan penelitian lebih pada konteks budaya barat dan isu keragaman di negara barat. Pada kenyataannya studi literatur memperlihatkan penelitian di Asia masih relatif terbatas, padahal isu-isu diversitas banyak terjadi di Asia karena Asia merupakan negara multikultur (Brutton, 2008; Chen, 2010, Gong & Ahlston, 2011). Hanya terdapat sejumlah penelitian terbatas tentang DM pada negara negara di Asia seperti: Malaysia (Abdullah, 2007; Sriramesh and Vercic, 2003), Korea dan Jepang (Emiko Magoshi dan Eunmi Chang, 2009), India (Cooke & Saini, 2010), dan Thailand (Pongpayaklert & Woraphan

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Atikomtrirat, 2011). Dalam penelitian DM di Korea dan Jepang, pekerja – pekerja, terutama perempuan, mengalami kesulitan menemukan posisi penuh waktu dan sulit untuk mendapatkan posisi manajerial (Emiko Magoshi & Eunmi Chang, 2009). Secondly, the future studies onnext DM are advised to pay more focus more on the impact of DM on the organization performance of the organization and individual behavior. For this to happen then the DM practice that consists of a set of formal practices must be internalized, developed and implemented by organizations in managing diversity effectively among all stakeholders of the organization. This is similar to the standpoint of institutional theory and resource-based view which believes that a well-managed diversity can be a unique and competitive advantage (competitive advantage) ) of the company (Yang & Konrad, 2011). Kedua, studi DM kedepan disarankan untuk lebih fokus pada dampak DM terhadap kinerja organisasi dan perilaku individual. Agar hal ini bisa terjadi maka praktek DM yang terdiri dari seperangkat praktek formal harus diinternalisasi, dikembangkan dan dilaksanakan oleh organisasi dalam mengelola keragaman secara efektif di antara semua pemangku kepentingan organisasi. Hal ini senada dengan sudut pandang teori Institusional dan Resource based view yang mempercayai bahwa keragaman yang dikelola dengan baik dapat menjadi keunikan dan keunggulan kompetitif (competitive advantage) perusahaan (Yang & Konrad, 2011). Ketiga, berkaitan dengan DM, arah penelitian ke depan disarankan untuk lebih melihat keterkaitan dengan penerapan DM secara nyata dalam kebijakan dan praktek manajemen di perusahaan sehingga akan diperoleh dampak positif yang nyata. Beberapa studi terdahulu (Fleury, 1999; Jabbour et. al., 2011), menunjukkan tantangan dalam penerapan manajemen keragaman di organisasi adalah menginternalisasikannya dalam Human Resource Management (HRM) secara terpadu. HRM dalam hal ini mencakup kegiatan perencanaan, penarikan, pelatihan, dan pengembangan sumber daya manusia untuk memperoleh karyawan yang berkinerja baik untuk jangka panjang (Dessler, 2010).

(Fleury, 1999; Jabbour et. Al., 2011), illustrateding that the challenges in the implementation of diversity management in organizations wais internalize it in Human Resource Management (HRM) in an integrated manner. HRM in this case includes planning activities, withdrawal, training, and development of human resources to acquire employees who are performing well for the la long term (Dessler, 2010). Studies that have already exist are very limited to look at the correlationship of DM with management functions within the organization, particularly in the application of HRM implementation. The issue of diversity processing is a major challenge for HRM in modern organizations (Cox, 1993; Kossek and Lobel, 1996, in Yvonne Benschop, 2001). Budhwar & Debrah, 2008, advocated for to correlatehooking DM into HRM policies and practices given the diversity of issuees is directly related to the individual which ias the main area that is managed by HR. Significant challenges in managing diversity is the involvement of human resource management (Fleury, 1999; Jabbour and Santos, 2008), because they it can determine the details of HR practices (Myers, 2003, in Jabbour et al., 2008) in which diversity can be incorporated into the set of HR practices that ensure alignment between HR strategy and DM objectives DM. And the issue of good workforce diversity practice is goodpractice in the field of human resources is believed to improve the performance of the employees and the organization (Hall and Parker, 1993). Studi-studi yang sudah ada masih sangat terbatas melihat keterkaitan DM dengan manajemen fungsi dalam organisasi, khususnya penerapan dalam HRM. Isu pengolahan keragaman merupakan tantangan utama bagi HRM dalam organisasi modern (Cox, 1993; Kossek dan Lobel, 1996, dalam Yvonne Benschop, 2001). Budhwar & Debrah, 2008, menganjurkan untuk mengaitkan DM ke dalam kebijakan dan praktek HRM

Third, with regard to DM, the direction of future research is recommended to better see the correlationnnection with the application of DM implementation obviouslysignificantly in policy and practice in the company management of the company so that it will be obtained a real positive impact will be obtained. Several previous studies

mengingat isu diversitas terkait langsung dengan individu yang merupakan area utama yang dikelola HR. Tantangan yang signifikan dalam pengelolaan

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keragaman adalah keterlibatan manajemen sumber

(Dagher, D'Netto dan Sohal 1998; D'Netto dan Sohal 1999).

daya manusia (Fleury, 1999; Jabbour dan Santos, 2008), karena mereka dapat menentukan rincian praktek HR (Myers, 2003, dalam Jabbour et al., 2008) dimana keragaman dapat dimasukkan ke dalam himpunan praktek HR yang menjamin keselarasan antara strategi HR dan tujuan DM. Dan isu Praktek keragaman tenaga kerja yang baik di bidang sumber daya manusia diyakini dapat meningkatkan kinerja karyawan dan organisasi (Hall dan Parker, 1993).

4. Diversity Management and Human Resource Management.

Diversity in the workplace is often considered by researchers and practitioners as a 'double-edged sword because it can result in gains and losses for the organization (Shen, Chanda, D'Netto and Monga 2009). The advantages of diversity itself are primarily to allow access for changing the different markets (Cox and Blake, 1991; Gardenswartz and Rowe 1998; Iles, 1995), solutions-better quality solution for brainstorming tasks and displays more cooperative behavior (McLeod, Lobel and Cox 1996; Wilson and Iles 1999). While the losses are is the tendency of an increasinge in conflict, increased training costs, disruption of communication, lack of cohesion and high employee turnover (Dagher, D'Netto and Sohal 1998; D'Netto and Sohal 1999). Keragaman di tempat kerja sering dianggap oleh para peneliti dan praktisi sebagai 'pedang bermata ganda karena dapat menghasilkan keuntungan dan kerugian bagi organisasi (Shen, Chanda, D'Netto dan Monga 2009). Keuntungan dari keragaman itu sendiri terutama memungkinkan akses untuk mengubah pasar yang berbeda (Cox dan Blake 1991; Gardenswartz dan Rowe 1998; Iles 1995), solusi-kualitas yang lebih baik untuk tugas-tugas sumbang saran dan menampilkan perilaku yang lebih kooperatif (McLeod, Lobel dan Cox 1996; Wilson dan Iles 1999). Sedangkan kerugiannya adalah kecendrungan peningkatan konflik, biaya pelatihan meningkat, gangguan komunikasi, rendahnya kohesi dan turnover karyawan tinggi

Lack of understanding and implementation and awareness of DMdiabetes can have a direct impact on the system of recruitment, selection, appraisal, compensation and career management of individuals within the organization. Company A company can be fundamentally can be seen as a pool of human resources and capabilities that form the basis of competitive advantage (Barney, 1995; Wright, Dunford & Snell, 2001). Competitive human resource must have requirements such as must have valuable, rare and difficult to imitate. With theise characters, the company will have a sustainable competitive advantage (Barney, 1991; Barney & Wright, 1998;. Wright et al, 1994; Collis & Montgomery, 1995). Research on the influence of diverse recruitment policies on employee performance by Adler (2005) found that diversity couldcan improve performance and be was able to recruit employees from the reach of the wider labor market wider to give the company a bigger talent pool. Rendahnya pemahaman dan penerapan serta kesadaran akan DM dapat berdampak langsung pada sistem rekrutmen, seleksi, penilaian kerja, pemberian kompensasi maupun manajemen karir individu dalam organisasi. Perusahaan secara fundamental dapat dilihat sebagai kolam sumber daya manusia dan kemampuan yang menjadi dasar keunggulan kompetitif (Barney, 1995; Wright, Dunford & Snell, 2001). Sumber daya manusia yang kompetitif harus memiliki syarat bernilai, langka dan sulit di tiru. Dengan karakter ini maka perusahaan akan memiliki keunggulan bersaing dan berkelanjutan (Barney, 1991; Barney & Wright, 1998;. Wright et al, 1994; Collis & Montgomery,1995). Penelitian tentang pengaruh kebijakan perekrutan beragam terhadap kinerja karyawan oleh Adler (2005) ditemukan bahwa keragaman dapat meningkatkan kinerja dan dapat merekrut karyawan dari jangkauan pasar tenaga kerja yang lebih luas sehingga memberikan perusahaan kolam bakat yang lebih besar. The differences will create a productive environment in which everyone feels valued, their talents are fully utilized and institutional objectives are met (Kandola & Fullerton, 2002, in Lumadi, 2008). Role to create the a good conditions for DM the application implementationof DM in the organization must be played by the HR function through the application of HR policies and practices that with have been buried in it the values and rules of kaedah DM norm within. Therefore, DM internalization of DM in the HRM policies and

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practices is very important to be carried out by the company is very important in the present and the future as increasingly diverse workforceworkers diverse. Perbedaan-perbedaan akan menciptakan lingkungan yang produktif di mana semua orang merasa dihargai, bakat mereka dimanfaatkan sepenuhnya dan tujuan institusional terpenuhi (Kandola & Fullerton, 2002, dalam Lumadi, 2008). Peran untuk menciptakan kondisi yang mendukung penerapan DM dalam organisasi harus di perankan oleh fungsi HR melalui penerapan berbagai kebijakan dan praktek HR yang didalamnya telah disemayamkan nilai-nilai dan kaedah-kaedah DM. Oleh karena itu internalisasi DM dalam kebijakan dan praktek HRM sangat penting dilakukan oleh perusahaan dimasa kini dan masa depan seiring dengan semakin beragamnya tenaga kerja.

effectively manage diversity and achieve organizational goals (Shen et al, 2009). CorrelationLinkages between HRM practices and DM practices can be seen in the following table .

Table 1. Correlation between HR Practices and Diversity Management Human resources practices Human resources planning

Several previous studies (Fleury, 1999; Jabbour et. Al., 2011), illustrateding that the challenges in the implementation of diversity management in the organization wais the involvement of human resource management in an integrated manner. Human resource management includes planning, recruitment, training and development of human resources to acquire employees with good performanceho are performing well for athe long term (Dessler, 2010). Various HR diversity management programs will enable the company to

and

Integrating resources

human

Performance assessment

Thus it is clear that the implementationadoption of the practice o of diversity management practices areis closely related to the strategy and practice of HRM in the organization. This is also supported by Jabbour et.al, (2011; Fleury, 1999; Hanashiro and Carvelho, 2005; Lockwood, 2005; Thanem 2008) who believeds that the HRM department wafis the most relevant to HRM practice diversity management in the organizations. AS studiesy conducted by Richard et.al (2002) found found that HRM practices are essential in supporting the implementation success of the implementation at the organizational level. Dengan demikian jelas bahwa penerapan praktek praktek manajemen keragaman sangat erat berkaitan dengan strategi dan praktek HRM pada organisasi. Hal ini juga didukung oleh Jabbour et.al, (2011; Fleury, 1999; Hanashiro dan Carvelho, 2005; Lockwood, 2005; Thanem, 2008) yang meyakini departemen HRM adalah yang paling relevan mempraktekkan manajemen keragaman dalam organisasi. Studi yang dilakukan Richard et.al (2002) menemukan praktek HRM sangat esensial dalam mendukung kesuksesan penerapan pada tingkat organisasi.

Recruiting selecting

Remuneration incentives

and

Hygiene and work safety

Professional personal development

and

Human resources audit and control

Alignment of human resources practices with organizational diversity management Policies on the inclusion and retention of individuals included in the diversity concept Setting aside vacancies and job positions for minorities Elaborate actions of integration combined with actions of recognition to attract the attention of the collaborators Assessment with homogenous criteria and feedback Egalitarian remuneration, promotion, and incentive policies Better work conditions and changes in the organizational layout to guarantee accessibility Practices development Everybody

of personal accessible to

Control and order actions related to the inclusion

And iIt is widely recognized that HRM practices affect organizational performance through their influence on the attitudes and behavior of the employees, for example, Organizational Citizenship Behavior or OCB (Bowen and Ostroff, 2004; Nishii, Lepak and Schneider, 2008; Pare and Tremblay 2007). However, if the implementation of HRM practices perceived by employees only for the purpose of complying with the laws, the HRM practices will not result in the positive attitude and behavior of the employee. Conversely, if the implementation of HRM practices is perceived by the employees as outside organizational justice then it will reduce OCB (Nishii et al. 2008).

Beberapa studi terdahulu (Fleury, 1999; Jabbour et. al.,

2011),

menunjukkan

tantangan

dalam

penerapan manajemen keragaman di organisasi

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adalah pelibatan manajemen sumber daya manusia Organizational Strategy

secara terpadu. Manajemen sumber daya manusia mencakup

kegiatan

perencanaan,

Socio cultural attitude

Employe Engagement

rekrutmen, Turnover

Awarness of the need

HR Policies Practices

pelatihan dan pengembangan sumber daya manusia untuk memperoleh karyawan yang berkinerja baik

Leader

Organizational Culture

Diversity Management

Employer Branding

untuk jangka panjang (Dessler, 2010). Berbagai program pengelolaan keragaman SDM

akan

memungkinkan perusahaan untuk secara efektif mengelola

keragaman

dan

mencapai

tujuan

organisasi (Shen et al 2009). Kaitan praktek HRM

Source: Anita Ollapally & Jyotsna Bhatnagar, 2009,. "The Holistic

dan DM dapat dilihat pada tabel berikut

5. DM Internalization DM Strategies in HRM Policies and Practices DM Iinternalization DM into HRM policies and practices in an organization can not be performed immediately. According to Thomas (2000) there were three different ways to incorporate the DM implementation in HRM practices, namely: (1) find differences that can stimulate better relations between employees and can help employees to accept and understand the diversity, (2) encourage cultural change to a new organizational culture that respects diversity management practices, (3) make the DM as a structured process to achieve competitive advantage through employee diversity groups. Ollapoly and Bhatnagar (2009) suggested the need for a number of interrelated factors to internalize DM in HR policies and practices as described in the following image

Figure 1. The Diversity Management framework

First, the support of the organization and high commitment of top management are needed for the implementation of DM in an organization such as Awareness of the need of the importance of DM for the organization. This awareness can be realized in the form of diversity standard setting created by the company as a framework for the diversity practice. A company can form a diversity council/committee that includes representatives of the seniors and a team of employees in all branches, in order to achieve the dedicated efforts for the diversity management. Furthermore, the existence of Leader element and organizational strategies to implement DM are needed in order to internalize DM in the policies and practices within the organization. Leaders include Leadership commitment and accountability for change where the entire parts of an organization from the top leaders to the supervisors are responsible to bring changes to inclusivity. While the organizational strategies or strategic plans and objectives are the organizational strategy plans that support the DM implementation within the organization so they can create a dynamic culture concerning to DM. HR Policies and Practies are integrated HR system where HR has a major role to revive the DM culture in the organization. There is a strong focus on diversity in all processes and HR practices. Supporting System and Resources are good investment in the form of systems and people with the hope to lead to the creation of a diverse workplace and an inclusiveness culture. System and team are formed to ensure the focus and the smooth running of the plans that have been made.

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The existance of awareness on the need to manage diversity, with the help of HR functions, will help the leaders to implement practices and policies (based on the organization strategy) to be performed together. But the success of these practices also depends on the culture in the organization and people prejudice as a result of socio-cultural background differences. If a company succeeds in managing this diversity and to create a culture of inclusion, it will not only result in employee engagement to the organization, but also can establish the reputation of the company or the employee branding. Such organization can retain and attract competent and qualified employees. Researches showed that diversity awareness training could help to develop diversity positive attitudes of the employees and increase the effective integration of diverse group members (Rynes and Rosen 1995). Various approaches have been proposed in the literature, such as top-down strategy training, linking the trainings to the organizational strategic goals and engage an outside facilitator in diversity training, to improve the effectiveness of diversity training (Kossek et al 2005;. Roberson, Kulik and Pepper 2003 ). The researchers also found that professional development and career planning were the areas where discrimination was common. Therefore, promotion practices should consider the diversity issue notes to ensure equal opportunities and nontraditional managers, including, for example, women and ethnic minorities, in the promotion panel (Richard and Kirby 1999). It is to include a certain ratio of women and ethnic minorities in the management team and provide a mechanism for effective mentoring to prepare non-mainstream managers to take on the demands of managerial tasks (Loden and Rosener 1991; Ragins 2002; Morrison 1992).

6. Conclusion Managing diversity in the workplace should be a part of the organizational culture. In order fto perform good diversity management, we need the involvement of top management in order to encourage and support creativity by helping their followers and organizations to be ready to change. Appreciating and acknowledging diversity are critical to maintain competitive advantage. Diversity management practices can increase productivity, effectiveness, and sustainable competitiveness. Organization that promotes and

becomes a diverse workplace will attract and retain quality employees and increase the customer loyalty. Failure to manage diversity in terms of race, gender, education level, profession, tribal affiliation, religious affiliation often leads to differences in promotions, salary payment, training, turnover rate, mutual acceptance, job satisfaction and other forms of inequality. In a successful organization, the strategy should consist of managing changes, the formation of appropriate policies and procedures and put targets for diversity related to competencies (Allen and Montgomery in Munjuri, 2012). Application of diversity approach should be integrated in the practices and functions of HRM, ranging from planning, recruitment, selection, training and development, performance evaluation and promotion. development, performance appraisal and promotion.

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