Cultural Diversity at Municipalities

Cultural Diversity at Municipalities

Not an Option but a Necessity

University of Groningen,

Faculty of Management and Organization,

Master thesis Msc of HRM,

First Master thesis supervisor: Mevr. prof. mr. dr. E.M. Kneppers-Heynert

Second Master thesis supervisor: drs. J. van Polen

ACKNOWLEGDEMENTS

The thesis in front of you is written to finalize my master degree of HRM for the University of Groningen. The subject of my thesis is cultural diversity at municipalities. I have started this research in April 2007 and finalized the research in March 2008

The composition of the society has changed due to the increase of ethnic minorities. With the first work immigrants, 50 years ago the Netherlands turned into a multicultural society. These people with a variety of cultural backgrounds shape the Netherlands nowadays. The Dutch government has a policy that they want to be a reflection of the ‘multicultural’ Dutch population (A&O fund, 2003 and Ministry SZW). Therefore diversity management is an important aspect for the government and the municipalities

During my research I have conducted several interviews. I want to thank the people I have interviewed for the information and time which they have made available for me.

In particularly I want to thank my thesis supervisor mevr. E.M. Kneppers-Heynert for her supervision and for the very interesting and constructive conversations we had concerning my research. I also like to thank dhr. J. van Polen for being my second supervisor.

My special thanks for my father for the clarifying feedback he has given me. Finally I thank my partner for the mental support to complete my research.

Groningen, 9 May 2008

ABSTRACT

Nederland is een vergrijzende samenleving met meer dan 200 diverse nationaliteiten. Hierdoor verandert de samenstelling van de arbeidsmarkt. Daarnaast is er een toename in de vraag naar arbeid door een tekort aan arbeidskrachten op de arbeidsmarkt. De consequentie is dat over enkele jaren alle beschikbare arbeidskrachten nodig zijn om de economie op peil te houden. Organisaties en dus ook gemeenten ontkomen niet aan de huidige veranderingen in de maatschappij en de arbeidsmarkt. De keuze om hierop in te spelen is niet de vraag. De vraag is hoe je als gemeente in kan spelen op deze culturele veranderingen en hoe deze veranderingen bij kunnen dragen aan het beleid van de gemeente. In andere woorden diversiteit is een noodzaak, geen optie.

In dit onderzoek wordt cultureel diversiteitsbeleid binnen gemeenten onderzocht (gericht op het interne beleid van de gemeenten, de gemeente als werkgever). Ook gemeenten hebben te maken gekregen met de ontwikkelingen in de samenleving. Binnen gemeenten is er echter niet sprake van een commerciële afzetmarkt, maar wel van dienstverlening naar burgers (externe klanten) en medewerkers (interne klanten).

De probleemstelling

Er zijn diverse onderzoeken uitgevoerd naar het succes van culturele diversiteit. In onderzoeken van o.a. Cox, 1993, Van Twuyver, 1995, Derveld, 1995b en Van Vught, 1995 komt naar voren dat diversiteit management tot succes kan leiden op het gebied van creativiteit, probleemoplossend vermogen en communicatie. De vraag is of deze onderzoeken en de uitkomsten ook aansluiten bij organisaties als gemeenten.

In dit onderzoek staat de volgende vraag centraal; Wanneer is diversiteit management

succesvol binnen gemeenten?

Het onderzoek

Resultaten

Volgens de resultaten uit het literatuuronderzoek zijn er vier voorwaarden voor het succes van diversiteitsbeleid: openheid binnen de organisatie voor culturele verschillen, draagvlak creëren op alle lagen in de organisatie, ontwikkelen van een doel en visie en integratie in het HRM-beleid.

Uit het praktijkonderzoek blijkt dat de deskundigen de vier voorwaarden voor succes onvolledig vinden en dat het met de volgende voorwaarden uitgebreid kan worden:

- bewustzijn van diversiteit en de noodzaak om een diversiteitsbeleid toe te passen - integratie van etnische minderheden

- een strategisch en geïntegreerd diversiteitsbeleid

- geen doelgroepenbeleid maar gelijke behandeling van alle werknemers

Conclusies/bevindingen

Een belangrijk onderzoeksresultaat vanuit mijn onderzoek is dat lokale situatie, projecten, doelstellingen, strategieën en het ontwikkelingstempo zodanig uiteenlopen dat per gemeente een op maat gesneden aanpak nodig is. In alle gevallen is de invloed van de specifieke gemeentelijke situatie op de ontwikkeling van diversiteitsbeleid en -praktijk duidelijk zichtbaar.

TABLE OF CONTENT

ACKNOWLEGDEMENTS ___________________________________________________ 2 ABSTRACT _______________________________________________________________ 3 TABLE OF CONTENT ______________________________________________________ 5 1. INTRODUCTION ________________________________________________________ 7

1.1 What is the situation? ____________________________________________________ 7

1.2 The Theory _____________________________________________________________ 8

1.3 The Practice ____________________________________________________________ 8

1.4 Aim of the research ______________________________________________________ 9

1.5 Read indicator _________________________________________________________ 10 2. METHODOLOGY _______________________________________________________ 11 2.1 Aim of Research ________________________________________________________ 11 2.2 Target Group __________________________________________________________ 11 2.3 Research Questions _____________________________________________________ 12 2.4 Methods_______________________________________________________________ 12

2.5 Validation of the Methodology ____________________________________________ 13

3. THEORY OF CULTURAL DIVERSITY _____________________________________ 14

3.1 Diversity a Definition ____________________________________________________ 14

3.1.1 Diversity management/ policy_____________________________________________________ 15

3.2 History of Managing Diversity ____________________________________________ 15

3.3 Model of T.H. Cox ______________________________________________________ 16

3.4 Model of Allen and Montgomery __________________________________________ 18

3.5 Advantages of Diversity Management ______________________________________ 19

3.6 Obstructions of cultural diversity__________________________________________ 23

3.7 HRM in Relation to Cultural Diversity Management _________________________ 24

3.8 Conclusion ____________________________________________________________ 26

4. EMPIRIC: DIVERSITY MANAGEMENT IN DUTCH MUNICIPALITIES IN

GENERAL _______________________________________________________________ 28 A&O Fund (Dutch Labour Market and Education Fund)__________________________ 28

4.1 The research ___________________________________________________________ 28

4.2 Diversity Policy at Municipalities__________________________________________ 29

4.2.1 Presence of a diversity policy _____________________________________________________ 29 4.2.2 Design of diversity policy ________________________________________________________ 29

4.3 Impact of Cultural Diversity Policy ________________________________________ 29

4.4 Success factors and support for cultural diversity policy_______________________ 30

4.5 Reasons for having or not having a diversity policy ___________________________ 30

5 : EMPIRIC: DIVERSITY MANAGEMENT IN THREE LARGE DUTCH

MUNICIPALITIES ________________________________________________________ 32 (ROTTERDAM, AMSTERDAM, UTRECHT) ___________________________________ 32

5.1 Municipality of Rotterdam, The Multicolored City ___________________________ 32

5.1.1 Context ______________________________________________________________________ 32 Program ‘The Multicolored City’ _________________________________________________________ 33 5.1.2 Interviews ____________________________________________________________________ 34 5.1.3 Conclusion____________________________________________________________________ 34

5.2 Municipality of Amsterdam, The Power of a Diverse City _____________________ 36

5.2.1 Context ______________________________________________________________________ 36 5.2.2 Interviews ____________________________________________________________________ 37

5.3 Municipality of Utrecht, No Colour Blindness, but a View for Diversity __________ 38

5.3.1 Context ______________________________________________________________________ 38 5.3.2 Interviews ____________________________________________________________________ 38 6. EMPIRIC: DIVERSITY MANAGEMENT IN THE MUNICIPALITY OF GRONINGEN _________________________________________________________________________ 40

6.1 Context _______________________________________________________________ 40

6.2 Success Factors Cultural Diversity Policy ___________________________________ 41

6.3 Objectives for Diversity Policy ____________________________________________ 41

6.4 HRM and Diversity Policy _______________________________________________ 41

7. CONCLUSIONS OF DIVERSITY MANAGEMENT IN DUTCH MUNICIPALITIES 43

7.1 Reflection on research questions __________________________________________ 44

7.1.1 What is cultural diversity management?_____________________________________________ 44 7.1.2 What determines the success of diversity management? (what are the strategic advantages of cultural diversity and what are the obstructions of cultural diversity?)___________________________________ 44 7.1.3 How can HRM policy offer support to a cultural diversity policy?________________________ 45 7.1.4 Diversity policy: differences between theory and practice. ______________________________ 46

7.2 Recommendation _______________________________________________________ 47

8. DISCUSSION ___________________________________________________________ 48 REFERENCES ___________________________________________________________ 50 Books _______________________________________________________________________ 50 Articles ______________________________________________________________________ 52 Other documents/ research _____________________________________________________ 53 Internet______________________________________________________________________ 53 APPENDIX 1: RESEARCH METHOD A&O FUND __________________________ 54

1. INTRODUCTION

As an introduction into the research to cultural diversity this chapter present a brief overview of the current situation in the Netherlands. This will lead to the research question which will be briefly explained. During the research different terms are used for people with different backgrounds. These terms are ethnic minorities, immigrants and foreign employee; they all will be used together in this thesis.

1.1 What is the situation?

With the first work immigrants, 50 years ago (Bakas & Groenewold Dost, 1993) the Netherlands turned into a multicultural society. These people with a variety of cultural backgrounds shape the Netherlands nowadays. All these different persons need the possibility to get equal chances on the labour market. Yet from the practice it appears that it is not always the case. The integration of newcomers in the labour market does not always come easy and can in some cases even lead to social unrest. This is mentioned in the ‘Trendnota Arbeidszaken (2005:33)’. Immigrants are part of the vulnerable group on the labour market. From the point of view of the labour market (important aspect of HRM) I became interested to investigate cultural diversity.

Generally the modest participation of the ethnic minority groups in the labour force is considered as an undesirable situation. It is a symbol for the weaker position which the target group takes in the society. From this social background the stimulation of labour force participation of immigrants is desired. On short term leaving the labour potential of ethnic minorities unused has not a too great impact. However the increasing economic growth and productivity will create shortages on the labour market in the Netherlands. The ageing of the labour force will reinforce this development. The older employees will leave the municipalities in the coming ten years. (Trendnota, 2005:5)

1.2 The Theory

Study on workforce diversity has grown fast over the previous fifteen years, starting in the United States of America. However the field of diversity strives to find its own distinguishing influence in organisational literature. The reason of the struggle is because diversity studies can be related to the broader human resources literature. In other words, the study of workforce diversity deals with issues related to organisational behaviour. Also the literature about social issues management focuses on workforce diversity (Thomas, 2006). Because this research is written as a thesis for Master of Science, Human Resource Management, the main focus as regards to literature is the connection between cultural diversity and human resource management.

1.3 The Practice

Globally the workforce becomes diverse and includes people belonging to the following groups: women, immigrants (and those who speak foreign languages), representatives of a minority religion or ethnic group, people of various sexual orientations, members of unconventional family structures including single-parent families, elderly people and, people with disabilities (encyclopaedia: wikipedia).

1.4 Aim of the research

Organizations, including municipalities, will not escape current changes in the society. The world becomes more and more multicoloured. The choice to anticipate on these changes is not an option but a necessity. The question is how the organization can cope with these changes and how these changes can be a part of the policy of the organization.

The aim of this research is to let municipalities be aware of the necessity of diversity management. My purpose is to make diversity management an instrument for the HRM specialist. With this instrument the HRM specialist can place diversity management on the agenda of the board of the municipality. And finally diversity management can be successfully implemented.

As mentioned earlier the extensive attention given to the changes in society and focusing on multicultural society form the basis for this research. A theoretical research in the term ‘cultural diversity’ is the starting point of this research. Cultural diversity includes the group of ethnic minorities (immigrants, foreign employees). The reason for focusing on this part of diversity instead of on all elements of diversity (mentioned in paragraph 1.3) is because a policy for all target groups is too broad. . By putting the focus on cultural diversity it becomes more specific.

Besides the theoretical research of the term ‘cultural diversity’ there appear more and more practice examples concerning cultural diversity. The findings of the literature research will be compared with practice examples of municipalities. These practice examples are obtained both from literature as well as from case studies. The aim of using practice examples is to learn from the experiences of different practices of diversity policies within municipalities and a test of diversity policies in practice. A complete explanation of the type of research will be described in the chapter methodology.

The aim of this research is to find an answer to the following research question:

1.5 Read indicator

This thesis consist of eight main chapters namely, introduction, methodology, literature review, results and conclusions. These eight chapters will explicate the former mentioned research question. In the introduction chapter, the starting point of this research and the research question were highlighted. The next chapter, about methodology, presents the methodological treatment of the research. Here, the undertaken steps are explained and accounted for. The chapter ‘theory of cultural diversity’ consists of a presentation of the theoretical framework of cultural diversity to provide background information about the concept. In the results chapters (chapter four, five and six) the outcomes of my research are presented. The conclusion chapter will connect the theory part of the thesis with the practical part. Finally, in the discussion chapter the dilemmas and limitations are presented.

In figure 1. a visual representation of the research process is presented.

Figure 1:

‘Visual representation of a step by step approach to the key objective of the research’

Theoretical part Empiric part Results

Definition diversity Advantages diversity Diversity management/ Policy History of diversity Obstructions diversity HRM and diversity T h eo re ti ca l fr a m ew o rk Case study Analyzing literature Interview A n a ly zi n g o u tc o m es Theoretical model for a successive and effective diversity management within municipalities

2. METHODOLOGY

This chapter gives an overview of the way how data and information are gathered in order to find an answer to the research question mentioned in the introduction paragraph. First the aim of the research and the target group are taken into consideration. Further on the research questions will be presented. Finally the different methods will be briefly explained.

2.1 Aim of Research

Organizations (including municipalities) cannot escape the current changes in the global world we live in today. It is not a choice anymore whether or not to anticipate on these changes. The question now is how organizations anticipate on these developments. Cultural diversity is a well-known concept in the management literature. Besides the theoretical information about the concept, there are more and more examples about culture diversity in practice. The research is therefore set up in two parts. First of all a theoretical research into the concept cultural diversity. Later on these findings will compared with practice examples. These practice examples are obtained both from existing researches and from my own research. The aim is to learn from the experiences of the different practices of diversity policies within municipalities and to learn from their practices.

2.2 Target Group

To give an extra dimension to my thesis, the municipality of Groningen also forms part of it. In Groningen the representation of ethnic minorities is smaller than in the cities named above. However, it has an active policy concerning diversity management.

2.3 Research Questions

To conduct a thorough research the following main research question is formulated.

“When is diversity management successful within municipalities?”

To operationalize the main research question the following research questions are formulated: - What is cultural diversity management?

- What determines the success of diversity management? (what are the strategic advantages of cultural diversity and what are the obstructions of cultural diversity?)

- How can HRM policy offer support to a cultural diversity policy? - What are the differences between theory and practice?

In the next paragraph the methods for answering these questions are explained.

2.4 Methods

2.5 Validation of the Methodology

To establish my research, I performed firstly the necessary literature study. Much has been written in the field of diversity policy, mostly based on Amercian business organizations. In my research I compared the results of the theory with the empirical results of my case study at the municipalities and answer the question if the theory (based on business in stead of government) is useful for successfully implementing diversity policy in practice in the type of organizations (municipalities) that are subject of my thesis.

The research starts as mentioned above with collecting relevant information (theory) about cultural diversity in the literature. Relevant information is the information related to the first three research questions. In other words, searching for literature concerning advantages and disadvantages of cultural diversity and the relation of a cultural diversity policy with HRM. By answering the first research question (what is cultural diversity management?), theories about diversity management will be described.

3. THEORY OF CULTURAL DIVERSITY

This chapter describes the term diversity. In the previous years much is written about diversity. It is important to have a clear picture of the content of the concept diversity. That is the reason why the terminology around diversity is outlined in this chapter. Later on in the thesis the theory outlined in this chapter will be related to the results and the conclusions of the research.

3.1 Diversity a Definition

From the USA the concept cultural diversity is introduced in Europe. The term diversity or actual managing diversity (Gómez-Meija et al, 2001) has appears first in the American business industry. Both in the USA and in the Netherlands the government started cultural diversity for stimulating labour market participation among all populations. In Europe different cultures are living together and the composition of the society changes due to ageing, limitation in births and more employees from foreign countries (Benschop, 1999). The Dutch government tried to strive towards a proportional representation of minorities in companies. In reality, as a consequence of a wide labour market and conservative employers, there where no possibilities for ethnic minorities (Hornikx and Joskin, 2002).

Diversity can be defined as the host of individual differences that makes people different from, and similar to, each other (Kreitner, Kinicki and Buelens, 2002). According to Roosevelt Thomas Jr. (1996) diversity is not synonymous with differences, but encompasses differences and similarities. In addition, diversity refers to the collective (all-inclusive) mixture of differences and similarities along a given dimension.

Managing diversity of the workforce involves facilitating employees to perform up to their maximum performance. The organisational culture and structure changed in order to provide opportunities for employees to perform at the highest level possible (Kreitner, Kinicki and Buelens, 2002).

3.1.1 Diversity management/ policy

According to Bakas and van Wolde (1997) management of diversity is a specific HRM and

marketing policy, where there will be strived for a real reflection of the staffing with the society with its different populations.

In the different theoretical books (working in multicultural organizations, van Vught 1995 and intercultural management, Burggraaf and van Kooten 1996) not the concept of diversity management is used but the concept intercultural management. According to Derveld (in Vught, 1995): this instrument aims at facilitating management to successfully manage those

aspects of the multicultural society which are important for the organization.

The two definitions, diversity management and intercultural management, cover what is important in managing a diverse reflection of employees within the multicultural society. Diversity management recognizes the total offer of several target groups and intercultural management emphasizes the culture mixture. Because this research is about the target group ethnic minorities within diversity management there is no distinguish between both terms in this research.

3.2 History of Managing Diversity

practices. They conceptualize the diversity management process in terms of a change model including several organizational and HRM practices (Stockdale and Crosby, 2004).

From the USA the concept of cultural diversity is introduced in Europe. Caused by dramatically changes in the composition of the population due to ageing and limited amount of births, the working population becomes more and more diverse by hiring foreign employees (Benschop, 1999). Just like in USA cultural diversity has raised in the Netherlands from a current need of changes in the working population. The literature review will mainly focus on the situation in the Netherlands. However to know the background, some theories from the USA will be presented, starting with a model of Cox. Further on the theory of Allen and Montgomery will be explained.

3.3 Model of T.H. Cox

Cox focuses mainly on racioethnicity (racially and/or ethnically distinctive within the same nationality group), gender and nationality. The reason behind it is that these identities are not changeable, in contrary with work function and religion which can change during a life time.

The model of Cox, presented in figure 2, views certain effects of cultural diversity on individual and organisational outcomes as being due to both the physical and the culture identities of organisation members. It also recognises that there is variability along both of these dimensions within, as well as between, groups. The model proposes that the impact of diversity on organisational outcomes is a complex interaction of individuals and their environment. The environment includes both intergroup and organisational forces. Most studies emphasized the relationship between an employee and the employee’s job or occupation, while the person-organisation relationship has received less attention (Chatman, 1989; Schneider, 1987; House, 1988.).

must therefore give attention to all three levels of analysis. The model is presented below in figure 2.

Figure 2: ‘An Interactional Model of the Impact of Diversity on Individual Career Outcomes

and Organisational Effectiveness’ (Cox, 1993)

The model posits that four individual-level factor (personal identity structures, prejudice, stereotyping, and personality type), three intergroup factors (cultural differences, ethnocentrism, and intergroup conflict), and four organisational context factors (organisational culture and acculturation processes, structural integration, formal integration, and institutional bias) collectively define the diversity climate of an organisation. These individual outcomes, in turn, are expected to impact series of first-order organisational effectiveness measures such as work quality, productivity, absenteeism, and turnover. In non-profit organisations, individual contribution is still crucial in determining the extent to which organisational goals will be achieved.

Diversity Climate Individual-Level Factors - Identity Structures - Prejudice - Stereotyping - Personality Group-Intergroup Factors - Ethnocentrism - Intergroup Conflict Organizational-Level factors

- Culture and Acculturation Process

- Institutional Bias in Human Resource System Individual Career Outcomes Affective Outcomes - Job/Career Satisfaction - Organizational Identification - Job Involvement Achievement Outcomes

- Job Performance Ratings - Compensation - Promotion-Horizontal Mobility Rates Organizational Effectiveness First Level - Attendance - Turnover - Productivity - Work Quality - Recruiting Success Second Level - Market Share - Profitability - Achievement of Formal Organizational Goals

Cultural Differences - Creativity/Innovation

- Problem Solving

- Workgroup Cohesiveness and Communication

Structural Integration

In addition to these indirect effects of group identification, certain aspects of the diversity climate are thought to impact directly on organisational performance. Specifically, the amount of diversity in both formal and informal structures of organisations will impact factors such as creativity, problems solving, and interorganisational communications.

3.4 Model of Allen and Montgomery

The model developed by Allen and Montgomery in 2001 for creating diversity emphasizes theory over practice. The added value of their model in contrary to earlier models is that it conceptualizes the diversity management process in terms of a change model. According to Allen and Montgomery, managing diversity is an ongoing changes process. Important is to manage the change process. Effective diversity management is an organizational development and change process aimed at diversity related competencies in organizational and HRM context (Stockdale and Crosby, 2004).

The model in figure 3 is based on changes models of Schein’s (1992) adaptation and Lewin’s (1951) model of organizational development and change. These models described the activities that must take place to initiate and carry out successful organizational change. The models move from the current state into a new state and refreeze at a desired end state. Allen and Montgomery distinguish several organizational practices at each stage which are the focus of the development process and necessary for effective changes. Illustrations for these practices are at organizational context; top management commitment and vision. Examples at the HRM context are development and training programs and the establishment of divers HR instruments and policies.

Figure 3: ‘Model for Creating Diversity’ (Allen and Montgomery, 2001)

3.5 Advantages of Diversity Management

Essed and De Graaf (2002) situate the following:

“Diversity raises the quality of the product and in this case the service and improves the competitive position of the organization. The labour potential of the future are no longer the white males, there are more different capacities to be found in the labour market. The organization which discovers the added value of ethnic minorities too late, can not fully compare with other organizations (p. 11).”

- Top management commitment and vision - Management symbolic communication and

actions - Goal-setting

- Recruiting and outreach programs - Co-op and internship programs - Training and education

- Mentoring and career development

- Policies and procedures - Job descriptions - Reward system

- Improved creativity and decision-making - More agile and adaptive workforce - Improved ability to market to a broader

demographic

- Increased market share

Unfreezing

Moving

Refreezing

Commercial working, quality projects, customer- and result oriented working are nowadays common goals for the municipalities. The challenge is to effectively use the concept cultural diversity, which is developed for profit organizations with a commercial context, in a non-profit municipal setting. The policy of the municipalities aimed at pursuing the equal chances and giving a good example by being a reflection of the population. To provide service conform the wishes of the customers, the employees and the customers need to understand each other. The service has to aim at the different needs of the different kinds of customers (A&O fonds, 2003).

In most American literature about the theory of cultural diversity (for example Cox, 1993 and 1997) the concept of diversity is justified as a strategic instrument. Most research in the field of diversity measured the effect of a diverse population on management, creativity or for example problem dissolvent capacity (Hornikx and Joskin, 2002). Types of measurement are for example employee satisfaction or customer satisfaction. According to Cox and Blake (1991) research data suggest that managing diversity can generate a competitive advantage for organisations. In their article they linked managing diversity to six elements of business performance namely:

attracting and retaining the best available human talent, enhanced marketing efforts, higher creativity and innovation, better problem solving, more organisational flexibility and costs of human capital.

For organisations to create a sustained competitive advantage by managing diversity of the workforce these are the six elements to consider (Cox and Blake, 1991). When an organisation becomes more diverse there will be more costs in integrating the new employees. The organisation, that handles the integrating well, will generate costs advantages above competitors. Another significant aspect is the one of creativity and innovation. In the turbulent and complex environment of today, organizations need employees which are creative and innovative, in order to reach a sustained competitive advantage. The organisation that favours more diversity and has the best reputation in managing diversity will win the competition for best employees (Cox and Blake, 1991).

They conclude on basis of their research that diversity, in spite of some problems, such as coördination, knowledge of language and integration, can lead to positive impacts. The outcomes of the study of T.H. Cox (1993) based on relevant literature, his own research; his consulting and teaching experience showed that diversity will impact factors such as creativity, problemsolving and interorganizational communications.

The advantages summarized in figure 4 are based on judgements of several Dutch and American authors (Cox, 1993 (described above), Van Twuyver, 1995, Derveld, 1995b en Van Vught, 1995).

Diversity has three types of positive impacts.

First on internal level, a diverse workforce has a positive impact on the satisfaction of (foreign) employees, and this may decrease the employee-turnover.

Secondly there are impacts on external level. The customer service orientation can be improved by employees who know the needs and specific demands of the customer because they are from the same origin.

Figure 4: ‘Advantages of Diversity in organizations (adapted from Hornikx and Joskin, 2002)

Most organisations acknowledge the importance of managing diversity in order to be competitive. However in most cases it is not their top priority. The results of excellent diversity programs are not always visible and concrete for the organisation. Human resource managers need to point out in hard figures that managing diversity is the right thing to do. In order to be able to successful implement and manage diversity, they need commitment and resources (Robinson and Dechant, 1997).

Diversity

Internal HRM

To conclude: when the cultural diversity policy is well managed and embedded in the vision and strategy of a municipal organization, the service to the customers (citizens and employees) can improve. This on its turn may improve the participation in implementing and conducting the general policy of the municipality. The success factors found in the theory are: (a) openness within the organizational culture for cultural differences, (b) creating support within the organization (on all levels in the organization), (c) establishment of vision and goal-setting (as a basis and awareness for the necessity of implementing diversity policy), (d) and last but not least a HRM policy where HRM instruments are an integrative part of a diversity policy that meets the demands of the various (ethnic) groups.

3.6 Obstructions of cultural diversity

In the book ‘Blikken zonder Blozen’ of Bakas et al (1997) the authors mention a number of reasons for the failure of a diversity policy. These reasons are specified below:

- Communication problems: confusion, feelings of ignorance from the side of the staff,

insufficient occasions for exchange of information, talking about disorder, no disorder reduction policy and a strong rumour circuit.

- Training efforts without strategic support: good intentions without mission, vision,

integration of diversity policy in the total organization.

- High price ticket: the investments and the output are insufficiently calculated in advance

and are not made transparent.

- Seeing it as another change in the organization/ disbelief in the feasibility of the change process: the organization is tired of changing after a lot of reorganizations, does not

realize that not changing is not moving forward, and/or believes that the change is not feasible and does not contribute to the expected effectiveness of the work.

- Insufficient commitment of the different actors: involved actors fear that they might lose

their job by the changes.

- Reversed discrimination: by preferring/advantaging newcomers from the diversity group,

sitting employees may develop resistance against the diversity policy

Costs and Benefits Analysis: reasons for an organization to give attention to diversity in their

policy are the costs and benefits. However, the problem is that both the costs and the benefits are difficult to specify. Benefits of diversity are known from e literature and empirical situations, but this does not mean that the same benefits will occur in each organization. The same insignificance applies to the costs.

Vision on Diversity: a recent research from Hanson (2002) showed that there are two different

visions on diversity. The first vision assumes that a respectable society is a homogeneous society where everyone is equal. A multicultural society is therefore seen as a problem, because it is expected from the ethnic minorities that they adapt completely to the national standards and values.

The second vision, contrary to the first, states that diversity is a good phenomenon. The differences that exist needs to be utilized, the vision on the society is dynamic.

To make a success of its diversity policy, an organization needs to develop an open culture in which each individual can participate and grow freely. For creating such a climate all sections of the organization need to be part of the diversity policy. To reach to this point it needs to create a fertile basis and awareness of the advantages.

3.7 HRM in Relation to Cultural Diversity Management

In this paragraph the relation between cultural diversity policy and Human Resource Management will be discussed.

This means a regular examination and monitoring of the internal organization by using the instruments of HRM policy. Questions like the possible presence of obstructions in the organizational culture or a necessary adaptation in the use of HRM instruments can be answered in this way. On the next pages attention is focused on a number of these aspects.

The following HRM instruments are examined and questions raised as to their relation with diversity.

- Workforce planning - Recruitment and selection - Training

- Performance management - Organizational exit

Workforce planning is anticipating on future staffing requirements and formulating action

plans to ensure that enough qualified individuals are available to meet specific needs at some future time (Cascio and Aguins, 2005). Does there exist a strategic policy which takes the desired diversity into account?

The recruitment methods like advertising and making use of networks. is it possible to reach immigrants with the existing ways of recruitment?

Selection methods like application letter, application form, selection interview, the

psychological test and the assessment. The question must be asked whether these methods are appropriate for the purpose of selection of national and immigrant employees. Don't they favour national or discriminate foreign groups? It is a well known secret that rejection of candidates on basis of colour, origin, culture or name is still in practice.

Training means offering facilities for employees to make career in an organization. Is there an

Performance management means focusing on improving performance at the level of the

individual or team every day (Cascio and Aguins, 2005). Part of performance management is performance appraisal and reward. Is coping with diversity a part of the appraisal policy? Are there indicators concerning (un)equal reward between several groups of employees?

Organizational exit Exit interviews are a good HRM instrument to measure the degree of (dis)satisfaction of employees leaving the organization. Why does an employee choose to leave the organization, what is the reason for his or her departure? Are there specific reasons why the foreign employees leave the organization?

When we relate diversity policy to HRM policy, it must be stated that this policy applies to all employees, foreign and national. . This demands an approach that is aimed at both foreign and national employees. The organization needs to develop a culture in which all employees, irrespective of their ethnic source, religion, sexual orientation, can optimally develop themselves. In short, diversity is the awareness, utilization, acceptation and appreciation of the differences between employees from different (ethnic) backgrounds, both in psychological and in physical sense. The realization of diversity in an organization, and the positive use of a mixture of different people can increase the strength of organizations (Gómez-Meija et al, 2001).

3.8 Conclusion

However, before putting into effect certain practices and instruments, organisations must comply with the conditions as described in figures 2, 3 and 4.

The conditions are:

4. EMPIRIC: DIVERSITY MANAGEMENT IN DUTCH MUNICIPALITIES IN GENERAL

In the following chapters the results of my investigation into the current state of diversity management in some Dutch municipalities are described.

First in chapter four the results from the research of the A&O fund (Dutch labour market and education fund for municipalities) will be described. Second part, chapter five, presents the results of the researches into the practice of diversity management in three large municipalities (Amsterdam, Rotterdam and Utrecht). Finally in chapter six the results of my own research into the practice of diversity management in the municipality of Groningen will be presented. Describing diversity management starts with the founding’s of the research of the A&O fund because they involve a large amount of municipalities. Further on I looked specifically at some municipalities.

A&O Fund (Dutch Labour Market and Education Fund)

A&O fund promotes and supports renewed activities in the field of the labour market and the HRM policy. Actual information about the different projects can be found on the Internet site www.aeno.nl. The aim of the A&O fund is to promote diversity management within the municipalities. To realize this aim, the A&O fund has developed different activities in recent years, particularly aimed at increasing the ethnic diversity within the municipal organizations. One of the activities is the project ‘Diversity Rewards’.

4.1 The research

The A&O fund has conducted a research (called ‘Diversity Rewards’ (Diversiteit loont) among 133 Dutch municipalities into the topic of diversity management. The central question of this research is the current state of diversity policy in Dutch municipalities, and the impact of the research ‘Diversity Rewards’. The research started in 2000 and ended in the year 2004. The results will be described in this chapter. First the context of the research will be presented. After that the conclusions of the research are summarized.

The data from the research report were obtained by questionnaires. 133 of the 250 municipalities participated in the research (response of 59%). In appendix 1 the research method is added.

4.2 Diversity Policy at Municipalities

In this paragraph the results of the research concerning the presence of diversity policy within municipalities and the design of the diversity policy are presented.

4.2.1 Presence of a diversity policy

- A minority of the 133 municipalities from the research group (25,6%) has a policy concerning ethnic diversity for the internal organization.

- Large municipalities have more often a diversity policy then smaller municipalities. - Municipalities with a diversity policy have more often hired ethnic minorities than

municipalities which do not have such a policy.

- The percentage of the municipalities with ethnic minorities in service has increased with respect to the research of the situation in 2000.

- In 25% of the municipalities with a diversity policy, someone from the top management is responsible for the design and implementation of the policy.

4.2.2 Design of diversity policy

- The most attentive activities within the framework of diversity policy are related to procedures and methods to prevent discrimination and procedures to hire ethnic minorities.

- There are almost no instruments to promote the flow of ethnic minorities to higher positions or to prevent the employee-turnover of ethnic minorities.

4.3 Impact of Cultural Diversity Policy

In 2004, 94% of the municipalities saw a positive impact of their diversity policy. In the year 2000 this percentage was 90. Improved contact with foreign citizens and the improved integration of foreign employees in the organization are mentioned as a positive outcome of diversity policy. In 2004, almost half of the municipalities (in accordance with the first measurement in 2000) saw no negative impact of diversity policy.

policy). Nowadays the scope of diversity policy is directed on decreasing the negative impact for the employees, respectively stigmatisation and discrimination.

At this moment the greater part of the municipalities find that the diversity policy improves their service and makes the municipality a more attractive employer.

4.4 Success factors and support for cultural diversity policy

In 2004, as compared to the year 2000, sufficient control of the Dutch language and support within the municipality, still were considered as the most import success factors for diversity policy. Moreover, municipalities attach much value to good accompaniment of new hired ethnic minorities. Pressure from political side, in the form of the municipal council and other interest groups are an important reason to intensify or end the diversity policy. .

The support and overcoming resistances are very important factors in the decision to pursue a diversity policy. Municipalities with no diversity policy report a low support, especially from the side of service- and sector managers. In contrast, the municipalities with a diversity policy appreciate the policy with a grade 6. The larger municipalities seem generally more satisfied than medium sized municipalities.

4.5 Reasons for having or not having a diversity policy

One of the reasons mentioned for not having a diversity policy is not seeing the necessity to have one. Most mentioned reasons are: 'without a policy it is also working' and 'there are hardly any minorities living in the municipality'. A common reason for several municipalities is that a diversity policy has no priority in their general policy. Finally some municipalities do not have a diversity policy, because they want to prevent affirmative action and stigmatization.

Most common reason for municipalities to have a diversity policy is their vision on social responsibility towards the community. The staff must be a reflection of this community and the municipality has an example function in this matter. Furthermore the municipality may wish an improvement of the social position of ethnic minorities in the society.

most mentioned policy in which specific attention is given to the ethnic minorities. External mobility policy is mentioned less often and the career policy is in between.

4.7 Conclusions

Municipalities that have implemented a diversity policy are generally doing this because they want to be a reflection of the society. One of the outcomes of the research of the A&O fund is that municipalities with a high representation of ethnic minorities in their community conducted a diversity policy. Municipalities without a diversity policy explain that there is no need for this because there are only few immigrants within their boundaries. It seems that the presence of a significant number of immigrants in the municipality forms a core reason for the implementation of a diversity policy.

It can be concluded from the research of the A&O fund, that conditions mentioned in the theoretical framework such as openness, support, goal setting/vision and an ethnic diversified HRM policy, are necessary requirements for successful implementation of a diversity policy. An ethnic diversified HRM policy can lead to openness for new cultures amongst the employees in an organization

The A&O fund adds one more success factor to the theoretical framework. According to A&O fund the integration of immigrants within the municipality and with other employees is a vital condition a successful diversity policy.

5 : EMPIRIC: DIVERSITY MANAGEMENT IN THREE LARGE DUTCH MUNICIPALITIES

(ROTTERDAM, AMSTERDAM, UTRECHT)

The diversity policy in the three large municipalities of Rotterdam, Amsterdam and Utrecht serve as an example/ guideline for other (smaller) municipalities and are presented in the book of Essed & de Graaff (2002). This chapter will present the highlights of their findings. The interviews conducted for this research are with experts in the field of diversity within the municipalities.

5.1 Municipality of Rotterdam, The Multicolored City

‘People who do not go along with changes are doomed to fail’. This pronouncement of Bernard Shaw (winner Nobel Prize of literature in 1952) also applies to the municipality Rotterdam. Rotterdam has changed the previous decades: for example, more than 40% of the people in Rotterdam are of ethnic minority (www.veelkleurigestad.nl, 1998).

5.1.1 Context

Rotterdam is the municipality with the lowest income, the highest unemployment, and the lowest education level. However leaning backwards and doing nothing is not the Rotterdam mentality. With lots of energy and creativeness the municipality and citizens of Rotterdam have tried to solve the social problems in the past years There is consciously chosen for a methodological solution, namely the program “the Multicolored City” developed in 1998.

The program consists of eight main points:

- Increase the use of unused potential under the immigrants;

- Increase the participation of immigrants in subsidized institutions;

- The development of a specific approach, there where the general policy is inadequate; - Changes in the education, in own language and culture;

- The integration of newcomers and persons who live here already for a longer time; - Integration of ethnic minorities in the municipal governing board;

- Renewal of the diversity personnel policy of the municipality;

Program ‘The Multicolored City’

The program the multicolored city is divided in four priorities:

1. Rotterdam "DiverCity": procedure for setting-up diversity policy instruments within the municipality.

2. Participation of immigrants in subsidized organizations 3. Action program for foreign entrepreneurs

4. Culture policy.

The program is set up in these four points, however in my research I only focus on the internal organizational policy towards employees. The first point focusing on the internal policy. The other three points are focusing on external policy of the municipality. Therefore I only presented the context of the first point (Rotterdam DiverCity: procedure for setting-up diversity policy instruments within the municipality).

Rotterdam DiverCity

The society of Rotterdam has changed. This requires a different way of thinking and acting. To reach this change Rotterdam implemented the DiverCity program: an action plan for setting-up a diversity policy within the municipality Rotterdam. The target groups of DiverCity are immigrants, women, disabled and young people.

The program DiverCity contains three goals:

1. The staff of the municipality of Rotterdam becomes a reflection of the society. 2. The organization offers space to develop talent

3. The service fits the needs of the society

The implementation:

- Diversity programs within the different teams in the municipal organization: the managers

of the teams change and improve their policy to create a more accurate reflection of the society of Rotterdam.

- HRM policy: managers of HRM develop personnel instruments which encourage that the

staff will be a reflection of the society.

- Communication policy: managers of the communication department develop actions plans

5.1.2 Interviews

The interviews are conducted with Sandra Korthuis, Alderman of Finance and Health, Wilma Gilles-Burleson, Program manager the Multicoloured city and Gerard Spierings, Program manager City policy. The outcomes of the interviews are:

1. No target group policy. Target group policy reduces people to their ethnic background

only and therefore makes it liable to negative attention for ethnicity and cultural differences. Target groups policy may result in negative reactions from employees. 2. Integration of both sides. Working together with mutual respect and understanding are

the key words for dealing with diversity. It is a challenge for the municipality to overcome the cultural differences. Attention must be focused on similarities instead of only on differences.

3. Diversity policy integrated with HRM policy. The municipality has stated that the

HRM policy is the first priority. Cultural diversity needs to be an integrated part of HRM policy.

4. Ethnic minorities in top positions. A shortcoming in the successful implementation of

the diversity policy is the under representation of ethnic minorities in top- and higher management functions (directors, mayor and alderman).

5.1.3 Conclusion

Looking at the methods which have been used in the program the Multicoloured City it is clear that the municipal organization has especially focused on creating a diverse organization (from the view of the multicultural society). The program has promoted the appreciation of diversity within the organization and in the society. The customer orientation and the customer consciousness have been brought to a higher level.

From 2005 people are aware of the fact that diversity policy must not be considered as a separate policy, but as an integral part within the total (strategic) policy. The integration policy is currently a hot topic in the municipality and the diversity policy is directly linked with this policy.

The formulated objective to appoint a certain number of immigrants within the municipal organization has not been obtained. Probably because the objectives have been defined too ambitiously, and are not formulated these from a sense of necessity.

5.2Municipality of Amsterdam, The Power of a Diverse City 5.2.1 Context

In the program agreement of the city of Amsterdam for the period of 1998-2002 the policy for gay and women emancipation and minorities’ policy were put together in a new portfolio: diversity policy. The municipality started with a vision, named ‘the power of a diverse city’. The vision and the diversity policy were aimed at becoming a city where everyone can make a contribution to the city. In other words, the municipality creates equal chances for everyone. One of the first actions in Amsterdam after introducing this new vision was the abolishment of the target group policy. There were two reasons for this abolishment. Firstly because the target group policy gave no attention to the variety within the specific groups. Secondly because it gave a negative stigma to the groups concerned. All attention was given to the so backward position of these groups.

In 2000 the implementation plan was introduced with four objectives:

- The context of the policy needed to be related to the diversity of the society;

- The diversity should be reflected in the organizational culture and staff composition; - Stimulating participation and abandon negative representation and excluding; - Creation of a broad social coalition.

The diversity policy is integrated with the HRM policy. More attention has been given to organizational culture, selection of new employees, internal education policy and managing diversity.

5.2.2 Interviews

The interviews are conducted with Jaap van der Aa: Alderman Diversity, Freek Ossel: Director Social, Economic and Cultural Development and Jacqueline Janssen: Manager General Service.

The outcomes of the interviews are:

1. No target group policy. It is important not to look at target group policy because that

is negative, stigmatizing and not very subtle. Diversity policy is about everybody and recognizes the shared values. Similarities are as much important as the differences are. 2. Awareness among top management, openness for changes. When the vision and goals

are clear, there are several methods to put the policy into practice. Starting with growing consciousness among the management and also, in second place, an optimistic attitude needs to be developed and finally the instruments need to be supportive to the different practices. Finally, openness for changes in all levels of the organization and for all citizens is a crucial factor in diversity management.

3. Take into account the whises if the cutsomers. To create possibilities for ethnic

5.3 Municipality of Utrecht, No Colour Blindness, but a View for Diversity

5.3.1 Context

The municipality of Utrecht was one of the first in introducing policies directed and adapted to ethnic minorities. The research of the University of Utrecht was the starting point of the discussion about local policies relevant to ethnic minorities. After the discussion, a vision document was created. This new vision meant for the organization far going changes in the way of developing a policy: more communication and dialog, new ways for civil servants for receiving and giving feedback, more attention for own responsibilities of actors and finally measurable results.

Within the new policy the choice is made for focusing on the interaction between different cultures and creating possibilities. It’s a two way process: all groups needs to be critical to current patterns. Another main point of the policy is the focus on interpretation, preconceptions and discrimination.

Important topics in the new policy are: - Participation;

- Liveability; - Interpretation.

These new topics require renewal and intensification of the organizations involved.

5.3.2 Interviews

The interviews are conducted with Hans Spekman: Alderman Social Health, Sport en diversity management, Kate Kervezee: Director Social Developments and Marlies Koopman: Procesmanager Interculturalisation

The outcomes of the interviews are:

1. Openness for discussion and communication. It is important to increase the discussion

with each other. The municipality can be an actor in this discussion.

2. HR instruments which are suited and concreted. The HR instruments which are used

3. Implementation both top-down as bottom-up. ‘Make use of the possibilities instead of

6. EMPIRIC: DIVERSITY MANAGEMENT IN THE MUNICIPALITY OF GRONINGEN

After presenting the results of the large cities (Rotterdam, Amsterdam and Utrecht) the results of municipality of Groningen based on the interview will be presented below. The interview is conducted with Mr. K. El Hami (employee of HRM department). The questionnaire is added as appendix two.

6.1 Context

In the coming years the municipality Groningen will take extra measures to improve the position of ethnic minorities on the labour market. To accomplish their goal, Groningen has developed several instruments and policies aimed at increasing the labour participation of ethnic minorities. These instruments are:

- training and education of the current employees in the field of cultural diversity policy - setting a goal for hiring a certain number of ethnic minorities

- take into account the cultural aspects, for example in the assessments for selection - set up of dual projects

- methods for improving promotion possibilities for ethnic minorities - offering education possibilities

The municipality Groningen launched the project for cultural diversity policy in 1999. At this moment (2007) the municipality is in the final stage of the project, namely implementing the policy. There are several reasons why Groningen started this project, namely:

- the municipal organization needs to be a reflection of the society as regards the composition of the population

- all groups in the society must have the possibility to influence policy making

- there must be a match between products and service of the municipality with the diverse character of the citizens

- improved employment opportunities for foreign employees

The following activities are developed by the municipality in the field of cultural diversity: - development of projects aimed at hiring more ethnic minorities

6.2 Success Factors Cultural Diversity Policy

During the last eight years the municipality of Groningen has recognized several positive effects of the cultural diversity policy. These effects are a low organizational exit of ethnic minorities and a growing consciousness inside the organization about the increased value of the policy.

However these success factors can not be accomplished when the following conditions are not applied in the organization:

- foundation within the organization - support from top (management)

- good accompaniment of new hired ethnic minorities - sufficient financial resources

6.3 Objectives for Diversity Policy

Despite of the positive effects of diversity policy, there are also some negative effects to be noticed. The two most significant are:

too much attention on the problems instead of the possibilities and unwished differentiation based on the social background of the minorities concerned. The municipality wants to overcome these negative effects by commitment (creating a basis) and improved communication (top-down and bottom-up).

6.4 HRM and Diversity Policy

The results presented in this paragraph have been related to five HR instruments, namely: workforce planning, recruitment and selection, training, performance management, and organizational exit.

Workforce planning

Recruitment and selection

The municipality can dispose of a group of ethnic minorities which are not employed at the municipality but at affiliated, mostly subsidized organizations. This group has a special status which means they can apply for internal municipal vacancies. For these candidates the municipality offers information meetings, application support and job mediation. All these vacancies are open for ethnic minorities from the group described above.

Training

The municipality has developed instruments for ethnic minorities to get involved in the labour market. The HRM policy is aimed at promotion possibilities for ethnic minorities. For the other employees there is the possibility to follow a training aimed at cultural diversity.

Performance management

With the HR instrument of performance management there are not many possibilities to increase the number ethnic minorities with the organization. When employees are judged the difference will be between the different talents, not different cultures. There is no difference in rewarding the employees of different backgrounds.

Organizational exit

7. CONCLUSIONS OF DIVERSITY MANAGEMENT IN DUTCH MUNICIPALITIES

This concluding chapter provides an answer about the role of diversity policy within municipalities by integrating the theory with the empirical findings. Or in other words, an answer is given to the problem definition central in this paper, namely:

“When is diversity management successful within municipalities?”

In order to successful implement diversity (according to the A&O fund and the municipalities Amsterdam, Rotterdam, Utrecht and Groningen) the application of the conditions mentioned in the theory (openness, basis/consciousness/support, goals-setting and integration with HRM) is required.

However, in their research, A&O fund recognizes that the integration of immigrants within the municipality and with other employees is also an essential condition for success. The three municipalities (Amsterdam, Rotterdam and Utrecht) also mentioned the importance of the aspect of integration. They focus on using networks for understanding and cooperating with immigrants.

From the Rotterdam case it appears that the success of a diversity policy also depends on the awareness in the organization of the necessity to implement this policy. Also diversity policy must not be considered as a separate policy, but as an integral part of the total (strategic) policy of the municipality.

All studied municipalities recognize that commitment from the top is essential for successful implementing diversity management. Putting this policy into practice starts with convincing the top management of the necessity of such a policy and developing an optimistic attitude towards diversity and change the organization.

7.1 Reflection on research questions

The outcome of the main research question is based on the four research questions. These questions will be answered in the next paragraphs.

The research questions are:

1. What is cultural diversity management?

2. What determines the success of diversity management? (what are the strategic advantages of cultural diversity and what are the obstructions of cultural diversity?)

3. How can HRM policy offer support to a cultural diversity policy? 4. How is diversity policy interpreted in practice in a government agency?

7.1.1 What is cultural diversity management?

In paragraph 3.1 the differences between diversity management and diversity policy are discussed. Diversity management is a specific HRM and marketing policy, aimed at a composition of the staff that reflects the society with its various populations (Bakas and van Wolde, 1997). Diversity policy aims at facilitating management to successful manage those aspects of the multicultural society which are important for the organization (Derveld, 1995: in Vught).

The research points out that the experts on diversity within the municipalities see diversity policy especially as a management instrument to support the implementation of diversity into the organization. The main objective is to reach a reflection of the society in the number and variety of persons employed (increase of ethnic minorities in the total workforce). From the research it appears also that the experts talk more about diversity policy than about diversity management. Diversity management is expected to come on its own once a diversity policy is in practice.