Economic Growth
Pegasus86
document1.pdf
Human Resource Management, March–April 2015, Vol. 54, No. 2. Pp. 199–215
© 2014 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI:10.1002/hrm.21654
Correspondence to: Rory Donnelly, Birmingham Business School, The University of Birmingham,
University House Edgbaston Park Road, Birmingham B15 2TY, United Kingdom, Phone: +44 (0)121 414 5144,
E-mail: [email protected].
Such practices often include the creation of mi- nority interest groups and the provision of career progression support specifically for workers from these groups (Cooke & Saini, 2010).
This US-initiated agenda has gained interna- tional currency among HR managers and orga- nizational leaders, including those operating in emerging economies (Healy & Oikelome, 2007; Li, Wai Lung Chu, Lam, & Liao, 2011; Sippola & Smale, 2007). India is a key exemplar among these economies (Stumpf, Doh, & Tymon, 2010). It is an extremely heterogeneous nation by eth- nicity, language, and faith. Yet the legal and orga- nizational infrastructure for diversity in India is patchy and limited. Equal opportunities and
Introduction
D iversity and inclusion have become prominent organizational and societal concerns due to increasing market, firm, and workforce internationaliza- tion as well as legal, social, and eco-
nomic changes (Shen, Chanda, D’Netto, & Monga, 2009). In this article, diversity and inclu- sion (D&I) management refers to voluntary or- ganizational interventions designed to recognize and accommodate workers’ demographic and personal differences into formal and informal organizational structures through deliberate mea- sures and policies, with the aim of maximizing the contribution of staff to organizational goals.
TENSIONS AND CHALLENGES IN
THE MANAGEMENT OF DIVERSITY
AND INCLUSION IN IT SERVICES
MULTINATIONALS IN INDIA
R O R Y D O N N E L L Y
Information technology (IT) services multinationals in India provide rich
environments for the analysis of emerging patterns of diversity and inclusion
management. Growing interest in this fi eld of management has been accentuated
by claims tabled by the business case and resource-based rationales. However,
challenges and tensions potentially undermine not only the viability of these
assertions, but also the impact of diversity and inclusion interventions them-
selves. This article investigates the tensions and challenges faced by a sample of
fi rms in India in relation to age, gender, and intra- and international diversity. The
fi ndings shed light on the implications of these tensions for HR management in
these organizations, which need to be addressed if the claims put forward by the
business- and resource-based perspectives are to be realized and the manage-
ment of diversity and inclusion is to be successfully aligned with business and
HR strategies. © 2014 Wiley Periodicals, Inc.
Keywords: diversity, inclusion, India, business case, resource-based view
200 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
Human Resource Management DOI: 10.1002/hrm
India’s rapidly
expanding IT
services sector
features extensive
multinational
knowledge-intensive
activity, where
the application
and impact of D&I
initiatives is likely
to be salient, and
so it provides a
rich context for the
analysis of emerging
management
patterns.
The findings reveal tensions between the rhet- oric of HRM theories and organizational policies, management practice, and employee behavior in the sample firms. Moreover, they cast light on the implications of these tensions for HR management in these organizations, which need to be addressed if the claims advanced by the business-case and resource-based perspectives are to be realized and the management of D&I is to be successfully aligned with their business and HR strategies.
The D&I Agenda: The Promise of Business and Performance Enhancements
Diversity management is a relatively nebulous functional construct, punctuated by contrasting interpretations and continuing debate (Foster & Harris, 2005; Oswick, 2010). This is because it effectively constitutes a blanket term for the management of a growing list of intersecting individual differences, which vary with respect to the degree to which they are directly visible. Depending on national and organizational con- text, these include but are not limited to age, gender, ethnicity, disability, religion, social and marital status, sexual orientation, personality, and culture (Shen et al., 2009).
Diversity management builds on the social categories covered by conventional equal opportu- nities policies to include personal characteristics, with the emphasis placed on positive voluntary action rather than compliance with external leg- islation (Jayne & Dipboye, 2004; Kossek, Lobel, & Brown, 2005). Valuing, harnessing, and utilizing demographic diversity and overcoming negative discrimination and segregation are the commonly espoused aims and ambitions of diversity advo- cates and related policy statements (Healy, Kirton, & Noon, 2010).
For some, this equates to a bifurcation with the more traditional framework of equal oppor- tunities, evidenced through the identification of a range of distinguishing features (see, e.g., Kandola & Fullerton, 1998; Liff, 1997). However, the degree to which these constitute practical or analytical contours is subject to ongoing debate, as is the extent to which there is evidence of any real shift (Kaler, 2001). At firm level, this can be particularly apparent due to overlaps in practice and a tendency for the moniker of diversity man- agement to be merely superimposed on to equal opportunities policies, thereby obfuscating dif- ferentiation on the behalf of HR practitioners and organizational members (Foster & Harris, 2005; Oswick, 2010).
Nevertheless, analyses of HRM discourse and policy developments show that diversity manage- ment continues to eclipse equal opportunities in
antidiscrimination legislation are components of the Constitution and laws to protect the civil rights of vulnerable groups, but they are not fully comprehensive and are weakly enforced (Woodard & Saini, 2006). Indeed, in an internationally com- parative index of diversity readiness compiled by the Society for Human Resource Management (SHRM) and the Economist Intelligence Unit (EIU) (2009), India ranked 41 out of 47 countries.
Such national-level assessments may in part be influenced by the scarcity of empirical research examining the management of D&I in firms in India (Budhwar & Varma, 2010). Consequently, it is important that we address this lacuna by
enhancing our understanding of D&I in this environment (Greene & Kirton, 2010; Hoque & Noon, 2004; Kamenou, 2007; Nishii & Özbilgin, 2007). India’s rapidly expanding information technology (IT) services sector features extensive multina- tional knowledge-intensive activity, where the application and impact of D&I initiatives is likely to be salient, and so it provides a rich context for the analysis of emerging man- agement patterns (see Ali, Kulik, & Metz, 2011; Cooke & Saini, 2010).
The research detailed in this article provides insight into the management of D&I from the per- spective of senior organizational leaders in IT services multination- als in India because of the pivotal role of these actors and organiza- tions in shaping policy and practice, not only within but also outside their firms. Through this prism, the article focuses on the relationship between organizational D&I policies influenced by HRM theory and busi- ness case arguments and the views and actions of management and
staff, as accounted for by the sample. In particular, the following research questions
are explored. How are age, gender, and intra- and international diversity viewed and managed by HR leaders in multinational IT services firms in India? What challenges do they face in achiev- ing their goals in relation to the management of D&I policy and practice in these areas and why? To address these questions, original data were col- lected through qualitative semistructured inter- views with top-level D&I agents in multinational IT services firms in the high-tech clusters of Delhi as well as the industry body, together with the acquisition of organizational policy documents.
Human Resource Management DOI: 10.1002/hrm
TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 201
The lure of claims
made by protagonists
of the business
case and RBV have
transcended national
boundaries, extending
the application of
D&I practices beyond
the established
equal opportunities
institutional
frameworks of the
United States and the
European Union and
its member states.
In addition, the achievement of D&I goals can be undermined by individual as well as intra- group tensions and competing interests, which can spill over into organizational practice and behavior (Shore et al., 2009; Van Knippenberg & Schippers, 2007). What is clear from the litera- ture is that senior managers and effective diver- sity management programs play a central role in moderating these tensions in combination with the development and maintenance of an inclusive organizational culture and associated HRM prac- tices. Consequently, it is important to investigate the role played by HR leaders and any evidence of tensions between rhetoric and practice in shap- ing the degree to which practices are aligned in firms seeking to manage D&I as part of their business and HR strategies.
IT Services Firms in India: Rich Territories for Emerging D&I Patterns
The lure of claims made by protago- nists of the business case and RBV have transcended national bound- aries, extending the application of D&I practices beyond the estab- lished equal opportunities institu- tional frameworks of the United States and the European Union and its member states. However, there is a paucity of empirical research into D&I management in organizations in emerging economies, where the impact is potentially fundamen- tal, given that equal opportunities legislation may be scarce (Healy & Oikelome, 2007). D&I practice is therefore likely to be refracted by national norms and attitudes even in multinationals seeking to pur- sue a global approach, due to the multidomestic nature of diversity practices in these organizations (Kamenou, 2007; Nishii & Özbilgin, 2007; Sippola & Smale, 2007).
Multinational activity is strongly evident in India’s IT services sector (Athreye, 2005). Much of this activity has facilitated the rapid growth of the sector from $8 billion in 2000 to $63.7 billion in 2010, with revenues forecast to hit a sizeable $225 billion by 2020 (NASSCOM, 2011). As such, it represents a prodigious success story. Yet this expansion is likely to intensify the already severe recruitment and retention difficulties faced by firms in this sector that stem from extensive com- petition, turnover, and skill shortages (Holtbrügge, Friedmann, & Puck, 2010; Raman, Budhwar, &
many firms (Kirton & Greene, 2009; Tatli, 2011). This shift toward D&I can in part be attributed to business case arguments, which are a defin- ing feature of this management focus (Kamenou, 2007). Drawing on this rationale, a range of orga- nizational benefits can potentially stem from the acquisition and maintenance of a diverse work- force. To begin with, management may be able to exercise greater influence over equality and diver- sity issues by drawing them into the corporate agenda and aligning them with their business and HRM strategies (Zanoni & Janssens, 2004). This can offer associated benefits in relation to corpo- rate ethics, image, and social responsibility (Jayne & Dipboye, 2004; Kandola, 1995).
For many organizations, customer diversity is growing. Tapping into new markets has become an imperative because trade and business inter- nationalization is intensifying. A diverse work- force is likely to assist in attracting a larger and more diverse customer base both domestically and abroad, thereby supporting market expan- sion. However, at the same time, competition over human capital is also increasing and becom- ing nationally and organizationally boundaryless (Scott, Heathcote, & Gruman, 2011), especially in high-tech fields such as IT (Saxenian, 2005). In light of this, the introduction and application of D&I initiatives offers the scope to improve recruit- ment, retention, talent leverage, and flexibility (Armstrong et al., 2010; Scott et al., 2011).
D&I management can also enhance the utili- zation of the skills, knowledge, and potential of an organization’s human resources. This rationale is very much supported by the internalized focus of the resource-based view (RBV) of the firm. The RBV argues that human resources and their valu- able, rare, and inimitable skills and knowledge are the key to sustainable competitive advantage through the creation of innovative goods and ser- vices (Barney, Ketchen, & Wright, 2011). Firms must therefore accumulate distinctive human resources, a goal assisted by workforce diversity.
However, the parameters for achieving opti- mum diversity and corresponding performance levels are unclear, and empirical evidence attest- ing to this link is weak and indeterminate, to say the least (for critical analyses, see Ali et al., 2011; Kochan et al., 2003). This is largely due to the obstacles presented in isolating the impact of D&I management relative to other interventions and influences on a firm’s performance, a complica- tion further problematized by the reality that many organizations do not actually have very diverse workforces and the tendency for the con- tributions and innovations generated by a diverse HR mix to be ambiguous (Shen et al., 2009).
202 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
Human Resource Management DOI: 10.1002/hrm
While the recruitment
of young workers
offers the scope to
assemble a more
educated and
flexible workforce,
a preponderance of
young workers may
affect performance
levels on the basis of
the RBV, as this may
conflict with the goal
of achieving an age-
balanced workforce.
which contribute to enhanced competitive advan- tage and performance. However, most studies do not examine each of these dimensions. Instead, they focus on just one or two of the aforemen- tioned demographic variables. In the context of India and its IT services sector, these categories of diversity continue to be underexamined, and this needs to be addressed urgently given that any related policies are likely to influence access to the opportunities and rewards offered by knowledge- intensive forms of work (World Bank, 2005).
As in other countries including the United States and United Kingdom, the IT services sector in India is populated by and associated with rela- tively young workers (NASSCOM, 2011). However, this tendency is likely to be more pronounced in this national context because the median age in India is 25.1, which is much lower than the medi- ans for the United Kingdom and United States at 40 and 36.8, respectively (United Nations, 2010). In India, 30 percent of the population is under 15, and less than 5 percent are aged over 65, compared with a 65+ OECD average of 23.6 percent (Organization for Economic Cooperation and Development [OECD], 2011). While the recruitment of young workers offers the scope to assemble a more educated and flexible workforce (Beaver & Hutchings, 2005), a preponderance of young workers may affect performance levels on the basis of the RBV, as this may conflict with the goal of achieving an age-balanced workforce. Moreover, the valuable knowledge and experience held by older workers may be lost due to early exit. In the face of this, countering such behavior and achieving a balance is likely to be challeng- ing, given that the management of this channel of diversity is often shaped by societal norms and attitudes in relation to aging (Riach, 2009).
With respect to gender, women have played an important but underacknowledged role in supporting the expansion and success of IT ser- vices firms in India, particularly in fields such as business process outsourcing (BPO). However, a large proportion leave employment by the time they reach 30 due to personal and familial rea- sons (Cooke & Saini, 2010). It is unclear how this impacts IT services firms in India and how this behavior is influencing the development of gen- der D&I measures.
India is also an extremely multicultural soci- ety, with eclectic heterogeneity by religion, lan- guage, ethnicity, and social status (Budhwar, 2009; Som, 2007). This diversity is likely to be amplified in the IT services sector, due to the highly inter- nationalized nature of this sector and associated talent flows (Saxenian, 2005). This context there- fore provides an ideal setting for the realization
Balasubramanian, 2007). High levels of so-called boundaryless and protean career behavior among IT workers, characterized by self-directed agency and interfirm mobility, serve to compound these recruitment and retention challenges (Dickmann & Baruch, 2011; Donnelly, 2009). Set against this context, D&I management can be used as a means of tackling skills gaps and gaining a com- petitive advantage in relation to recruitment and retention.
The adoption of a strategic approach to HR and D&I management is growing among multination- als in India (Holtbrügge et al., 2010), particularly those engaged in the production of services rather than physical goods (Ali et al., 2011). Indeed, “knowledge-intensive multinational operations
are more likely to take a compara- tively more proactive approach to [diversity management] to leverage competitive advantage than long- established, domestic firms in tradi- tional industrial sectors” (Cooke & Saini, 2010, p. 495). Because of this, it is important that we gain insight into the reality of D&I management in these types of organizations in India to understand the challenges that organizational leaders face in implementing D&I practices in this environment and how these chal- lenges are shaped by organizational behavior.
Central Channels of Diversity in IT Services Firms in India: Age, Gender, Intra- and International Heterogeneity
A review of extant D&I literature demonstrates that many studies focus on gender, age, and intra- and international diversity (for a review, see Li et al., 2011). In this article,
the term intranational diversity covers variation within India by ethnicity, language, religion, social class, and region/state. International diver- sity refers to the incorporation of staff from out- side India.
Drawing on the RBV of the firm, numerous authors argue that a gender, age, and intra- and international balance improves organizational performance (Ali et al., 2011; Frink et al., 2003; Li et al., 2011; McMillan-Capehart, 2005). This is because the acquisition of such variation brings together a broad range of attributes, skills, and knowledge through which creativity and inno- vation are potentially heightened by the assem- bly of intangible and socially complex resources,
Human Resource Management DOI: 10.1002/hrm
TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 203
The researcher sought access to CEOs and top-level HRM representatives from these firms because their role or position enabled them to provide an overview of the HRM and D&I chal- lenges faced by their organization. These partici- pants were also targeted because the significance of their role in shaping the outcomes of diversity interventions is emphasized across the literature (Cocchiara, Connerley, & Bell, 2010; Konrad, Prasad, & Pringle, 2006; Scott et al., 2011; Shen et al., 2009), including those that focus specifi- cally on IT services firms (Childs, 2005). Such a lens therefore provided an invaluable insight into strategic views and challenges faced in achieving diversity and organizational goals in the distinctive environment in which IT multinationals operate. Access to staff within the firms was requested, but the participants did not facilitate this in the end. The viewpoint obtained may not have provided a micro-level insight into the potentially contrast- ing interpretations and experiences held by indi- viduals at different levels with these firms, who are of course critically important in shaping D&I management, practice, and behavior. However, it did provide a unique lens, which was well suited to addressing the study’s research questions.
To enrich this perspective and to triangulate the data collected from the firm participants, an in-depth interview was performed with a repre- sentative of the industry body to gain an over- arching perspective on D&I management among firms in the sector and to check the resonance of the views expressed by the firm representatives. Details concerning the sample composition are outlined in Table I.
Eight of the 15 interviewees were male and 7 female. The mean age of the participants was 46, spanning from 33 to 58 years of age. Each was university-educated and of Indian nationality.
Data Collection and Analysis
In keeping with the study’s qualitative research design, a semistructured interview schedule was developed to allow participants to express their views in their own words and to enable points of interest that emerged during the interviews to be explored (Cassell, 2009). The schedule was designed to enable the study’s research questions to be addressed and to examine the principal forms of diversity identified by the participants themselves. Each of the participants highlighted the channels of diversity examined in this article. As a consequence, the major themes explored in the schedule centered on the discussion of their approach to HRM strategy and diversity manage- ment; the policies and measures in operation to manage age, gender, and intra- and international
of the type of workforce diversity advocated by the business case and RBV perspectives. Yet we do not know enough about how practice and behav- ior corresponds with firms’ D&I policies or the management challenges faced by organizational leaders in seeking to create a diverse and inclusive working environment.
Methods
The researcher sought to address the research questions specified in the introduction by exam- ining how organizational leaders deal with D&I challenges in a targeted sample of IT services firms in India (see Table I). An estimated 150 IT services firms out of the 1,200 member firms of the industry association in India had formal D&I policies in place at the time of the study (Senior Representative, Industry Body). This sampling frame was refined by focusing on firms operat- ing in the high-tech clusters of Delhi, because this region has the largest number of IT companies in India. In addition, such clusters arguably act as incubators of developments in HRM more broadly (Saxenian, 2005). A focus on these areas also held environmental variation relatively constant, enabling any evidence of patterns or divergences to be observed in relation to the research partici- pants’ views and experiences of D&I management.
Multinationals were selected because of the increasing interest in D&I in these types of firms from academics and practitioners (see Childs, 2005; Kamenou, 2007; Sippola & Smale, 2007). This is in part because these organizations are likely to be more internationalized and demo- graphically diverse and have more developed HRM and diversity practices relative to domestic- only firms (Özbilgin, 2005). They also enable the internationalization of the concept of diversity management and associated practices to be exam- ined in organizational settings that are likely to be illustrative of these developments (Boxenbaum & Battilana, 2005). Moreover, they provide insight into the interpretation and translation of these trends in business settings in India (Risberg & Søderberg, 2008).
Sampling Strategy
Access to these firms was facilitated through con- tacts established with industry actors and agen- cies operating in the high-tech clusters of Delhi. Participation requests were disseminated to 25 firms that fit the target sample and engaged in the delivery of IT services.1 Each of the firms that responded positively and were ultimately sam- pled had a formal diversity management policy in operation (see Table I).
204 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
Human Resource Management DOI: 10.1002/hrm
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n g
o v
e r
5 0
d if
fe re
n t
n a
ti o
n a
li -
ti e
s w
o rl
d w
id e
. A
v e
ra g
e a
g e
2 8
.
3 5
% f
e m
a le
. A
p p
ro x
im a
te ly
5 0
% o
f
s ta
ff b
a s e
d i n
I n
d ia
, o
f w
h ic
h o
v e
r
9 1
% w
e re
I n
d ia
n f
ro m
a r
a n
g e
o f
s ta
te s , re
g io
n s , a
n d
e th
n ic
it ie
s .
L e
a d
e rs
h ip
a n
d m
e n
to ri
n g
p ro
g ra
m s f
o r
w o
m e n
.
E m
p lo
y e
e a
ffi n
it y g
ro u
p s (
e .g
., g
e n
d e r)
.
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v
e , d
a y c
a re
, c a re
e r
b re
a k s .
T ra
n s p
o rt
t o
/f ro
m w
o rk
.
F a
m il y
a n
d ‘ b
ri n
g y
o u
r d
a u
g h
te r
to w
o rk
’ d
a y s .
R e
li g
io u
s h
o li d
a y c
e le
b ra
ti o
n s .
C o
m m
u n
it y
p ro
je c ts
.
Human Resource Management DOI: 10.1002/hrm
TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 205
F ir
m 5
(I n
d ia
)
D e li
v e rs
a r
a n
g e
o f
s o
ft w
a re
-
re la
te d
s e rv
ic e s
in c lu
d in
g d
e s ig
n
a n
d i
n te
g ra
ti o
n
S e n
io r
H R
M a n
a g
e r/
F e m
a le
1 0
,0 0
0 +
e m
p lo
y e
e s . A
v e
ra g
e a
g e
2 8
. 1 4
% f
e m
a le
. A
p p
ro x
im a
te ly
7 5
% o
f s ta
ff b
a s e
d i n
I n
d ia
, o
f
w h
ic h
o v
e r
9 0
% w
e re
I n
d ia
n f
ro m
a r
a n
g e
o f
s ta
te s , re
g io
n s , a
n d
e th
-
n ic
it ie
s .
C o
m m
it m
e n
t to
d iv
e rs
it y a
n d
e q
u a l o
p p
o rt
u n
it ie
s .
D iv
e rs
it y
n e
tw o
rk s .
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s , w
o rk
-l if
e b
a la
n c e s
u p
p o
rt .
T ra
n s p
o rt
t o
/f ro
m w
o rk
.
F a
m il y
d a
y s .
R e
li g
io u
s h
o li
d a y c
e le
b ra
ti o
n s .
F ir
m 6
(I n
d ia
)
L a rg
e m
u lt
ib il
-
li o
n -d
o ll
a r
fi rm
p ro
v id
in g
a w
id e
ra n
g e o
f s o
ft -
w a re
- a n
d B
P O
-
re la
te d
s e rv
ic e s
G lo
b a l
H R
L e a d
/M a le
S e n
io r
M a n
-
a g
e r/
M a le
N e
a rl
y 9
0 ,0
0 0
e m
p lo
y e
e s a
c ro
s s
o v
e r
5 0
c o
u n
tr ie
s . A
v e
ra g
e a
g e
2 4
– 2
5 . 2
5 %
f e
m a
le . A
p p
ro x
im a
te ly
8 0
% o
f s ta
ff b
a s e
d i n
I n
d ia
, o
f
w h
ic h
o v
e r
9 0
% w
e re
I n
d ia
n f
ro m
a r
a n
g e
o f
s ta
te s , re
g io
n s , a
n d
e th
-
n ic
it ie
s .
C o
m m
it m
e n
t to
g e n
d e r
n e u
tr a l w
o rk
in g
e n
v ir
o n
m e n
t.
L e
a d
e rs
h ip
a n
d m
e n
to ri
n g
p ro
g ra
m s f
o r
w o
m e n
.
A ffi
n it
y n
e tw
o rk
s a
n d
e m
p lo
y e e c
o u
n c il s .
C o
m m
u n
it y
p ro
je c ts
.
J o
b a
n d
g e
o g
ra p
h ic
r o
ta ti
o n
.
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v e , d
a y c
a re
, c a re
e r
b re
a k s .
T ra
n s p
o rt
t o
/f ro
m w
o rk
.
F a
m il y
d a
y s , d
iv e rs
it y d
a y s .
R e
li g
io u
s h
o li
d a y c
e le
b ra
ti o
n s .
F ir
m 7
(I n
d ia
)
S p
e c ia
li z e s i
n
B P
O a
n d
s o
ft -
w a re
t ra
in in
g
N a ti
o n
a l
H R
L e a d
/M a le
N e
a rl
y 4
,0 0
0 e
m p
lo y
e e
s . A
v e
ra g
e
a g
e 2
7 – 2
8 . 2
9 %
f e
m a
le . A
p p
ro x
i-
m a
te ly
9 5
% o
f s ta
ff b
a s e
d i n
I n
d ia
,
o f
w h
ic h
o v
e r
9 0
% w
e re
I n
d ia
n
fr o
m a
r a
n g
e o
f s ta
te s , re
g io
n s ,
a n
d e
th n
ic it
ie s .
C o
m m
it m
e n
t to
e q
u a l o
p p
o rt
u n
it ie
s a
n d
a ffi
r m
a ti
v e a
c ti
o n
.
D iv
e rs
it y
n e
tw o
rk s .
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v e , d
a y c
a re
, c a re
e r
b re
a k s .
T ra
n s p
o rt
t o
/f ro
m w
o rk
.
F a
m il y
d a
y s , d
iv e rs
it y d
a y s .
R e
li g
io u
s h
o li
d a y c
e le
b ra
ti o
n s .
F ir
m 8
(F o
re ig
n )
F re
n c h
s o
ft w
a re
a n
d c
o n
s u
lt a n
c y
fi rm
C E
O /M
a le
1 0
,0 0
0 e
m p
lo y
e e
s . A
v e
ra g
e a
g e
3 4
. A
v e
ra g
e a
g e
o f
2 8
i n
I n
d ia
. 2
5 %
fe m
a le
. E
m p
lo y
e e
s i n
I n
d ia
f ro
m a
ra n
g e
o f
s ta
te s , re
g io
n s , a
n d
e th
-
n ic
it ie
s .
D iv
e rs
it y
n e
tw o
rk s .
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v e , d
a y c
a re
, c a re
e r
b re
a k s .
T ra
n s p
o rt
t o
/f ro
m w
o rk
.
F a
m il y
d a
y s , d
iv e rs
it y d
a y s .
R e
li g
io u
s h
o li
d a y c
e le
b ra
ti o
n s .
F ir
m 9
(F o
re ig
n )
U S
I T
a n
d m
a n
-
a g
e m
e n
t c o
n s u
l-
ta n
c y fi
r m
S e n
io r
P a rt
n e r/
M a
le
1 7,
0 0
0 e
m p
lo y
e e
s . 8
% o
f g
lo b
a l
w o
rk fo
rc e
b a
s e
d i n
I n
d ia
, w
it h
a n
a v
e ra
g e
a g
e o
f 2
8 . 4
0 %
f e
m a
le .
E m
p lo
y e
e s i n
I n
d ia
f ro
m a
r a
n g
e o
f
s ta
te s , re
g io
n s , a
n d
e th
n ic
it ie
s .
D iv
e rs
it y
n e
tw o
rk s .
D iv
e rs
it y
d a
y s .
L e
a d
e rs
h ip
a n
d m
e n
to ri
n g
p ro
g ra
m s f
o r
m in
o ri
ty g
ro u
p s .
M in
o ri
ty g
ro u
p a
lu m
n i n
e tw
o rk
s .
J o
b a
n d
g e
o g
ra p
h ic
r o
ta ti
o n
.
C o
m m
u n
it y
p ro
je c ts
, p
ro -b
o n
o a
c ti
v it
ie s .
C o
m m
it m
e n
t to
s u
p p
o rt
in g
w o
rk l if
e b
a la
n c e .
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v
e , d
a y c
a re
, c a re
e r
b re
a k s .
(C o
n ti
n u
e d
)
206 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
Human Resource Management DOI: 10.1002/hrm
F ir
m 1
0
(F o
re ig
n )
U S
B P
O a
n d
H R
c o
n s u
lt a n
c y fi
r m
S e n
io r
H R
L e a d
/F e m
a le
N e
a rl
y 3
0 ,0
0 0
e m
p lo
y e
e s . A
v e
ra g
e
a g
e 4
1 . 2
9 %
o f
g lo
b a
l w
o rk
fo rc
e
b a
s e
d i n
I n
d ia
, w
it h
a n
a v
e ra
g e
a g
e o
f 2
8 . 3
5 %
f e
m a
le . E
m p
lo y
e e
s
in I n
d ia
f ro
m a
r a
n g
e o
f s ta
te s ,
re g
io n
s , a
n d
e th
n ic
it ie
s .
C o
m m
it m
e n
t to
e q
u a l o
p p
o rt
u n
it ie
s a
n d
a ffi
r m
a ti
v e a
c ti
o n
.
M in
o ri
ty n
e tw
o rk
g ro
u p
s .
D iv
e rs
it y
d a
y s .
L e
a d
e rs
h ip
a n
d m
e n
to ri
n g
p ro
g ra
m s f
o r
m in
o ri
ty g
ro u
p s .
J o
b a
n d
g e
o g
ra p
h ic
r o
ta ti
o n
.
C o
m m
it m
e n
t to
s u
p p
o rt
w o
rk -l
if e b
a la
n c e .
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s .
M a
te rn
it y
l e
a v e , d
a y c
a re
, c a re
e r
b re
a k s .
F ir
m 1
1
(F o
re ig
n )
U S
S o
ft w
a re
C o
m p
a n
y
D ir
e c to
r/ M
a le
1 0
,0 0
0 e
m p
lo y
e e
s . A
v e
ra g
e a
g e
3 5
.
2 0
% o
f w
o rk
fo rc
e b
a s e
d i n
I n
d ia
,
w it
h a
n a
v e
ra g
e a
g e
o f
2 8
. 3
0 %
fe m
a le
. E
m p
lo y
e e
s i n
I n
d ia
f ro
m
a r
a n
g e
o f
s ta
te s , re
g io
n s , a
n d
e th
n ic
it ie
s .
D iv
e rs
it y
g ro
u p
s .
D iv
e rs
it y
d a
y s .
L e
a d
e rs
h ip
a n
d m
e n
to ri
n g
p ro
g ra
m s f
o r
m in
o ri
ty g
ro u
p s .
J o
b a
n d
g e
o g
ra p
h ic
r o
ta ti
o n
.
F le
x ib
le w
o rk
in g
o p
p o
rt u
n it
ie s , w
o rk
-l if
e b
a la
n c e s
u p
p o
rt .
M a
te rn
it y
l e
a v e , d
a y c
a re
, c a re
e r
b re
a k s .
In d
u s tr
y
B o
d y
S o
ft w
a re
a n
d I
T
A s s o
c ia
ti o
n
S e n
io r
R e p
-
re s e n
ta ti
v e
/
F e m
a le
– E
x p
li c it
c o
m m
it m
e n
t a n
d i n
it ia
ti v e s t
o e
n h
a n
c e d
iv e rs
it y a
n d
in c lu
s io
n a
c ro
s s t
h e i n
d u
s tr
y .
T A
B L
E
I
S a
m p
le P
ro fi
le a
n d
I n
c id
e n
c e
o f
D iv
e rs
it y
M a
n a
g e
m e
n t
P o
li c
ie s
a n
d I
n it
ia ti
v e
s (
C o
n ti
n u
e d
)
F ir
m s
a n
d
L o
ca ti
o n
o f
H e a d
q u
a r-
te rs
( In
d ia
o r
F o
re ig
n )
S e rv
ic e s
In te
rv ie
w
P a rt
ic ip
a n
ts
(R o
le /
G e n
d e
r) W
o rk
fo rc
e C
o m
p o
si ti
o n
D iv
e rs
it y M
a n
a g
e m
e n
t P
o li ci
e s
a n
d I n
it ia
ti v e s
Human Resource Management DOI: 10.1002/hrm
TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 207
During each of
the interviews,
the researcher’s
interpretation of the
participants’ views
was checked with
the interviewees to
enable reflexivity
and to check that
the researcher’s
understanding
resonated with that of
the participants.
the study, and so this is preserved in the sample details provided in Table I and the interview data presented in the following section (Bell & Wray-Bliss, 2009).
Findings
The interview and documentary data revealed that D&I management were key elements of the HR strategies adopted by the sample firms and were embraced extensively to enhance the inte- gration of their business and HR strategies. The types of D&I management policies are outlined in the last column of Table I. Common policies included explicit commitments to diversity and equal opportunities underpinned by initiatives such as employee affinity network groups, leader- ship and mentoring programs, and flexible working opportunities.
The interview and documen- tary data revealed that the policies in place were very much driven by strategic HR and business case inter- ests. The sample firms were rapidly expanding but faced severe recruit- ment and retention difficulties. In light of this, D&I management was seen by the participants to be a tool for assuaging these challenges, at least to some extent. In the busi- ness environment in which they operated, if a firm did not offer D&I policies, it could potentially lose tal- ent to competitor firms, while inno- vations in this regard could provide a source of competitive advantage, albeit short-lived due to ongoing competitor replication. A strategic approach to D&I management was therefore required, as recruitment and retention directly impacted on organizational performance in terms of costs and service delivery, particularly as turnover rates were of substantial significance to clients in commis- sioning services because of the potential impact on service levels. Furthermore, D&I management was also a corporate social responsibility con- cern, due to the importance of a firm’s image and policies in providing a competitive advantage in attracting and retaining staff as well as winning client work. In addition, a strategic approach to diversity management was adopted because a het- erogeneous workforce was perceived to enhance creativity and innovation, although the partici- pants and firms expected rather than validated this putative link.
In line with these drivers, each of the par- ticipants stated that age, gender, and intra- and
diversity; and their views on the nature and degree of the tensions and challenges they encountered in these areas.
Before commencing the data collection pro- cess, the interview schedule was piloted to ensure that the questions were relevant and would gen- erate valid and reliable data. Any ambiguity or uncertainty over the phrases or terminology highlighted in this process was identified and then adjusted. During each of the interviews, the researcher’s interpretation of the participants’ views was checked with the interviewees to enable reflexivity and to check that the researcher’s under- standing resonated with that of the participants.
The duration of the interviews spanned from 45 to 90 minutes. Each interview was digitally recorded and then professionally transcribed. This transcription was double-checked to ensure the accuracy and integrity of the transcripts. Many of the interviewees also supplied relevant organi- zational literature, including guides highlighting the diversity and corporate social responsibility initiatives in operation in their firms, policy docu- ments, annual reports, and recruitment brochures. The lengths of these documents ranged from 21 to 164 pages. These papers were useful in provid- ing insight into the nature and extent of the D&I measures in place. In addition, they were used to consolidate the interview data and to triangulate the participants’ accounts of organizational poli- cies and data.
A template-based approach was adopted for the integrated analysis of the interview and docu- mentary data because it is well suited to the exami- nation of participants’ perceptions and allows for iterative flexibility (King, 2012). An initial template was devised to reflect the a prioiri themes, channels of diversity, and research questions investigated in the study. Higher-order themes of gender, age, and intra- and international diversity were created together with related subcategories framed by the focus of the research questions and study themes. This preliminary template was tested using five of the transcripts to enable the suitability of the cod- ing to be examined and to reflect on the role of the researcher’s background and assumptions in shap- ing the analysis performed. This led to the refine- ment of some of the subcategories, as appropriate. A final template was then produced and admin- istered with the use of Nvivo 9, which assisted in organizing and managing the analysis of the entire data set (Bazeley, 2007).
The quotes presented in the following section are representative and/or illustrative of the experi- ences and arrangements identified in the analysis (Rynes & Gephart, 2004). Anonymity and confi- dentiality were offered to all of the participants in
208 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
Human Resource Management DOI: 10.1002/hrm
The documentary
data supplied by the
participants featured
commitments to
age diversity and
inclusion as part
of their strategies
to enhance
staff utilization
and retention,
through fostering
supportive working
environments and
career opportunities.
required meant that most of their recruitment centered on hiring graduates directly from uni- versity campuses, who were up-to-date with cur- rent and emerging software and technologies. The recruitment of these individuals, however, generated a number of challenges. Many of the participants characterized these recruits as often being “immature” and “undisciplined,” requir- ing substantial investment in their training and development to induct and integrate them into their organization and its culture. Attrition among this group was also typically high, with rates as high as 80 percent reported by the par- ticipants, particularly among those engaged in the delivery of BPO services. The research par- ticipants indicated that this career behavior was most pronounced among graduate staff with three to seven years’ experience, before and after which retention was typically more stable. This was linked to age- and generation-related expectations and aspirations. The following two quotes are indicative of the participants’ views on these developments:
This generation born after 1990 … “Generation Y” … have started getting into IT in the last three/four years. Their aspirations are different. Their thinking is different. Their value systems are dif- ferent. Their loyalties are different. They would like everything today. If not, that’s it. (Firm 8, CEO)
Earlier people would join and maybe retire from the organization. Now the youngsters specifi cally are changing … they might change jobs every six months. … This trend is very prevalent until the age of 30/32. Then things typi- cally become more stable. (Firm 5, Senior HR Manager)
The interview data revealed that the degree of protean and boundaryless career behavior exer- cised by staff varied according to their age/gen- eration and the stage at which they were in their careers. This is not to say that career behavior of this nature diminished after being in the industry or with a firm for over seven years because there was pressure for individuals to keep advancing in their careers. However, for this group, this action was primarily driven by internal competition and could prompt firm exit and/or a change in career path and occupation.
The moment you have the feeling that you have a successor, you’re gone, you’re dead. (Firm 7, National HR Lead)
international diversity were the main foci of their D&I interventions. The researcher did not impose or restrict the interviewees to these categories. The participants’ focus on these particular categories reflected the challenges faced by the firms and the extent to which it was deemed necessary to recruit and retain talent across these dimensions in order to be able develop more creative and innovative workplaces.
The findings presented next are illustrative of the accounts and data provided by the partici- pants. Where variations in the views and expe- riences of the participants and their firms were identified, this is highlighted in the following text.
Age Diversity: The Management of a Young but Increasingly Intergenerational Workforce
The documentary data supplied by the participants featured commit- ments to age diversity and inclu- sion as part of their strategies to enhance staff utilization and reten- tion, through fostering supportive working environments and career opportunities. These goals were very much influenced by the rationales of the RBV and business case argu- ments. However, the analysis of the participants’ accounts and organiza- tional data cast light on the tensions and challenges faced with regard to organizational realities, practice, and behavior.
The documentary data revealed that the mean age of staff across the sample firms’ offices in India ranged from 24 to 28, with the large major- ity of employees aged below 30. This was attributed by the partici-
pants to the age structure of the working popula- tion in India, the relatively short history of this “new” sector and its presence in India, and the recruitment and HR planning strategies adopted by the firms. Two of the companies were estab- lished in India in the 1960s and 1970s, respec- tively, whereas the remaining firms had been operating in the country or been established only since the late 1990s. The sector and each of the firms had expanded rapidly and so experienced an almost constant need to recruit new staff to capitalize on the available growth opportunities, particularly given the speed and scale of turnover experienced.
These features combined with the nature and level of the knowledge, skills, and qualifications
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TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 209
intergenerational relationships and knowledge sharing, but such barriers between age groups were yet to be overcome.
Each of the participants made reference to their efforts to create an inclusive environment. Yet at the same time, long-term firm or industry tenure was in some cases regarded as almost nega- tive behavior. This revealed conflicting tensions between widely held views and the implemen- tation of related initiatives, which undermined the D&I policies operating in the firms as well as efforts to extend organizational commitment.
I have been in the IT industry 11 years. That makes me a relic. … In fact, we are creating a rogues gallery of people who have spent more than 10 years in the company. (Firm 1, National HR Lead)
The participants indicated that when tenured employees reached 40 years of age, the position of these individuals reportedly became more precari- ous because of these attitudes, the pressure to con- stantly keep their skills up-to-date, and scrutiny over their level of remuneration relative to younger staff. Effectively, employees of this age and above were perceived to have reached their shelf life. In such instances, some of the participants conceded that these individuals ran the danger of being fired because they could be deemed overpriced for the roles that they were performing.
The RBV and business case arguments do not specify an optimum degree of age diversity, and it may be that the implicit age and tenure barri- ers operating at the firms were a product of the national context, the nature of these firms, and their performance and cost-benefit concerns. However, negative attitudes and practices arguably served to stifle the benefits that could be gained from increased age diversity and ran counter to the firms’ stated policy goals of supporting and enhancing this type of diversity to improve orga- nizational performance and develop a sustainable competitive advantage, as advocated by the RBV.
Gender Diversity: An Attenuated Balance
At a sectoral-level, female representation was esti- mated to be 27 percent (Senior Representative, Industry Body), which is comparable with the proportions found in the United States at 26.2 percent (Adya, 2008). Across the sample, female representation ranged from 14 to 40 percent, with women most prevalent in areas such as BPO and testing. As well as being segmented into these roles, women were also primarily concentrated in low-ranking positions. The documents provided by the participants underscored the objective of enhancing gender diversity and in some cases
One of the organizations included in the sam- ple had members of staff who had been with them for up to 16 to 17 years, which was very much the exception. This was because workers with this extensive but dated IT knowledge faced almost unrelenting pressure to engage in skill upgrading to remain at the cutting edge of developments in software and IT.
To improve the retention of knowledgeable and experienced staff and to support age diversity, the participants stated that they had developed a range of interventions to accommodate vary- ing needs and behavior within their firm and to enable staff to grow. This included the develop- ment of varied career paths to complement the growth and diversification of their businesses, but also to reflect the link between age and rapid change in skills, qualifications, and software. Individuals hired as software engineers could potentially progress through to technical or proj- ect leadership roles. Following this, they may then either be given the option of continuing with a technical line of work through continuous skill upgrading or moving into business development, for example.
Widening age diversity also prompted the development of a variety of D&I interventions. Short-term or immediate rewards and incentives are associated with workers in this field of work, including on-the-spot credits and rewards (see, e.g., Yanadori & Kang, 2011). However, there was an increasing need to tailor and enhance the flex- ibility of incentives available to support the reten- tion of staff above the age of 30.
A fresh university graduate would like everything cash-in-hand rather than waiting for things going into their retire- ment funds. But if we have somebody who is mid age, then they start thinking about saving towards their retirement, so we have redesigned the compensation and HR initiatives to take care of these kind of various needs. (Firm 2, Global HR Lead)
As well as responding to these drivers, the par- ticipants also identified a need to create a more inclusive working environment and culture to support intergenerational interaction and cohe- sion. For example, social networking platforms were used extensively to communicate with col- leagues by recent university recruits and young members of staff, whereas these platforms were not used to the same extent by older or more senior workers, who typically relied on telephone, e-mail, or face-to-face contact. Consequently, interventions were deemed necessary to develop
210 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
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However, despite the introduction of these measures, women’s participation was often cir- cumscribed by the intersection with age. The ten- dency for a large proportion of females to exit the workforce at the age of 30 remained entrenched, despite the gender D&I interventions imple- mented by the sample firms.
Once they are in a stage where they get married … we see a lot drop out. Unfortunately, you can’t help it. When she fi nds that she has got a good match who wants her to migrate to another part of the country, she resigns. It’s a case of the marriage proposal or the job. … After the marriage … the girl will go sit idle and just do nothing. (Firm 4, Senior HR Manager 2)
This behavior was adduced to a combina- tion of societal, marital, and familial pressures. Consequently, the practices introduced by the participants typically had a limited impact on the behavior of their female staff.
Even today, women are supposed to be second fi ddle. If I and my wife go back home in the evening after a hard day, I will go to the TV, see cricket, and she will go to the kitchen to make tea. … It’s the culture … if I did it, it’s the news in the locality that, look, yesterday I made tea for my wife. You can’t imagine that (Firm 1, National HR Lead)
Clearly, this was a male-oriented view, which conflicted with the aspirations of the female inter- viewees (see the earlier quote from a Senior HR Manager from Firm 4). However, surprisingly, the research participants stated that complaints in relation to discrimination and unequal treatment were very rare.
Frankly speaking, I don’t even get to hear those escalations or that they’re being discriminated against or that they’re not being given the role or promotion or salary increase. You don’t see any differ- ence. (Firm 2, National HR Lead)
This may be because the participants did not wish to disclose such information. Alternatively, it could be that female members of staff were not active in pursuing their concerns, and this could be attributed to not only social attitudes but also the shortcomings of the legislation in India to tackle gender discrimination. Nevertheless, fur- ther research into the apparent silence of women is needed to investigate the views, experiences, and exercise of voice among this sizeable minority.
promised “gender neutrality” and/or “affirmative action” to support equality of opportunity, busi- ness interests, and corporate social responsibility commitments.
Female participation was reported by the inter- viewees and the representative from the industry body to be increasing. This was in part due to a more equitable gender balance in the number of students graduating with engineering degrees. As engineers were the main focus of recruitment for these firms, this was assisting in improving the gender balance, along with organizational poli- cies, targets, and even quotas. Interestingly, gen- der balance and attrition rates were published in company reports and were reported to be of increasing interest to clients. The management of diversity and inclusion in the firms was there- fore influenced by external actors, reinforcing the need for the RBV to extend beyond its preoccupa- tion with an internalized focus.
A range of measures was deployed to attract and retain women. These included self-defense training, special facilities for women during preg- nancy, the option of extended maternity leave (from 3 months to up to 12), day care facilities, home working, and flexible working hours.
Part-time working arrangements were, how- ever, virtually nonexistent, except in areas such as HR. Over 95 percent of the IT services work- force in India was estimated to be full time (Senior Representative, Industry Body). Long working hours were very much the norm. This was particu- larly the case in the context of software develop- ment, where reduced working hours or employee discretion over their temporal and locational working arrangements was severely restricted.
It’s not a nine-to-fi ve government job. When there is no work, good. If you’re into a project, there are deadlines to be met and we need to meet those dead- lines. (Firm 5, Senior HR Manager)
In part to respond to these irregular working hours, one measure that was becoming increas- ingly common across the sample firms included the provision of shuttle or cab transportation to and from work or the local metro stop. Each of the interviewees perceived these services to play an important role in enhancing the participation and inclusion of women.
After eight o’clock, we have our own cabs for women employees. They get a cab with a guard to make sure that they are dropped home … soon we will be running this cab facility 24/7. (Firm 3, Senior HR Manager)
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TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 211
The business case
for diversity by
nationality was
emphasized by each
of the research
participants because
of the role that this
played in diffusing
knowledge and
winning international
business.
in the United Kingdom and United States. This was due to the increasing recognition of the need to address existing imbalances in this regard.
Increasingly, people are realizing that their workforce can’t be all Indian. You need to have a lot more diversity in your workforce, and so they are put- ting effort to bring that diversity. (Senior Representative, Industry Body)
As multinationals, each firm operated across multiple national sites, with Firm 6 operating in over 50 countries. Yet non-Indian nationals typi- cally accounted for less than 10 percent of over- all staff for Firms 1 through 7 in their office in India. For example, only 6.8 percent of Firm 2’s workforce was non-Indian. This was partly due to the relative size of their national operations out- side India, but also the difficulty in attracting foreign talent both at home and abroad.
The business case for diversity by nationality was emphasized by each of the research participants because of the role that this played in diffusing knowledge and winning international business. Employees with technical and functional com- petencies were rotated between countries to help grow the busi- ness, work on projects, or address skill shortages. However, such talent flows were largely one directional, as it was reported to be difficult to get foreign talent or expats to work in India other than for a small number of weeks or less than six months, thereby limiting the degree of international diversity and its potential impact of competitive advantage and performance. To some extent this may be shaped by the restricted forms of diversity championed by the sample firms in India.
Discussion and Conclusions
Interest in the management of diversity and inclu- sion in India is expanding rapidly among man- agers, academics, and policymakers (Budhwar & Varma, 2010). This has stimulated an increase in related inquiry. However, there is still a need for this research to not only catch up with contem- porary organizational developments but to also provide a deeper understanding of the reality of D&I, rather than merely quantifying the practices in operation (as noted by Cooke & Saini, 2010; Greene & Kirton, 2010; Hoque & Noon, 2004; Kamenou, 2007; Nishii & Özbilgin, 2007).
Each firm had measures to support women’s return to work following childbirth. However, even so, the participants indicated that many women chose not to return to work. For those returning to fields of work outside BPO such as software devel- opment, they often faced the same challenges and pressures as those in the later stages of their careers noted earlier, depending on the length of time that they took out of work and the degree to which technical knowledge was fundamental to their role. Even in nontechnical areas, they would often be assigned to roles with relatively limited career progression opportunities. The strategic goals and commitments extolled by the organi- zations in their policy documents were therefore not fully supported by organizational practice or worker behavior in the firms, thereby impeding the realization of the D&I benefits espoused by the RBV and business case arguments.
Intra- and International Diversity: Ethnicity, Religion, Social Class, and Nationality
The documents supplied by the participants highlighted their firm’s goals and commitments in relation to enhancing the integration of staff from diverse multicultural backgrounds, so as to encourage creative, innovative and inclusive working environments as internationally com- petitive and expanding “global firms.” Diversity by religion, ethnicity, language, social class, and regional origin was extensive in each of the sam- ple firms’ Indian offices.
To support an inclusive environment, the firms and participants had encouraged the cre- ation of representative groups, organized events, and installed facilities. Language, religion, and cultural awareness training was provided to enhance staff cohesion and understanding. This was increasingly required as the firms housed staff from a growing range of social backgrounds and so-called tier 1 and 2 cities and universities. In addition, religious- and geographic-related celebrations were organized, with all members of the organization invited to attend. While this served to recognize and accommodate the diversity evident within these firms, the inter- viewees stated that staff and management often referred to so-called castes and so effectively rec- ognized and reinforced the legitimacy of these distinctions by religion, ethnicity, social class, and region/state.
International diversity in the firms’ Indian offices was less pronounced. Although this may be offset to some extent by the level and forms of diversity previously discussed, the participants referred to attempts to recruit talent from outside India, including efforts to recruit from universities
212 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2015
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Many of the
organizations
included in this study
worked closely with
the industry body,
which amplified
their influence at a
national level.
This study addressed this need by examining D&I management in leading IT services multina- tionals in India through the lens of top-level man- agers because of their role in shaping practice and behavior. The findings from this study revealed a variety of countervailing tensions along the dimensions of age, gender, and intra- and interna- tional variation that limit the scope for not only strategic alignment, but also the materialization of the gains vaunted by the RBV and business case arguments. In place of this, it could be argued that a somewhat pragmatic approach to workforce diversity was adopted in order to keep abreast of D&I policy developments in competitor firms domestically and internationally and be viewed as socially responsible organizations both internally and externally.
With respect to age, each of the participants had introduced measures to enhance commit- ment and respond to the interests of a young but increasingly intergenerational workforce. Yet at
the same time, firm members held views concerning staff tenure/age limits and their associated wage costs, which shaped practices and behavior within their organizations. In order to counter this, there is a need to expand training opportuni- ties and the range of nontechnical career paths available within these organizations, which are likely to grow as they expand and move up the value chain into new areas of service provision. In addition, there is a need for effective training along the lines proposed by Cocchiara et al. (2010), combined with cultural
change to tackle the views and attitudes of staff and senior managers. This must be reinforced by challenging these views and attitudes rather than supporting them through the semiotics of organi- zational practice and discourse, such as referring to older staff as relics or assembling an old rogues’ gallery.
These findings also highlight the role of age, industry, and societal context in shaping so- called boundaryless and protean career behavior (Dickmann & Baruch, 2011; Saxenian, 2005). The interaction between these dimensions is currently underacknowledged in the existing literature on these types of career behavior, and therefore greater understanding and analysis of these vari- ables is required.
Women’s representation was not only seg- mented but also moderated by age. A range of interventions was in evidence, but domestic, fam- ily, and societal pressures moderated the nature
and duration of women’s participation. Without addressing these pressures, it is unlikely that orga- nizational measures will lead to dramatic changes in this behavior. Part-time arrangements may enable some women to remain at work. However, it must be noted that in other national and organi- zational contexts, where it is women who primar- ily work part time, such arrangements can impact on the career progression and training opportuni- ties available to part-timers (see, e.g., DTI, 2004). Therefore, it is important that in introducing these arrangements, they may increase gender diversity but also curtail women’s opportunities. The findings from this study underscore the need for future research to gain insight into women’s views on D&I in this environment in order to investigate the degree of discrimination and seg- mentation in operation in this important area of the knowledge economy in India.
A range of interventions designed to enhance intranational D&I was in place across the sample. Yet long-standing views with regard to ethnic social classes known as caste remained persistent. It is clear that the legitimacy of these attitudes needs to be tackled both within and outside these firms. This is something that ought to be champi- oned by organizational leaders as well as members of staff. Again, this emphasizes the need for the RBV and business case to adopt a broader internal- external lens if the goal of attaining a diverse and inclusive firm is to be achieved. Many of the orga- nizations included in this study worked closely with the industry body, which amplified their influence at a national level. Therefore, they were well placed to influence attitudes both within and outside their firms.
Indeed, the influence of these actors and their role in shaping the landscape for D&I arguably extends to the attraction of foreign talent from developed countries. The appeal of working in India is, of course, likely to be shaped by individu- ally held perceptions of living and working condi- tions in the country, but also the extent to which the support for D&I from these actors and orga- nizational rhetoric and practice is communicated internationally (SHRM & EIU, 2009). Without act- ing as agents of change with respect to these per- ceptions, it is likely that the difficulties the firms encountered in attracting international talent into their Indian offices will continue to exist to varying degrees until existing views, policies, and conditions move forward.
In terms of the study’s limitations, the sample structure does not provide a polyphonic insight and so may have been affected to some extent by management and, in some cases, single-respon- dent bias. It may also be that the researcher’s
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TENSIONS AND CHALLENGES IN THE MANAGEMENT OF DIVERSITY AND INCLUSION IN IT SERVICES MULTINATIONALS IN INDIA 213
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country of origin and related views on diversity influenced the interpretation of the data and the firms’ policy interventions. However, the inter- view data were triangulated with documentary evidence and the views of a key actor from the industry body to check the researcher’s interpreta- tion and the accounts of the participants, which, together with double-checking the interpretation and coding, served to filter this influence and limit the potential for the findings to be skewed or biased.
The external validity of the findings was potentially influenced by the sampling strategy and the size and composition of the sample, but the lens acquired by this study provides a unique insight into the strategic policy agendas of senior HR executives in an increasingly challenging and
important environment for the management of human resources. Moreover, the objective of the study was not to generalize or quantify D&I prac- tice. Instead, the aim was to gain a deeper insight into the challenges and tensions generated by D&I management in this important and dynamic emerging environment and to contribute to the literature examining the application and viability of the business case and RBV rationales.
Note
1. In this article, an inclusive defi nition of IT services is
adopted, encompassing a range of computer- and
software-related activities, including business pro-
cess outsourcing (BPO), consultancy and systems
architecture, engineering, integration, and infrastruc-
ture services (NASSCOM, 2011).
RORY DONNELLY, PhD, is a reader in Human Resource Management and Organisational Behaviour at Birmingham Business School in the United Kingdom. His research interests
include the management of the employment relationship, careers, and fl exibility in knowl-
edge-intensive organizations and forms of work.
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