Diversity Management as a Tool of Sustainability of Competitive Advantage

Urbancová, Hana; Hudáková, Monika; Fajčíková, Adéla

doi:10.3390/su12125020

Open AccessArticle

Diversity Management as a Tool of Sustainability of Competitive Advantage

by

Hana Urbancová

^1,*

,

Monika Hudáková

² and

Adéla Fajčíková

³

¹

Department of Human Resources, University of Economics and Management, Nárožní 2600/9a, 158 00 Prague 5, Czech Republic

²

Department of Management, Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Tr. Andreja Hlinku 2, 949 76 Nitra, Slovakia

³

Department of Management, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, Suchdol, 165 00 Prague, Czech Republic

^*

Author to whom correspondence should be addressed.

Sustainability 2020, 12(12), 5020; https://doi.org/10.3390/su12125020

Submission received: 6 May 2020 / Revised: 10 June 2020 / Accepted: 16 June 2020 / Published: 19 June 2020

(This article belongs to the Special Issue Sustainability in Business Processes Management)

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Abstract

:

Diversity is a phenomenon that, due to increasing globalization, appears ever more frequently in all areas of human activity and performance, including the labor market and working teams. In light of these changes, this article aims to identify and evaluate the practice of diversity management as a factor of the sustainability of competitive advantage with regard to the examined factors of diversity. The results were obtained through primary analysis via a questionnaire survey at 549 Czech companies. The results indicate that there is a statistical dependence between the application of diversity management and the commercial sector in which the organization operates and the size of the organization. Organizations identified the following as the most significant benefits of the application of diversity management: retention of key employees (43.9%), improved motivation and performance of existing employees (39.3%), and improvement to the actual atmosphere in the workplace (33.9%). One recommendation for organizations is to focus more on this current topic, as the lack of a qualified workforce is becoming more pronounced. In this regard, it will also be necessary to devote sufficient attention to groups of potential workers who have hitherto been overlooked. The application of diversity management can be a successful tool to gain a competitive advantage in managing human resources.

Keywords:

competitive advantage; diversity; diversity management; labor market; survey; the Czech Republic

1. Introduction

This article focuses on areas of the labor market and commercial sectors that most frequently exhibit employee diversity. According to Workforce America! Managing Employee Diversity As a Vital Resource, diversity is “otherness or those human qualities that are different from our own and outside the groups to which we belong, yet present in other individuals and groups”. Diversity is a social phenomenon very closely related to globalization [1,2]. Employee diversity subsequently supports creativity and a capacity for innovation within teams at the organizational level, and yet diversity influences the labor market as well. Diversity can provide the basis for competitive advantage, and diversity management is, thus, becoming an important approach in human resource management [3,4,5,6,7]. Diversity criteria are generally considered to include age, gender, ethnicity and nationality, religion, and disability [8,9].

Given that the world is becoming ever more globalized, factors that cause heterogeneity in the labor market as well as in companies themselves are on the rise, e.g., demographic changes, a decreasing number of workers and, thereby, increasing workforce demand, increased employment of women, etc. [6,10,11,12,13]. In association with globalization, phenomena such as the employment of women in foreign workforces and increased international migration are often mentioned [14]. It can be stated that workforce diversity is assuming increasing importance due to the influx of people into the European Union and the free choice of employment roles within the EU [15]. In the past 20 years, all European societies have noted an increase in migration [16].

It is ever more important to trace the incidence of diversity in all fields of trade within commercial sectors. Yet the situation differs significantly between the primary (agriculture, fishing, forestry), secondary (manufacturing, construction industries), and tertiary (the market and the non-market services sector) sectors in the areas of employment of workers of various age groups, genders, nationalities, etc., as confirmed by national statistics [17]. In the context of the contemporary pan-European activity, concerning the most extensive migration waves from the Middle East and Asia since World War II, diversity management (DM) has taken on a new significance [4,10,18].

Therefore, this article aims to identify and evaluate the practice of DM as a factor of the sustainability of competitive advantage with regard to the examined factors of diversity. A partial aim is to test the relationship between the selected qualitative markers of DM and to propose recommendations for representatives of organizations in the individual commercial sectors.

This article comprises five logically sequential sections. The first establishes the theoretical foundation of the article, summarizing the opinions of individual authors on issues relating to DM, its individual factors and specifics within the individual sectors: primary, secondary, and tertiary. It is followed by the Materials and Methods section, which outlines the research methods and techniques used in the analysis. This is followed by the Results section, which presents the achieved results, compares these results with similar studies carried out abroad as part of the discussion, and proposes recommendations. The final part of the article, the Conclusion, summarizes the analysis conducted.

2. Theoretical Background of the Work

The largest group imposing diversity in the labor market are foreigners—migrants. The labor market can be divided into various ethnic layers [19]. People from Europe are mostly represented at higher-level jobs, people with origins or nationalities outside of Europe are represented far more in the second group of jobs—less-qualified jobs [19]. However, the second group also presents a greater risk of job loss, lower wages, and less favorable working conditions. With regard to demographic changes in industrialized countries and their consequences for the labor market, the concept of age management, which is closely connected with diversity, is also growing in importance. Age management can be described as the integration of specific (human resource) management measures that are intended to face the challenge of population aging [20], where the goal is to allow each and every individual to remain active and healthy regardless of their age. The five practices of the age management concept as a whole were defined by Walker [21], namely recruitment (including exit at the end of the working career), training, development and promotions, flexible working practice, ergonomics and job design to avoid negative stress, learning and technology, and changing attitudes towards aging workers [20,22,23,24].

Despite improvements in the effectiveness of the labor market for certain ethnic minorities, significant differences persist between the employment and income of certain ethnic groups [25]. The question of employment for people representing two characteristics of diversity—nationality and religion—is becoming a pressing issue for modern society; namely the employment of migrants who practice Islam. There is a higher unemployment risk for immigrants from Islamic countries than for migrants from Europe [26]. Moreover, refugees from culturally remote Iran, Iraq, or Africa search for employment for longer than migrants from Eastern Europe or even Latin America. Their numbers are continuing to rise due to the rapidly growing wave of migration, and for this reason, it is critical to address these issues [27].

If the labor market is divided according to the individual commercial sectors, the greatest share of migrants is employed in the tertiary sector, followed by secondary and primary sectors. Significant changes in the employment of migrants from OECD countries were triggered by structural changes that began to place a greater emphasis on knowledge-based fields. The situation in question led to an increased demand for a highly qualified workforce through selective immigration policies [28]. The migration of skilled and highly qualified individuals in recent years has become an essential element of economic development and innovation policies of developed countries. This can be explained by the fact that certain skills that encourage improved competitiveness and economic growth are so specialized that it is necessary to seek out capable workers with these skills from all over the world [29]. The application of DM can be influenced by risks in the area of finance, human, organization, company management, or availability of information.

The majority of migrants in the primary sector work in agriculture as opposed to forestry. Certain countries are almost dependent on the seasonal employment of migrants. Employers in the agriculture/food industry rely on the availability of migrant workers as they enable them to achieve the greatest level of flexibility, which is very important in highly competitive globalized markets [30]. Yet, seasonality in agriculture is a limiting factor for the employment of people over longer timeframes.

However, more migrant workers may be found in the secondary sector than in the primary sector, mostly in the construction and processing industries. This has been confirmed by many studies, statistics, and surveys, for example by the Ministry of Labour and Social Affairs [31], hereafter referred to by its abbreviation MLSA). As an industry, construction provides a range of job opportunities. However, many potential employees in their “home” countries refuse to seek requalification, despite the possibility of working in less grueling construction professions, and, for this reason, employers tend to seek their workforce abroad [32]. For example, Russian migrants tend to look for jobs mostly in construction, followed by industry and agriculture [33]. In the Czech Republic, construction and the processing industries employ approx. 30% of foreign workers [34], just as is the case in neighboring Germany [35].

The largest number of jobs for migrants by far are offered in the tertiary sector through the service industry, hospitality, trade, health, and social care. Indeed, a significant number of migrants find work in hospitality. The main motive for these workers is the pursuit of personal development [36]. They want to learn a foreign language and gain work experience and this work provides an opportunity to meet local people. There are also negative aspects of the working conditions in this field, such as low wages, physical demands, discrimination, and management behavior [36]. Several working conditions in the tertiary sector represent an obstacle to the long-term employment of migrant workers.

In association with the employment of migrants, Möhring [37] focused on the system referred to as “Gastarbeiter”—those working long-term in a foreign country who typically find employment in the hospitality industry. Unlike many other studies of these issues, however, he does not overlook migrants who open their own businesses, most often in the fields of retail and hospitality. The emergence of “ethnic” restaurants has significantly contributed to the internationalization of the sale and consumption of food products.

The relationship between trade and migration and the possibility of stimulating trade between the host country and the countries of origin of the emigrants was also analyzed [38]. The results have indicated that a positive or negative effect was dependent on whether the foreign workers are employees or self-employed. Self-employment activity is significantly concentrated in certain fields, which include hospitality and retail.

Foreign workers are also distinctly represented in the field of health and social care. Healthcare and social services, modern and expansive fields, are also heavily dependent on foreign workers, both in the EU and Switzerland, though not as much as construction or hospitality. This is due to the requirements for qualifications [39]. The mobility of healthcare workers in the EU is a very significant phenomenon [40]. The growing need for qualified workers in direct long-term health and social care is linked to aging populations. Developed countries, therefore, strive to ensure care through the employment of women from abroad [41].

As in the hospitality industry, for healthcare jobs, the reason for working abroad is associated with the search for better working conditions and opportunities for professional development [40,41,42]. Migrant workers in care services represent a significant solution to the continually rising need to look after senior citizens in the public and private sectors [41,43]. Timonen and Doyle [44] focused on the relationships between migratory caregivers and recipients of care. Their conclusions testify to the fact that while these relationships are generally positive, significant racial and cultural tension was evident in vertical and especially horizontal relationships in the workplace. It is essential to add that the language barrier or problems arising from ethnic/cultural diversity in work relationships may reduce the level of care provided [45]. The circumstances emerging for the majority of migrants are that they work in physically and psychologically stressful situations and encounter various forms of discrimination [46].

Healthcare and caregiving (particularly home healthcare) are areas of frequent application by women from abroad who thereby support their families financially in poorer parts of the world [47]. A further reason is a shared responsibility for securing the family and, thus, making money and the desire for a better life, which is typical, especially for women from poorer (developing) countries. Their work abroad may support their families in their home country economically, but not emotionally [46]. Poor financial and family situations often compel women to accept work on the illegal job market. Their capacity to translate their cultural capital into economic capital is limited. These obstacles are overcome by women either using networks built on strong ties with their home countries or strong ties as part of their ethnic environment [48]. In association with the application of migrant women to the labor market, “multiple vulnerabilities” as women, migrants, and illegal workers occur [49]. The behavior of migrant women in the labor market is also influenced by factors such as, for example, the culture of their native and guest countries [50]. There is also an unavoidable conflict between family and gender (egalitarian) opinions that lead to inner conflict for many women [51] or the issue of high unemployment of migrant women associated with difficulties of reconciling family and work [52].

A study of global migration indicates that the majority of migrant women are employed in the tertiary sector—in services (food industry, healthcare, domestic work). In certain regions, these women are also employed in the manufacturing sector, but only a small number in agriculture. The high levels of employment of migrant women in services may be primarily explained by the low requirements for qualification. These include domestic services such as cleaning, childcare, hotel housekeeping, etc. [29].

The share of female migrants with a higher level of education is almost at the same level as men. Despite this, the number of women in highly qualified positions is relatively low. Women often encounter problems obtaining recognition for foreign degrees. The language barrier is a frequent cause of rejection for jobs in the public sector. Yet, many professions in the public sector have a high concentration of women [29,53].

The employment and inclusion of persons with disabilities (cognitive, developmental, intellectual, mental, physical, sensory, or a combination of multiple factors) in working teams also relates to diversity in the workplace. To be employed ranks among the primary social valuation of individuals in modern society and leads to social acceptance and a feeling of citizenship [54]. However, individuals with disabilities continue to be underrepresented in the labor market. People in a position to develop their talents in their work tend to be more satisfied and to contribute to the success of their employer. The UN addresses the employment of the disabled in its convention on the rights of persons with disabilities [55]. This defines the rights of persons with disabilities that should be ensured by all countries who have signed and ratified the convention. Incorporation of disabled persons in the work process is explicitly addressed by Article 29, which includes an emphasis on persons with disabilities having access to all types of employment in the public and private sectors, as well having the Ministry of Labour and Social Affairs [56] to support their opportunities for self-employment, private business, and initiating their own enterprises.

In this context, a significant role could be played by the tertiary sector—particularly the service industry—for those with disabilities, who face numerous obstacles in seeking employment. As an example, call centers are a potentially significant source of job opportunities [57]. Those with disabilities may also find employment in protected workshops or integrated businesses. A prerequisite for such status requires that 20–50% of the workforce is made up of those with disabilities. Such economically independent businesses allow those with disabilities to work under market conditions. Requirements for obtaining such positions depend on the skills and capabilities of the workers. Integration projects may be found particularly in areas such as gastronomy, gardening, carpentry, animal care, etc. [11,44]. Pagán [58] focuses on the use of self-employment activities for persons with disabilities, which allow for flexibility and better adaptation between their disability and professional life. Opportunities for employing those with disabilities in the tertiary sector outnumber those in the primary sector, where work tends to be associated with a greater degree of physical exertion.

Based on the theoretical review and comparison of the author’s opinions [1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58] two basic null hypotheses were formulated:

Hypothesis 1 (H1).

The application of DM is not dependent on the commercial sector in which the organization operates.

Hypothesis 2 (H2).

The application of DM is not dependent on the size of the organization according to the number of employees.

Given the examined diversity factors, it should be noted that the decisions of businesses in all commercial sectors to practice or not practice DM depend on the information available to these businesses, including knowledge of the specifics of the given commercial sectors. At the organizational level, for the success of DM in the individual commercial sectors, it is subsequently important to analyze and evaluate financial and human resources at the organizational level, the organizational structure of the company itself, and, last but not least, the approach of company management to the issues in question.

Hypothesis 3 (H3).

The application of DM is not influenced by the financial risk of the organization.

Hypothesis 4 (H4).

The application of DM is not influenced by human risk (lack of qualified personnel who would oversee the application of DM in the organization).

Hypothesis 5 (H5).

The application of DM is not influenced by organizational risk (the established organizational structure).

Hypothesis 6 (H6).

The application of DM is not influenced by company management.

Hypothesis 7 (H7).

The application of DM is not dependent on a sufficient amount of information on the issues in question.

All seven null hypotheses are evaluated according to the procedure set out in the Materials and Methods section.

3. Materials and Methods

The article was completed based on secondary analysis, synthesis of findings, and primary quantitative analysis in Czech companies. Primary data were obtained using the questionnaire technique of data collection in Czech organizations in the individual sectors of the economy, according to CZ-NACE. This involved a deliberate selection, in which businesses within the Czech Republic in all sectors were contacted so that the selected sample might be representative. A total of 549 organizations participated in the questionnaire; the results may be projected to the given selected sample. Only one respondent was contacted within each company. A respondent responsible for the operations of the company, e.g., a line manager, company director, etc., completed the questionnaire on behalf of the company. The selection sample size was defined using the Krejcie and Morgan (1970) [59] formula (N = 2,700,000 from Albertina database, with the required confidence level at 95% (standard value of 1.96), the acceptable deviation rate d = 0.03, and the expected deviation rate r = 0.04). Using this statistical approach for sample size computation and based on the aforementioned deviations, the minimum number of respondents was set at 164, which was met by the conducted survey (n = 549). The χ2 test was applied, there was no statistical difference between the distribution of organizations by size and expected distribution of the selected set (test criterion χ2 test p-value = 0.019 at α = 5%, i.e., 0.019 < 0.05). The results can be generalized to a basic set of organizations and the selected set of organizations is representative. The questionnaire respected the ethical perspective and anonymity of the respondents.

The composition of the organizations involved in the questionnaire survey was as follows:

by commercial sector: 19.8% from the primary sector, 20.2% from the secondary one, 60.0% from the tertiary sector (according to the Czech Statistical Office (CSO) the rate is approx. 10% organizations in the primary sector, 20% in the secondary sector, and 70% in the tertiary sector);
by organization size (according to the number of employees): 53.2% of small organizations (1–49 employees), 25.5% of medium-sized ones (50–249 employees), 21.3% of large ones (250 and more employees) (for example, the share of small and medium-sized enterprises in the total number of active business entities in 2017 was 99.8%. The share of value added for small and medium-sized enterprises in 2017 was 54.6% and the share of employees of small and medium-sized enterprises in the total number of employees in the business sector in the Czech Republic in 2017 was 58.0% (CSO)).

Descriptive statistical methods have been applied to evaluate the outcomes of the survey, namely Pearson’s chi-squared test and Cramer’s V. Where the p-value calculated using the χ2 test (Pearson chi-squared) was below the significance threshold α = 0.05, the null hypothesis was rejected as the research demonstrated statistical dependence between the qualitative variables. The strength of the dependence was determined using Cramer’s V coefficient according to categories in De Vaus (2014) [60]. De Vaus (2014) ranks the correlation coefficients for social science research as follows: 0.00 to 0.09 = trivial; 0.10 to 0.29 = low; 0.30 to 0.49 = moderate; 0.50 to 0.69 = substantial; 0.70 to 0.79 = strong; 0.80 to 0.89 = very strong; 0.90 to 0.99 = near perfect; 1.00 = perfect; while a negative result implies a reverse correlation.

The results were also subjected to multidimensional statistics using factor analysis [61]. Factor analysis is a technique used to reduce a large number of variables into fewer numbers of factors; in this case, confirmatory factor analysis was used. Factor analysis was carried out using the Varimax method and applying the Kaiser–Guttman rule (i.e., the dispersion value of substantial factors is higher than 1) to select the substantial factors. Values higher than 0.3, considered to be the key values in social science and primarily in the HR management, were considered substantial [61]. Data were processed using IBM SPSS Statistics software.

4. Results

The following results are based on the research conducted in 549 Czech organizations. It can be summarized that the majority of contacted organizations do not apply the concept of DM (57.4%). Most organizations that practice this concept operate in the tertiary sector (158; 48.0%), and it is more likely to be applied by large organizations (71; 60.7%) than organizations with fewer employees. It can be concluded that there is greater interaction with people in the service sector, and thus there is a greater emphasis on the need for DM. Most large organizations have also established HR departments and, therefore, more widely apply new modern approaches, including DM. More detailed results are listed in Table 1 and Table 2.

Based on statistical testing, the p-value (commercial sector) is equal to 0.006 and, for this reason, the null hypothesis (H1) may be rejected. The use of DM is, therefore, dependent on the sector in which the organization operates and the strength of the dependency (Cramer’s V) is 0.136 (low dependence). In terms of the organization’s size (number of employees), DM is practiced by 34.2% of small organizations, 45.0% of medium-sized ones, and 60.7% of large organizations. Based on the statistical testing, the p-value is 0.000; therefore, the null hypothesis (H2) may be rejected. The use of DM is dependent on the size of the organization, and the strength of the dependency is 0.210 (low dependence).

In Czech organizations, diversity is primarily exhibited in the ratios of women and men. There are more male employees in 46.6% of organizations, an equal ratio (50% women and 50% men) in 24.4%, and a majority of women in the remaining 29%. According to the business sector, women only predominate in the tertiary sector (38.6%). Conversely, men predominate in primary (64.2%) and secondary sectors (73.0%), which is in line with the aforementioned theoretical assumptions.

Another frequent phenomenon of DM is the number of those identified with disabilities. Of all the organizations surveyed, only 39.3% employ those with disabilities. Employing those with disabilities not only offers employers a range of financial benefits, including tax advantages and contributions by the labor office for the creation and operation of jobs for the disabled, but it also means acquiring motivated and loyal employees, and improving the social atmosphere within the company. Employers of those with disabilities may reap benefits and better fees in public tenders and are often perceived as socially responsible businesses.

Diversity achieved through the employment of foreigners, which is important primarily in western European Union countries, is not so significant based on the results of the analysis in the Czech Republic. According to the results, 93.8% of organizations have mostly Czech employees, 4.0% have equal numbers of foreigners and Czechs, and only 2.2% have higher numbers of foreign employees. Given the influence of the currently rapidly growing migration of people to Europe, it is highly likely that this situation will change in the near future.

Among the provable facts manifested through the application of DM in organizations, the respondents most frequently identified retention of key employees (43.9%), improved motivation and performance of the existing employees (39.3%), and improvement of the actual atmosphere in the workplace (33.9%). More detailed results of the benefits resulting from applying DM in the organization are outlined in Table 3.

Additionally, a dependency was determined between the sector and risks influencing the application of DM, including financial risk, human risk, and a lack of qualified people to oversee the application of DM, organizational risk and the established organizational culture, company management risk, and knowledge of DM (Table 4).

It is evident from the data in Table 4 that the contacted organizations view the adoption of DM by company management, thus, its strategic enforcement as the greatest risk of its application, which was reported by 80.3% of organizations. However, the contacted organizations also express concern about the financial risk (70.1%) and the incongruity of the approach with the organizational structure (67.0%). The organizations view the lack of human resources, which would be able to implement this approach, as the lowest risk, but this is still 56.5% of organizations.

As part of the analysis, a dependency was also tested between the application of DM and a sufficient amount of information about the issues in question. In terms of knowledge of DM, a total of 20.2% of the organizations reported having all the information, 72.1% of them only partial information, and 7.7% no information. While one-tenth of organizations operating in the tertiary sector lack even the basic information on DM, in the primary sector, it was only one of the organizations contacted.

Based on statistical testing, the following p-values were found: 0.845 (financial risk), 0.483 (human risk), 0.090 (organisational risk), 0.101 (company management risk), and 0.181 (knowledge of DM). All calculated p-values were above the significance threshold α = 0.05, and, thus, the null hypotheses (H3–H7) cannot be rejected. There is no statistical dependency between the aforementioned risks and the application of DM in the individual sectors.

The analysis has also indicated that primarily organizations in the tertiary sector (65.8%) that applied DM had all the information about DM, whereas 22.7% of small organizations that applied DM nonetheless also indicated that they lacked information about an everyday experience with matters relating to DM.

In comparison, based on the results of the quantitative analysis conducted, which was also supported by the qualitative analysis in all commercial sectors (n = 10), it may be stated that company management in commercial sectors sees disadvantages in the lack of sufficiently qualified employees to manage the issues in question at the organization level. There is, thus, a need to train HR department employees and/or line managers who are responsible for the functioning of individual working teams in which diversity factors appear. To support diversity in working teams, the concept must also be shared with the employees themselves and a corresponding company culture must be established.

As mentioned, the application of DM is influenced by many factors at the organizational level. Factor analysis was performed to evaluate the factors most affecting DM; the calculated values express the extent to which the newly created variable correlates with each other original variable. Based on the evaluation of the computed data, two significant factors meeting the set criteria according to the methodology were found in the evaluation of the questionnaire. Table 5 depicts the individual variables examined by percentage and their total sum.

Factor analysis has identified two significant factors combining the analyzed variables. The first factor has a strength of approximately 34%, the second 13%. Overall, the two identified variables explain 46.887% of the sample behavior or the resulting properties. According to the methodological procedure [61], two significant factors were identified (their total variance is higher than 1), other factors had a total variance lower than 1, so they are considered as not significant. The factor analysis results of the questionnaire survey are presented in Table 6.

The factor analysis in the area of approach to DM application was performed within the whole sample of respondents (organizations), regardless of the size or commercial sector of the organization. However, given the long-term research in this area, it can be concluded that the HR strategy approach is applied primarily by large organizations that have established HR departments. The organizational culture factor is more suitable for small and middle-sized organizations that do not have clearly defined procedures formulated in their HR strategy.

Given the variables examined, they can be briefly characterized as follows:

The variable referred to as “knowledge of diversity management” involves responsible employee decision-making in the recruiting and retention of employees, as they are aware of the problems associated with the future of the labor market (e.g., employee aging, early retirement, lack of young workers).
A friendly attitude towards diversity: the management of the organization and executives adopt a positive attitude towards diverse teams and their knowledge. This knowledge is also utilized.
Good management that understands individuality and diversity; a quality and functional diversity strategy in the organization: the management of the organization sees it as their responsibility to approach employees of all ages, gender, nationality, etc.
Good working ability, motivation, and willingness to continue working within and with diverse work teams.
High level of competence: the management of an organization is fully aware of the concept of shared competences and learning within diverse teams. The concept is contained in important organizational decisions. Management also takes care that the experiences of employees are shared.
Good work organization and a working environment that supports diversity, such as work organization, working hours, and work environments, both physically and socially, which meet the needs of employees of different genders, ages, nationalities, etc.
Satisfied life-recognition, wellbeing, and quality of life for all employees and a willingness to help in the team.

The first factor demonstrates the importance of setting the right HR strategy. These organizations emphasize the creation of a suitable environment that supports the application of DM and generates positive feedback from employees. Organizations place emphasis on education in the field, managers are well-informed about and interested in the issue (0.596), an emphasis is placed on employee development regardless of gender, age, nationality, or other diversity elements (0.503), career plans are created for all employees (0.605) and a diversity strategy is created (0.737). The variables of the found factor range from 0.503 to 0.737, which represents a relatively high quality of the coefficients detected. The first factor may be referred to as the “HR strategy” supported by the organization’s formulated strategic objectives, as it groups the most important factors that the organization or management must support.

The second factor, referred to as “organizational culture” includes four variables directly influenced by individual employees of the organization. The organization of work, the use of flexible working modes (0.734), which promote employee satisfaction and reduce turnover (0.798), have a high coefficient, stimulate and increase motivation in diverse teams (0.664), and increase co-operation. Applying DM, in general, helps improve a company’s prestige not only in the eyes of employees, but also in the eyes of customers, suppliers, etc., and helps build the employer’s brand.

5. Discussion

The research indicates that DM may be considered an important trend in organization management at present, and, as confirmed by the analysis carried out in Czech companies, its application depends on the commercial sector and the size of the organization [62,63]. The results show that DM is a tool of sustainability for the organization in its work with all its employees. As part of the analysis of the application of DM in individual commercial sectors in the Czech Republic, seven null hypotheses were established for the methodology of this study and dependencies were tested between the selected qualitative indicators.

Based on these statistical results, the following can be summarized:

The application of DM is dependent on the commercial sector in which the organization operates.
The application of DM is dependent on the size of the organization.
The application of DM is not influenced by the financial risk of the organization.
The application of DM is not influenced by human risk (lack of qualified personnel).
The application of DM is not influenced by the established organizational structure.
The application of DM is not influenced by the company management.
The application of DM is not dependent on a sufficient amount of information on the issues in question.

The external dimension of diversity has been gaining traction as part of teams in individual organizations across the individual sectors of the economy [64]. It is ever more important in the present highly competitive environment to take advantage of knowledge transfer across various fields and commercial sectors, and, thereby, create a skilled team of experts [3,4,9,65]. However, this cannot be achieved without comprehension and implementation of targeted DM for external dimensions (see the factors studied) and also at the organizational level (methods of career management in organizations, union memberships and other collectives, etc.).

Based on the results it can be stated that diversity in Czech companies, which particularly involves employing women, foreigners, and those with disabilities (the external dimension of DM), is manifested most clearly in the tertiary sector through services, healthcare, and social care, followed by the primary (agriculture) and secondary sectors. As highlighted by Pořízková [34], today, construction cannot function without employing foreigners [8,10].

Studies on DM have described the motives and expectations of foreign workers [36,40], including the opportunity for personal and professional development, the search for better working conditions, or (particularly in the case of women) improvement of their family situation in their native country [46]. In the case of those with disabilities, the primary motivation is their incorporation into society, social recognition, and the development of their own talents. One of the routes to supporting personal professional development (or talent development) of individual employees or working teams is continuing education. Enabling continuing education customized to the needs of particular employees or working teams is one of the ways an organization can obtain qualified, motivated, and loyal employees [66].

The research also highlights poor working conditions for foreign workers, such as low wages, physical demands, discrimination, and management behavior [66]. For this reason, it is critical to react to these tendencies at the organizational level. The authors Timonen and Doyle [44] warn of significant racial and cultural tensions visible in vertical and, especially, horizontal relationships in the workplace. Training of line managers and specialists from human resources departments is, therefore, critical for development in this area. In practice, the term vulnerable workers is often used. This term refers to ethnic minorities, older or female workers, migrant, unskilled, or long-term unemployed and disabled individuals who face unequal conditions in the labor market [67,68,69,70]. The main mission of DM is to ensure comparable working conditions for all employees, which is a challenge for all organizations that wish to gain a sustainable competitive advantage [71].

The contacted commercial sector organizations that currently apply DM seek to create personnel policies and activities in the field of human resources management, through which they can improve the quality of the working environment while also seeking to broaden employee knowledge and experience. The analysis conducted indicates that organizations understand the importance and benefits of DM and rank retention of key employees (43.9%), improved motivation and performance of existing employees (39.3%), and improvement of the actual atmosphere in the workplace (33.9%) among the main benefits. Hence, based on the results, the following recommendations can be given to organizations in the Czech Republic and their HR departments (see Table 7):

However, the highest priority must be given to the adaptation of organizational culture to this phenomenon, which is rapidly reaching the foreground of organization interests across commercial sectors. At present, respecting diversity, both personal and cultural, is an important condition for the effective performance of individuals and teams and for improving the results of the organization as a whole.

6. Conclusions

Diversity management (DM) is an important area of strategic management that enables organizations to identify differences between employees with the objective of obtaining skilled workers for the organization regardless of age, gender, race, etc., to build a knowledge base and to continually prosper through the use of a synergistic effect. As part of this study, it was determined that a total of 42.6% of the contacted organizations (n = 549) apply the concept of DM. The results indicate that there is a statistical dependence between the application of DM and the commercial sector in which the organization operates (p-value = 0.006; Cramer’s V = 0.136) and the size of the organization (p-value = 0.000; Cramer’s V = 0.210). This represents the majority of large organizations and organizations operating in the tertiary sector. Only 20.2% of organizations, however, have sufficient information about DM.

The theoretical benefit of this article is to introduce the application of DM in individual commercial sectors, including the identification of its benefits and deficiencies. The practical benefit of this article is to present the results of the research currently underway in Czech companies, as this represents an ever more pertinent and crucial area of strategic management. Future research will focus on identifying organizational factors of diversity, placing an emphasis on factors influencing career management. The results may be used not only for specific fields, such as agriculture, in appealing to young, qualified workers, but also for improving the effectiveness of multicultural teams in other commercial sectors.

Author Contributions

Conceptualization, methodology, validation, and formal analysis, writing—original draft preparation H.U. and A.F.; writing—review and editing, H.U., A.F., M.H.; supervision, M.H.; project administration, M.H.; funding acquisition, M.H. All authors have read and agreed to the published version of the manuscript.

Funding

The paper was financed by a grant from the Faculty of Economics and Management, Slovak University of Agriculture in Nitra.

Conflicts of Interest

The authors declare no conflict of interest. The funders had no role in the design of the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript, or in the decision to publish the results.