The Importance Of Equity In Human Resource Management


The objective of this research proposal is to identify the importance of equity in business management by examining the key issues regarding diversity. This proposal will explore the topic of diversity that goes beyond just race. Have you ever thought about when you opened a company abroad you need to pay attention to the most? Through my remarks and reviews, in addition to business management factors such as team building, customer service strategy, marketing, financial improvement, sales and prediction, discrimination is pervasive in the American culture and it affects business management in so many ways. We should wonder how discrimination will affect business management. We know from research that white-sounding names received 50 percent more callbacks than their black-sounding name counterparts. By addressing the discrimination in the workplace, business can boost productivity by creating a sense of belonging, worker loyalty, and cohesiveness. In addition, the rise of larger corporations also contributed to the inevitable discriminating categorizing system. Employees are being hired through online application and phone interview; therefore, it is difficult to avoid biases between the future employers and potential employees. So, what is the solution if we want to manage business better and choose employers in fairness?

In order to address the equity in human resource management, it is also necessary to examine how diversity is measured. The criteria do not only include race and gender, but also culture, educational level, physical ability, age, religion, sexual orientation, ethnicity, and etc… This proposal will address the research question, what is the significance of equity in human resource management.

Relevance and Literature Review

Globalization has changed the job market and how companies are operated dramatically. Within the proposal, it will broaden our understanding on the relationship between human resource management and employment process, performance appraisal, and social network.

As career is being transformed from a single employer for life into multiple employers shows a great relatability to economic opportunity and class mobility. Now, it is important to have a wide social network in almost all aspects of life to enhance one’s marketability and social status. Having friends and family who knows someone that might you a job is extremely helpful. This social network works on the trust system that allows employers to make judgments about future employees in a faster manner. This social network in the business world represents the social capital that enables one to effectively navigate within a certain environment or institution. This provides the future employees with the mentorship and coaching that might enhances their chance of getting a particular job. The relationships that one can literally turn into money if they know how to use them wisely. If it is your dream to become a doctor, then it might be useful to know a doctor from your friends and family connection, who could help you go through the process and might give you a great recommendation to their current company. Their chance of being successful is also higher because the obstacles are answered for since they already have some mentorship in their pockets.

However, relating this back to this proposal topic regarding equity within the human resource management, it is important to note that not everyone possesses the equal amount of social capital. In an article “Socioeconomic Correlations and Stratification in Social-Communication Networks” by Yannick Leo and Marton Karsai. Three of them are research directors at Grandata, assistant professor of computer science, and Doctor of Science at Baylor University. Leo et al.(2016) say “Socioeconomic imbalances, which universally characterize all modern societies, are partially induced by the uneven distribution of economic power between individuals.” Some managers think that they are afraid that there will be people better than them, which causes a company to have no competitive element in their work and move forward. This drastically affects one’s chance of employment and job security. Minority population and those in the lower socioeconomic class have smaller social network. For example, people who live in the same neighborhood have a same class and have similar educational, work, income, and cultural levels. This is a barrier of success that prevents social mobility. On the other hand, I think discrimination in recruitment is also related to immigrants. In an article that I studied “The Psychology of Social Class: How Socioeconomic Status Impacts Thought, Feelings, and Behaviour” Antony S. R. Manstead (2018) argues “The widely held view that working‐class individuals are more prejudiced towards immigrants and ethnic minorities is shown to be a function of economic threat, in that highly educated people also express prejudice towards these groups when the latter are described as highly educated and therefore pose an economic threat.” This article tells us that some employers will mostly recruit their people instead of hiring immigrants and foreigners. This is the weakest discrimination in business recruiting. It will affect the quality and evaluation of a company.

On the other hand, color races also affect discrimination equally. In the article, “You’re Talked To As If You Are A Junior’ Employees On Workplace Racism” by Reni Eddo – Lodge (2017, September 26) says, “Applicants with white, British-sounding names were far more likely to be called to interview for a position than their ethnic minority counterparts.” This says that they recruit based on race rather than relying on strength. In the other article, “Discrimination in the Job Market in the United States” by Marianne Bertrand,the Chris P. Dialynas Professor of Economics at the University of Chicago Booth School of Business, and Sendhil Mullainathan, an American Professor of Computation and Behavioral Science at the University of Chicago Booth School of Business and an author. Bertrand and Mullainathan (2004) say “Compared to white individuals, black individuals are twice as likely to be unemployed, and earn nearly 25 percent less when they are employed.” This is an example in the US and most employers will choose white Americans instead of blacks. This has been unfair to the candidates and has a poor business management at a company. In addition, other barriers to success include transportation, child care, gap in learning ability, credentials, and education. All of these barriers can be overcome with a broad social network. For example, someone with no driver license could know someone that might give them a lift to work or single parent could have a friend or family member take care of their child if they need someone to cover during work.

Performance appraisal is an important management procedure that lead to promotion and economic mobility. Unfortunately, this process is deeply flawed with discriminations. The glass ceiling mentality in extremely prevalent in this specific branch of management. It is described as the social constructed cap that limit the minority group, including gender, race, and ethnicity, from advancing in their career path. Performance appraisal is also a way for the management to limit rewards and bonuses to their employees, therefore, these biased evaluations of employees can alter future productivity and even affect a company's financial risk. This in turn lowers the workers’ satisfaction and reduces retention rate. Another factor that also attributed to the flaws in performance appraisal is the growing of larger corporation management. This put the union out of the employees’ reach in order to lower their wages and benefits. Without union, it is hard for the workers to voice their opinions against the power of performance appraisal system that is in place.

In relation to equity within the human resource management, performance appraisal can be used to discriminate and prevent a certain group to advance in their career path. In the article “How To Fix Racial Inequities In The Workplace” from Forbes website, an American Business magazine, the articles are about finance, industry, investing, and marketing topics. Study has shown that the supervisor race, employee sex, and supervisor sex also account for 4.8% chance of performance appraisal. Because of the different standards, low expectations, and stereotyping, there is a considerable discrepancy in performance appraisal between white employer and minority employees. It is important to notice that performance appraisal is a part of a system that can be used against diversity and economic mobility of every employee. Every employee should feel safe and supported by their employers. This will boost the institution’s productivity and retention rate. Therefore, more research on what we know about the impact of performance appraisal on employees’ future performance and its diversity implication will help the company to make amends or come up with an entire new evaluating system for employees (Forbes 2017).

Employment process is the first step and the key role in establishing a diverse and equitable workplace for all employees. However, having too strict, specific, and unrealistic employer requirement can hinder the equity in the hiring process. It is very common to see years of experience in an entry level job posting, which is absurd because it is impossible to have any prior work experience if someone is fresh out of the training program. The employment process should be holistic and be free of bias. It’d be a help to develop a system that have a place for every individual. For example, a company can have a hiring panel that have people of all different backgrounds in the hiring process to ensure equitable outcomes. Hiring process should also take a look at the term professionalism because it seems to narrow down what it means to be a good employee. It is often that potential employee has to wear “professional” attire to job interview. Although this provides a sense of uniform, it takes away a certain identity and freedom that every individual has. Attire should be expressive and flexible to encourage diversity and self-expression in the workplace.


In conclusion, employers in a free market economy care greatly about their reputation, one of which a reputation about how their employees are treated. This research proposal is significant in relation to business management because it answers many questions about the diversity within the human resource department, which is a key role in the hiring process and employees' promoting and hiring. To tackle the issue regarding equity within the workplace, it is important to first look at how employers are hiring their employees. This process can have many systemic flaws such as stereotyping and discrimination that hinder the quest for equality. Everything from the job description and standard to background consideration should be examined carefully because these components in the hiring process have the potential to limit a certain of the population from employment. Furthermore, the research proposal will also answer more questions about the relationship between social network and equitable employment. The empowerment of marginalized communities with a broader network will boost the economy by giving more people resources to training, education, and work. This is also a way to close the disparities gap within the hiring process and the workplace. Therefore, business management is not only about producing profit, but it is also about sustaining the workforce by having a diverse group of employees to promote equity, thus producing more productivity.

Works Cited

  1. Bertrand, M. and Mullainathan, S. (2004). Discrimination in the Job Market in the United States | The Abdul Latif Jameel Poverty Action Lab. [online] Available at: [Accessed 25 Jun. 2019].
  2. Eddo-Lodge, R. (2017, September 26). 'You're talked to as if you are a junior' – employees on workplace racism. Retrieved June 24, 2019, from
  3. (2017). How To Fix Racial Inequities In The Workplace. [online] Available at: [Accessed 25 Jun. 2019].
  4. Leo, Y., Fleury, E., Alvarez-Hamelin, J. I., Sarraute, C., & Karsai, M. (2016, December). Socioeconomic correlations and stratification in social-communication networks. Retrieved June 24, 2019, from
  5. Manstead, A. S. (2018, February 28). The psychology of social class: How socioeconomic status impacts thought, feelings, and behaviour - Manstead - 2018 - British Journal of Social Psychology - Wiley Online Library. Retrieved June 24, 2019, from
  6. Sharma, A. (2019). Managing diversity and equality in the workplace. [online] Taylor &Francis. Available at: [Accessed 25 Jun. 2019].
09 March 2021
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