Diversity management: towards managing capabilities

Abstract

The future prospects of SMEs (small and medium enterprises) in Germany depend on creative employees as key actors. Nevertheless, several studies investigated inequalities especially discrimination in the labor market intensifying brain drain. Social discrimination has great impact on the capabilities of people, particularly in labour. Disadvantages are exposed to a lack of opportunities with the result of a capability gap. A widely known management tool to handle diversity and prevent discrimination in organizations is called Diversity Management. This management concept offers competitive advantages but it is mostly a management tool of bigger enterprise performances. This paper will present a process of enabling and empowering management process of capabilities. It is presented by the example of the ‘Solution Cycle’ which will be called a participatory process design contributing to the lack in the classical diversity management approach.