Managing Employee Diversity

October 22, 2007

DiversityIt describes a wide spectrum differences between people.Groups of individuals share characteristics that distinguish them from other groups.The differences between groups are smaller than the differences within groups.Classifying people into group types often leads to false stereotypes because it incorrectly assumes that group averages apply to all individuals in the group.

Diversity in the organization

A powerful competitive edge

The ability to foster creativity

Improve problem solving

Provide greater flexibility

Make the firm more attractive to a broad labor market

The Faces of Diversity

Advantages

Better market access

Better Team Performance

Improved International Competition

Multiple points of view

Disadvantages

Pressure towards homogenization

Lower cohesiveness

Confusing diversity with Affirmative Action

Interpersonal Conflict and Tension

The U.S. workforce : a mosaic of diverse cultures and groups

African Americans

11.3 % population11.8 % workforce

Asian Americans

3.6 % populationWide variety of races ethnic groups and nationalities

Disabled Americans50 million Americans55.8% are employedAccommodating disabled employees is less expensiveForeign-Born

AmericansAbout 10 percent of U.S. populationAbout 820,000 immigrants enter the U.S. legally every year

Hispanic AmericansAbout 28 million people (10 percent of U.S. population)Actual number is around 40 million people

Homosexuals:Estimated to be between 1 to 10 percent of the populationNo federal laws to protect

Older WorkersThe average age of the U.S. workforce is expected to reach 42 by 2010.Negative stereotypes: inflexible, resisting to learning new skills, and coasting until retirementWomen

Half of the labor force is femaleGlass ceiling and sexual harassment issues

Building on DiversityManagement Commitment:

Top management commitment

Linking diversity initiatives to business strategies and objectives

Management responsibility and accountability

Diversity audits

Developmental activities

Encouraging diversity networks

Accommodating family needs

Top Management Commitment

Question to improve diversity:

How can we develop all employees so that they are ready for opportunities that arise in the company?How can we be sure that minorities and women gain access to better jobs, as they become available?How can we make sure that we give minorities and women opportunities without discriminating against white men?How can we show all employees that we value their contributions?How can we change attitudes of both employees and customers?Will the same approach work for new employees and those with many years of service?

Linking Diversity to Strategies and Objectives

Should be key components of corporate mission statements

Inclusion in corporate handbooks

Examples:

Diversity briefing for senior management

Networking groups

Linking diversity performance to other corporate objectives

Benchmarking with other companies

Management Responsibility and Accountability

“Diversity is not likely to become part of management and employee priorities without

real accountability for specific objectives.”

360-degree feedback – multirater feedback from peers, suppliers, other levels of management, and internal and external customers

Employee surveys

Performance appraisals

Self-evaluation

Diversity Audits

Can help reveal possible sources of bias

Indicators or factors used in the audit can also be used to measure whether corrective actions have the desired effects

Developmental Activities

Diversity TrainingDiversity is about each person coming to terms with attitudes, beliefs, and expectationsIt is big enough to include everyoneNo is the target to blameHuman beings are ethnocentricThe human species resists changeHuman beings find comfort and trust in likenessIt is difficult for people to share power

Senior MentoringDiversity Learning LabsApprenticeships

Encouraging diversity networks

Offers a nurturing environment to people

Company leaders may encourage employees to become part of international teams

Accommodating Family Needs

Day-care assistanceFlexible work schedules Compressed work weeksJob sharingTelecommutingCare assistance for elderly dependentsPaid time off to care for family members who are illPaid parental leaveKeeping relocations to a minimumGiving a high priority to finding a position for spouse within the firmJob search assistance to relocated spouses