OS 352 12908

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OS 352 1/29/08

• I. Strategic responses to employment laws
• II. Managing workforce diversity
• III. Discussion Segal article

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Strategic Responses to Employment Laws

• Symbolic compliance
• Compliance
• Competitive advantage

3
Diversity

• Although definitions vary, diversity simply
  refers to human characteristics that make people
  different from one another
• Individual characteristics over which a person
  has little or no control include biologically
  determined characteristics such as race, sex,
  sexual orientation, age, and certain physical
  attributes, as well as the family and society
  into which he or she is born.

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Included in the Diversity Definition

• Broad
• Sex
• Race
• Ethnicity
• Age
• Abilities
• Sexual orientation / Transgender
• Caregiving / Parental status
• Religion
• Values
• Class background
• Marital status

• Narrow
• Sex
• Race
• Ethnicity

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Diversity Management

• Anti-discrimination compliance, efforts at
  inclusion, and the impact on the bottom line
  (Lockwood, 2005, SHRM report).

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IBM on Diversity Randy McDonald, Senior VP
HR(http//www-306.ibm.com/employment/us/diverse/5
0/rm.shtml, Sept. 2005 )

• The success of our business hinges on the
  marketplace. We know our customer base is
  diverse. We also know that people are more
  inclined to do business with us if they see
  others like them in our organization. Going
  forward, the link between a diverse workforce and
  marketplace success is only increasing. Inside
  and outside the U.S., more IT buyers come from
  diverse ethnicities and backgrounds and represent
  more heterogeneous customer bases.
• Beyond that, being a leader in diversity
  underscores our commitment to an inclusive work
  environment where ideas and contributions are
  welcome, regardless of where you're from, how you
  look or what personal beliefs you hold. Our
  managers must leverage IBM's diversity and
  work/life balance programs to create a climate
  that lets every employee know that their
  opportunity at IBM is gated only by their
  performance. For employees, their intellectual
  contribution and diverse backgrounds are key to
  IBM's leadership. When both these perspectives
  are combined, we build a sense of community, and
  we have a workplace where everyone feels like a
  stakeholder.

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Owens Corning on Diversity Dave Brown, President
and CEO(http//www.owenscorning.com/acquainted/di
versity/, Sept. 2005)

• Diversity at Owens Corning is about
  inclusiveness, mutual respect and doing what is
  right. It is about becoming a stronger team by
  leveraging the power of our individual
  differences. It is about the type of company we
  want Owens Corning to be. To realize the power
  that is possible through diversity, we
  continually strive to build a workforce and
  supplier network that reflects the diversity of
  the markets, communities and customers we serve."
  

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Workforce Diversity Management

• Includes policies and procedures that support
  the view that all employees views and cultures
  are to be valued and respected.
• Cross-cultural training sensitivity training
• Team training
• Work/life programs (e.g., elder care)
• Top management commitment to diversity
• Equal employment opportunity efforts
• Diversity scorecards
• External diversity advisory panel

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Generate 2 Measures for each of the following
Diversity Scorecard categories

• EEO Compliance
• Valuing diversity as part of the company culture
• Diversity of teams
• Diversity-related grievances / issues

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What is a Measure?

• Instrument to obtain scores on individual
  opinions or perceptions, or organization
  performance.
• Should be a number or a percent or a frequency ?
  statistic
• Should be specific
• Better percent of high performers leaving the
  firm annually.
• Too general turnover.

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Barriers to Successful Diversity Management

• How to ensure that diversity initiatives foster
  inclusiveness and productivity rather than the
  opposite?
• Barriers to success
• Poorly developed management rationale for
  promoting diversity
• Individual prejudices and defensiveness
• Lack of individual awareness / subtle biases
• Poorly designed training or an unqualified
  trainer
• Lack of management follow-up and reinforcement
  regarding diversity

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Workforce Diversity Management What is Most
Effective?

• A study by Kalev, Dobbin, Kelly (2006) of 708
  establishments over 30 years found that
• Diversity training aimed at reducing subtle
  biases was the least effective approach to
  increasing the diversity of a firms managers
• Mentoring and networking programs were somewhat
  effective in diversifying a firms managerial
  ranks
• Establishing responsibility for diversity
  outcomes was the most effective approach to
  increasing the diversity of a firms managers
• Affirmative action
• Diversity committees
• Diversity staff

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Earnings Differences Between Women and Men
(Elvira Graham, 2002)
Formality

• Total Compensation 7 high
• Base Pay 6 high
• Bonus 26 low