Diversity%20Mgt%20Defined

1
Diversity Mgt Time for a new approach Ivancevich
Gilbert, 2000

• Diversity Mgt Defined
• Prevalence and Effects of Diversity Mgt
• Issues in Research on Diversity Mgt

2
Definitions of Diversity Mgt

• Using demographic necessity as a business case
• Assumes access will lead to advancement
• Focuses on visible minority and females
• Broad defn is to recruit, hire, retain, reward
  promote a heterogeneous (vms, females, disabled,
  gays?, whites) workforce
• Moral/Ideology based business cases will not
  survive in times of economic hardship

3
Does Diversity Mgt have an effect?

• Perceived effect vs. Real Effects vs Claims made
  by popular books

4
Perceived effects of Diversity Mgt

• 92 believed diversity mgt policies affected
  profitability Towers Perrin 92
• Perceived success of diversity training predicted
  by Rynes Rosen, 95
• Top mgt support for diversity, mandatory
  attendance, long-term eval of training results,
  rewards to mgrs for increasing diversity,
  inclusionary defn of diversity

Not in article
5
Prevalence of Diversity Mgt

• Among top 50 companies, 72 had diversity progs
  AT Kearney, 1995
• 8 were developing progs, 8 had scattered progs
  
• Predictors of the use of diversity training
• Top mgt support for diversity, Top mgts positive
  beliefs about diversity, high strategic priority
  to diversity compared to other objectives,
  presence of diversity mgt officer, other
  diversity supportive policies Org size Rynes
  Rosen, 95

Not in article
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Prevalence of Diversity Mgt

• Case examples
• Xerox
• IBM
• 16 organizations case study Morrison, 92
• 13 emphasized recruitment
• 12 used diversity related criteria for perf
  evaluation
• 6 linked accomplishment of diversity goals to
  special bonuses or merit pay increases (cf
  Stephan Stephan)
• 11 had most admired corporation ranking in
  Fortune
• 3 had awards for TQM

7
Effects of Diversity Training

• Increased perceptions about managerial concern
  for diversity Ellis Sonnenfeld
• Decreased perceptions that vms received too much
  attention Ellis Sonnenfeld

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Effects of Diversity Mgt

• Improved org culture, fairer treatment of VMs
  women in large corporation Jew 1995
• Increased understanding of diverse customers,
  increased creativity, increased commitment,
  better retention attendance in 55 companies in
  CA Tsui Porter

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Effects of Diversity Mgt

• Increased cooperation in ethnically diverse
  groups Cox et al
• VMs have more positive perceptions of career
  advancement programs (Intl Survey Research
  Company)
• Identity-conscious HR structures (i.e.,
  recruitment, hiring goals, promotion vs.
  termination ratios, grievance rates) were
  positively associated with positive employment
  status outcomes for vms women Konrad Linehan

10
Effects of Diversity Management (Wright et al)

• Stock price changes were
• NEGATIVE after firms publicly announced
  settlements in discrimination lawsuits
• POSITIVE for those firms winning awards for Equal
  employment opportunity

11
Effects of Diversity Mgt

• Those Fortune 500 firms with the best record of
  promoting women to senior positions were more
  profitable (ROA 18 ROI 69 higher than the
  median in industry) Adler
• Firms with 2 or more women on boards were more
  likely to be industry leaders in revenues
  profits 6 yrs later Conference Board

Not in article
12
Effects of Diversity Mgt

• Companies with the highest representation of
  women in top mgt teams had better financial
  performance (ROE 35.1 TRS 34 higher) than
  those with the lowest representation Catalyst

Not in article
13
Issues in Research on Diversity Mgt

• Cf Issues in Diversity Training (Stephan
  Stephan)
• Demographic vs. Attitudinal defn of diversity
• 1. Over time, effect of demographic diversity
  weakened whereas that of attitudinal diversity
  strengthened Harrison et al
• Inter-group interactions became less
  stereotypical as members learned about one another

2.
Carpenter Radhakrishnan
Perceptions of groups features
Ethnicity
Collectivism
Not in article
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Issues in Research on Diversity Mgt

• Lack of research could be due to
• fewer number of researchers in the area
• Poor quality research
• Bias of reviewers editors
• Encouragement of doctoral students
• Gaining access to organizations

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Issues in Research on Diversity Mgt

• Better research based on
• Improved research designs,
• Better theories
• More diverse samples
• Time-based studies
• Better statistical analyses (Radhakrishnan, in
  progress)

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Issues in Research on Diversity Mgt

• Better Diversity training research (cf Stephan
  Stephan chp)
• Identify important program based criteria
• Assess changes in criteria
• Determine whether changes in criteria
• Are due to diversity training
• Will replicate with diff employees of same firm
• Will replicate with different firm
  (generalization)
• Assess Affective, cognitive, skill based outcomes
• Use utility estimation procedures to estimate
  economic benefits

17
Diversity Mgt Time for a new approach Ivancevich
Gilbert, 2000

• Diversity Mgt Defined
• Prevalence and Effects of Diversity Mgt
• Issues in Research on Diversity Mgt