Marathon Oil Company Actively Manages Diversity

Marathon Oil Company (MOC) is a large US integrated oil firm where diversity is an
important element of its business strategy and is integrated into every facet of its human
resource planning. Although an integrated company marathon’s refining and marketing
activities are operated through an affiliate, Marathon Ashland Petroleum (MAP), a
venture with Ashland in which Marathon has a 62% interest. MOC and its affiliate, MAP
both has been successful at driving diversity synergies by linking and insuring
consistency in their approaches to formulating diversity business cases and strategies,
plus implementing common diversity initiatives. While aligned, each company has
autonomy in implementation of diversity programs.
The presidents of each of these affiliated companies, Gray Heminger (MAP) and
Clarence Cazalot (MOC), have committed resources (time, Money, and people) to insure
that diversity drives business success. The head of each diversity organization partners
with the respective senior leadership diversity best practices, identify natural synergies
between the two companies, and troubleshoot common challenges.
During the last two years, both companies have committed to an inclusive diversity
strategy and many corporatewide diversity initiatives, including (1) customized diversity
business case for their respective business; (2) diversity training for over 10,000
employees; (3) mentoring program; and (4) multicultural recruiting. Each company
tailored these four initiatives to address their business needs and the unique culture of
their organization.
An example of the company’s approach to diversity can be seen through a closer look at
its refining and tailoring business. Marathon Ashland Petroleum’s successful
implementation of several diversity initiatives demonstrates how focused leadership
commitment, a diversity strategy that complements business objectives, and a practical
plan creates significant results in a short period of time. In fact, diversity is one of MAP’s
five core values, which are diversity, ethics, environmental stewardship, safety, and
premier employer, for which its senior leadership and employees are held accountable.

Minority Recruiting
Faye Gerard’s (MAP’s diversity manager) positive professional experiences as and
African-American female chemical engineer, intensifies her commitment to achieve
MAP’s goal to increase representation of minorities and women in technical positions.
The declining number of minorities, particularly minority women, and the increased
competition for technical talent makes this a daunting task. MAP’s senior executives,
partnering with Faye, have created a six component recruiting strategy that focuses on (1)
corporatewide, cross-functional recruiting; (2) relationship-based recruiting with first-
and second-tired schools; (3) internship; (4) scholarship; (5) informal mentoring; and (6)
organizational affiliations.

Diversity Awareness Training

The senior leadership felt it was important for each employee to understand diversity’s
relationship to MAP’s business strategies, corporate success and expectations for their
behavior. Therefore, MAP required its 6,000 employees to attend diversity training.
Managers and supervisors attended an eight-hour in-class session; nonmanagement spent
four hours at in-class session training, and the hourly work-force had computer-based
diversity training. In less than 1.5 years, 95% of MAP’s workforce has been trained.

Mentoring
Over the last year, MAP has implemented Knowledge Enhancement Exchange Program,
(KEEP) a mentoring program that targets all employees. Its objectives is to increase
retention and contributions to the business, expand individual knowledge bases, and
further instill MAP’s five core values by driving supportive work relationships. There are
two target populations: new hires are paired with senior, more experienced employees.
Informal and formal feedbacks (employee surveys) have indicated that KEEP has been
extremely effective.

Phase II Diversity at MAP

MAP is now in the design and implementation of its Phase II diversity initiative. This
Phase focuses on (1) increasing diversity skills and tools for managers and supervisors;
(2) work-life balance; (3) accelerated join-up for new hires; and (4) on-going senior
executive leadership for diversity.

Case Summary
We have embraced diversity to foster the creativity of thought and innovative solutions
that result in enhanced business opportunity.
Clarence P. Cazalot Jr.
President and Chief Executive Officer
At Marathon, diversity is a core value in their business strategy. they are committed to
maintaining an inclusive environment in which all employees are respected and valued
for the full range of talents, experiences, thoughts and opinions they bring to the
workplace.
Leveraging the diversity of their workforce and their Supplier Diversity Program enables
them to build relationships and business partnerships that ensure their goal for sustainable
value growth.
• Marathon’s minority recruiting program is also very efficient in developing
diversity.
• Marathon diversity councils help drive Marathon’s global diversity initiatives.
These are advisory bodies comprised of a representative cross-section of the
Corporation's employees.
• Marathon’s diversity educations programs help raise the level of awareness of
Marathon’s employees.
• Marathon’s global mentoring programs help employees grow in their current jobs
and develop future career opportunities.
Questions for Discussion
1. Which layers of diversity is Marathon Oil targeting in its recruiting and
mentoring initiatives?

Functional Level/
Classification

Geographic Location

Marital Status
Mgmt. Status Income Work Content/
Age Field

Parental Status
Race Personal Habits
Person
ality Recreational Habits
Appearance
Sexual Orientation Division/ Dept./
Ethnicity
Union Affiliation Unit/ Group

Physical Ability
Work Experience Religion

Educational
Background
Work Location Seniority

There are four layers of diversity, (1) personality, dependant upon coming three
dimensions or layers of diversity, (2) Internal Dimension, consist of age, race
ethnicity, Physical Ability, and sexual orientation, (3) External Dimension, consists of
Income, Religion, Work Experience, appearance, parental status, marital status etc,
(4) Organizational dimension, the last one consist of Management status, union
affiliation, work location, seniority, field, functional level or classification.
MAP is targeting the internal and external dimensions/layers of diversity. For
example they are recruiting irrespective of race, age, ethnicity, Physical Ability, and
sexual orientation. Means recruiting women on technical positions and giving
minority preferences and making them trained. If you come at the mentoring program
of the MAP they are pairing the newly hired employees with most experienced and
senior employees of the organization.

2. Compare and contrast the extent to which Marathon is using principles from
affirmative action, valuing diversity, and managing diversity. Explain your
rationale.
Affirmative action is an artificial intervention aimed at giving management a chance
to correct an imbalance, an injustice, a mistake, or outright discrimination. MAP has
used affirmative action somewhere in minority recruiting program and giving chance
to the woman to take part in technical position in an organization like MAP. MAP did
not do things like include/exclude instead they gave value to diversity.
Valuing diversity emphasizes the awareness, recognition, understanding, and
appreciation of human differences. As MAP has giving chances to the minority and
woman by employing them as MAP and gave them value and absorb them in the
organization. The diversity awareness program of MAP is step to give value to
diversity.
Managing diversity entails enabling people to perform up to their maximum potential.
MAP has managed diversity through programs like mentoring which entails newly
hired employees with most senior employees in the organization.

3. Which of R Roosevelt Thomas, Jr’s eight generic diversity options is

Marathon Oil using to manage diversity? Explain.

Thomas identified eight basic responses for handling any diversity issue.
Option 1: Include/Exclude
Option 2: Deny
Option 3: Assimilate
Option 4: Suppress
Option 5: Isolate
Option 6: Tolerate
Option 7: Build Relationships
Option 8: Foster Mutual Adaptation

Exclusion, denial, assimilation, suppression, isolation, and toleration are among

the least preferred options. MAP is not following these options. While options like
inclusion, building relationship, and mutual adaptation are preferred options for
MAP to follow.

4. Using Table for Common Diversity Practices as a point of reference, identify

the various accountability, development, and recruitment practices used by
Marathon Oil.
These are the accountability, development, and recruitment practices used by
MAP
• Accountability practices
• Inclusion of diversity in performance evaluation goals, ratings.
• Inclusion of diversity in promotion decisions, criteria.
• Inclusion of diversity in management succession planning.
• Policies against racism, sexism.
• Development practices
• Diversity training programs
• Informal networking activities
• Formal mentoring program.
• Internal training(such as personal sagety or language)
• Recruitment practices
• Corporate image as liberal, progressive, or benevolent.
• Partnerships with educational institutions.
• Recruitment incentives such as cash supplements.

• Internships.

• Targeted recruitment of managers.

Table for common diversity practices