The Role of Human Resources in Managing Diversity : Change Agent or Change Captive?

Presented by Arthur A. McCombs MA, SPHR October 29, 2008

SEMINAR OUTLINE
What is Diversity and how does it differ from traditional compliance(EEO/AAP) ?

What is the business case or rationale for implementing a Diversity Initiative in an organization ?
What are the key components and performance measures of a successful Diversity Initiative? What is the role of senior leadership in implementing a successful organizational diversity initiative?
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This Diversity Seminar.

IS
A beginning Introspective Thought Provoking An opportunity critical to Memorial`s long term success

IS NOT
A quick fix Confrontational About changing you A problem Just a fad

Diversity Seminar- Ground Rules

Everyone is entitled to their opinions, and these opinions should be expressed in an atmosphere of trust, candor and mutual respect. Listen with the head and speak from the heart. It`s okay not to know, and to admit to others that you don`t know. As we try and value Diversity, lets also Celebrate Diversity
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What is Diversity?
Diversity is the sum total of the differences which make individuals who they are, and their collective ability to contribute to the goals of an organization. Managing Diversity is a conscious choice and commitment by an organization to VALUE these differences by using diversity as a source of strength to achieve organizational goals. Please refer to the material in your training packet for some suggested definitions on Diversity
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COMING TO TERMS WITH DIVERSITY

We are deeply committed to building a diverse workforce and are confident that we can and must effectively manage diversity. We must think more broadly than race and gender. We must harness the diverse talents & perspectives of all our employees, in our efforts to meet our business goals. This includes changing the way we manage and interact s team members with people who have different styles of learning and working, and managing diversity as a key business advantage in our increasingly multicultural markets. In an evermore diverse and competitive marketplace, we cannot afford to exclude any perspectives. BankBoston Corp.
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Workforce 2000-Projections:
90% of the increase of new entrants into the U.S. labor force will be women, minorities and ethnic immigrants. Women will account for 47% of the labor force. Blacks, Hispanics, Asians and other races will account for 57% of the total labor force growth. Hispanics in 2005 were 14% of the U.S. population, and could on their present course represent 32% of the nation's population by the year 2050 The average age of the workforce will be 39.
Source: The Hudson Institute Report, "Workforce 2000"

Changes in Family Composition

The number of married couples without children at home exceeds the number of couples with children at home by 3 million. 60% of all U.S. households will have no children at home by 2010. Dual career couples comprise 58% of all married couples, representing 30.3 million couples. Single parent households make up 27% of all families, with women heading most of these households.
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California-The First State in the U.S.with No Ethnic Majority

California`s non-Hispanic white population is 46.7% of the state`s residents. The State`s Hispanic population is 32.4% Other races count for 20.9% of California`s population. California has the nation`s largest proportion of people in any large state who said they were of more than one race, 4.7%
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Affirmative Action vs. Diversity-Where Should An Organization Want to Be?

AFFIRMATIVE ACTION Driven by legal mandatesA Compliance Model Goal-Specific May achieve statistical goals without addressing attitudinal barriers. Compliance approachMay achieve short-term results, but no lasting culture change.

DIVERSITY Voluntary effort to incorporate a Diversity commitment in Strategic & Annual Operating Plans. Organization-specific Behavior Change DrivenModel Commitment to Diversity in response to changing labor market can lead to sustained culture change and long-term success. 10

The Costs of Not Managing Diversity

The Real Thing-Coca-Cola Agrees to Pay $192.5 Million,Make HR Policy Changes to settle suit (Race), 11/16/00 California Bakery Workers Awarded $120 Million on Race Bias Claims, 8/2/00 First Union Bank Corp. agreed to pay $58.5 million to 239 employees at two banks it acquired in 1992-93(settlement date, Oct., 1997)-age discrimination
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Organizational Baseline Check for Understanding Diversity:

In order for Johns Hopkins to be perceived as being more committed and sensitive to DIVERSITY, we should: STOP START.. And CONTINUE DOING

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GO FORTH AND DIVERSIFY

According to a new study by SHRM(Society for Human Resource Management) and Fortune Magazine, 52% of employers say a good diversity initiative improves relationships with clients. 79% of the respondents said it improves their corporate culture Another 77% said it improves recruitment of new employees More than half said it decreases interpersonal conflict among employees(58%), increases creativity(59%) and productivity(52%)
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Mastering Diversity Competencies Takes a Lifetime

Be well informed about external pressure points Anticipate and manage stakeholders e.g. advocacy, community, non-government organizations Influence media and marketplace via communication and community outreach to position the organization competitively Change management Diversity, inclusion and global perspective Business acumen Integrity Visionary and strategic leadership HR disciplines Recognize and address human rights issues through policy and practice

Creating a Competency Model for Diversity, The Conference Board, 2008

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How Diversity Initiatives Help an Organization Keep a Competitive Human Resources Advantage
Improves corporate Decreased interpersonal culture conflict among employees Improves employee Improves client relations morale Increases productivity Higher retention of Improves the employees organization`s bottom line Easier recruitment of employees Maximizes brand identity Decreases complaints & Increases creativity litigation Enables the organization to move into emerging markets Source: SHRM/Fortune Diversity
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What are your thoughts on Diversity?

What is the diversity profile of your organization? Does your management team reflect the cultural make up of your workforce? Does your workforce reflect the cultural makeup of your customer base? Who should be responsible for monitoring and driving diversity issues in your organization? What is the goal(s) of diversity training?
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Elements of Diversity
AGE RACE GENDER SEXUAL ORIENTATION PHYSICAL ABILITIES PARENTAL STATUS EDUCATION GEOGRAPHIC LOCATION RELIGIOUS BELIEFS MILITARY EXPERIENCE CLASS/INCOME ETHNICITY
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What are your thoughts on Diversity?

Is diversity training a passing fad created by a societal move towards political correctness, or does it have a legitimate place in your business? Can you eliminate workplace discrimination or cultural insensitivity simply by changing policies to ensure fair treatment? Is an organizational commitment to valuing diversity compatible with a commitment to merit and organizational excellence? Should diversity training attempt to change attitudes or behavior?
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Diversity-Myths vs. Realities

Diversity is about exclusivity, No its about inclusivity and maximizing everyone`s talents and contributions for organizations to gain a competitive human resource advantage. Diversity is just another fad, No, because the national and demographic workplace trends prove its here to stay. The real question is whether you can manage it as a positive rather than a negative force for change in your organization.

Diversity is just another form of EEO/AAP, No, because Diversity goes beyond compliance as an organizational commitment to excellence, by using diversity as a source of strength.
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Diversity-Myths vs. Realities

Diversity is not a problem, Its an opportunity

Diversity is the HR Departments responsibility , no its our responsibility

Diversity is about just race and gender, No, because managing diversity is much broader and pervasive than just race and gender. Diversity is only about minorities and women in the workplace, No its about recognizing the diversity of your internal(employees)and external customers to compete in a diverse market, both nationally and globally.
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Top Ten Reasons Why Organizations Need To MANAGE Diversity

When I look at a person of color,I don`t see color, I just see the person Other employees may need diversity training, but I don`t, because I don`t have any prejudices I think employing a handicapped person is fine for our organization, as long as we can find something for them to do I`m not insensitive to differences of diversity, because I treat everyone the same I treat female employees with respect and dignity, because that`s what a gentleman should do
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Top Ten Reasons Why Organizations Need To MANAGE Diversity

Women make good managers,because they are more sensitive to the needs of their employees I think recruiting minority employees to achieve diversity goals is a good thing for our company, as long as they are qualified to perform the job I think it is more difficult to get superior performance out of older workers,because they tend to be less productive with age I think class/caste differences in our organization have little, if anything to do with managing diversity. I believe that in order to lead a diverse workforce, we must first value diversity within our own leadership group
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Why Manage Diversity?

The changes in the employee market suggest most employers will need to develop their recruitment & retention strategies to achieve their organizational goals. The changes in the domestic and global market suggest that companies need to understand diversity to succeed in their business and meet their customers needs Valuing diversity creates an environment where EVERYONE is respected and valued for their contributions to the organization`s success
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Diversity vs. Merit

What managers fear is a lowering of standards. But in a diverse workforce, competence counts more than ever.

R. Thomas,Jr.,"From Affirmative Action to Afirming Diversity"

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The Right Question

The wrong question: How are we doing on race relations? The right question: Is this a workplace where `we` is everyone?

-R. Thomas, Jr."From Affirmative Action to Affirming Diversity"

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Diversity Initiative:Intervention Options

Intervention Options: External Consultant Consultant, HR, & Diversity Council Hybrid team drives program design & installation. Shared effort & ownership of diversity program. Human Resource Driven Model (internal) HR serves as an internal consultant

Consulting Component:

Consultant drives program

Benefits or Risks of this Option:

Less use of internal staff, but also less ownership when consultant leaves.

Requires some tradeoffs in priorities & workload to install program.

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Working our way into the core elements of Diversity at the University of Maryland Medical System
Organizational Dimensions

Organizational Dimensions (1999)

Training & OD initiatives All-Team Briefings Dialogue Sessions Collaborative learning External Dimensions (2000) Empowerment Choice-based change efforts

Management Status Union Affiliation Work Location Functional Level/Classification Work Content/Field Division/Department/U nit/Group Seniority Adapted from: Gardenswartz & Rowe, Diverse Teams at Work Loden, Implementing Diversity

Internal Dimensions (2001)

Diversity Council

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Designing the Diversity Council at the University of Maryland Medical System

Outcomes
Recruitment and Staffing Diversity Management
Retention, Morale and Positive Employee Relations

Customer Satisfaction Strategies

Employee Engagement - Employee Opinion Survey

Connections to the organization Values - Respect for the Individual Vision - We are a culture in which all employees feel respected, committed and use their talents to grow world class clinical programs Annual Operating Plan
Metrics Diagnostic measures Success indicators Diversity Council Charge Charge Selection criteria Membership Reporting Roles

Culture Change - Denison Culture Survey

Leadership Development

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Outcomes of the Diversity Initiative at the University of Maryland Medical System

Current results Gained executive support and sponsorship Formed the Diversity Council Conceptually defined diversity Operationally defined diversity with metrics Conducting an audit to establish baseline data Assessing the data Lessons Learned Creating safety and trust Time Coaching Holding the container

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Key Components of a Successful Diversity Initiative

Executive level commitment to partner with HR and champion this kind of change initiative is critical to its credibility and long-term success Training is a wake up call, not a panacea for institutionalizing diversity in your organization A Diversity Council can be an effective culture change agent, if structured and staffed appropriately Accountability for managing diversity is a shared responsibility, with expectations to be met Measure and celebrate the measures of your success 30

Suggested Strategies to Strengthen a Diverse Workforce

Gain senior leadership commitment Engage employees in the process Support local/community diversity groups Provide diversity training , not as the destination but as part of the journey Promote open communication and dialogue to overcome behavioral resistance, improve understanding and gain acceptance of diversity as a cultural norm
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Diversity Performance Measures: Then and Now

TRADITIONAL EEO & AAP metrics Employee attitude surveys Cultural audits Focus groups Customer surveys Management & Employee evaluations CONTEMPORARY Demographics Organizational culture Accountability Productivity/ profitability Benchmarking Programmatic measures
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Suggested Performance Criteria for Measuring Diversity

Employees perceptions of the work environment on Diversity issues as measured through EOS(Employee Opinion Survey), focus groups, exit interviews, etc. Turnover, retention and upward mobility patterns by the demographics of your workforce compared to diversity goals. Market perceptions of job applicants Customer Satisfaction Norms on Diversity issues Performance/Productivity measures
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Closing Thoughts
In a country seeking competitive advantage in a global economy, the goal of managing diversity is to develop our capacity to accept, incorporate, and empower the diverse human talents of the most diverse nation on earth. It`s our reality. We need to make it our strength

-R.Thomas, Jr."From Affirmative Action to Affirming Diversity"

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Managing Diversity-Suggested Resources

Workforce 2020;Work & Workers in the 21st Century. The sequel to the Hudson Institute`s Landmark Study, Workforce 2000 Thomas,Jr. Roosevelt, From Affirmative Action to Affirming Diversity Thomas,Jr. Roosevelt, Differences Do Make a Difference Thiederman, Sondra, PHD.,Bridging Cultural Barriers for Corporate Success;How to Manage the Multicultural Workforce Corporate Practices in Diversity Measurement, A research report by The Conference Board Baytos, Lawrence M. Designing & Implementing Successful Diversity Programs 35

Managing Diversity, Suggested Resources, contd.

Managing Diversity in Healthcare, by Lee Gardenswartz & Anita Rowe. San Francisco: Jossey-Bass Publishers, 1998 Race in the

Workplace HR Magazine, March 2000 Where Diversity Really Works;America`s Best Companies for MinoritiesFortune, July, 1999 Digh, Patricia, The Next Challenge: Holding People Accountable. HR Magazine, October, 1998 Diversity, Building a Rainbow, One Stripe at a Time. HR Magazine, August, 1998 Prepared for the Future. Training Women for Corporate Leadership HR Magazine, April, 1997
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Managing Diversity, Suggested Resources, contd.

Its Time to take a Strategic Approach to Diversity Management Mosaics, Oct. 1996 Creating a New Balance Sheet: The Need for Better Diversity Metrics, Mosaics, Sept./Oct. 1999 If Your Organization Values Diversity, Why Are They Leaving? Mosaics, May/June 1999 Diversity Resisters: When No is Too Much and Yes Isn`t Enough Mosaics, Sept./Oct. 2000 Diversity Goes GlobalMosaics, Jan./Feb. 2000 Dealing Effectively with Disability Accommodations Mosaics, Nov./Dec. 2000 Tapping Into an Older Workforce Mosaics, Mar./April 2000
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