DIVERSITY MANAGEMENT

VGU - BIS 2010 - Intercultural Management Lecturer: Prof. Dr. Barbara Winckler-Ru Students: Ho Minh Chuc Tran Phuong Mai

Agenda
1. Definition 1. What is Diversity? 2. Workforce diversity 3. What is diversity management? 2. Diversity Dimension 3. Why Diversity Management is important to organization? 1. The rationale for diversity management 2. Advantages and disadvantages of diversity 3. Suggested effective way for diversity management

Objectives
1. To understand the basic characteristics of Diversity Management 2. To understand the benefits of Diversity Management 3. To promote effective approach for Diversity Management

Can you see diverse characteristics?

What is diversity?
Diversity represents Individual differences resulting from age, gender, race, ethnicity, religion, sexual orientation, and socioeconomic background.

Source: George, Jennifer and Jones, Gareth: Understanding and Managing Organizational Behavior, 6th ed., New Jersey, 2011

What is diversity? (cont)

Diversity describes human qualities such as race, gender, and ethnicity that are different from our own and that are outside the groups to which we belong.

Source: Gibson, James, et al.: Organizations: Behavior, Structure, Processes, New York, 2011

Whats about Workforce diversity?

Workforce diversity is the mix of people in organizations in terms of gender, race, ethnicity, disability, sexual orientation, and age, and demographic characteristics such as education and socio-economic status

Source: Langton, Nancy and Robbins, Stephen: Fundamentals of organizational behaviour, 3rd ed, Canada, 2006

Workforce diversity (cont)

Workforce diversity is a method of employment that gives everybody opportunity regardless of race, religion, sex and other variables

Source: Robinson, Lamar : Diversity Science Research Series. Volume I, Fultus Corporation - US, 2007

What is diversity management?

Diversity management is the task of recognizing, analyzing, and bridging differences between groups and individuals in order to maximize the value and creativity of each person as well as the synergistic benefits to the organization.

Source: Gillis, Tamara: The IABC Handbook of Organizational Communication: A Guide to Internal Communication, Public Relations, Marketing and Leadership, US, 2006

What is Inclusion?
Inclusiveness or Inclusion is the degree to which an organizations culture respects and values diversity. It is the focus of an organizations culture on welcoming and supporting all types and groups of people.

Source: Schermerhorn, John, et al.: Organizational Behaviour, 11 ed., US, 2010

Layers of diversity

Source: Hellriegel, Don & Slocum, John and Woodman, Richard : Organizational Behaviour, 13 ed., US, 2011

Layer of diversity - Primary

Age

Race

Ethnicity

Gender

Physical

Layer of diversity - Secondary

Education Work exp.
High school / B.S / Master

Fresh / Junior / Senior

Income

Low / Average / High

Layer of diversity Secondary (cont)

Marital Status
Single / Married

Religion

Christian / Buddhism / Muslim

Geography

North / South / Asia / Europe

Layer of diversity Secondary (cont)

Parental Status Behavior Style
Divorce / Happy

Open mind / Straight forward / Selfish

Key Dimensions Of Diversity

Religion Physical Challenges Values Family Status Workstyle Age Sexual Orientation

Socio-Economic Work/Life Education Status Balance Level Gender Merging Marital Status Appearance Culture

Professional Background Race

The rationale behind Diversity management

1. Globalization 2. Competitive Pressures. 3. Changing Workforce Demographics 4. Recognition and Desire for Diverse Viewpoints. 5. Legislation and Lawsuits

Rationale: Globalization
-

International Business requires International Management Outsourcing

Rationale: Competitive pressure

-

Business going global New suppliers, New customers, New competitors, etc.

Rationale: Changing Workforce Demographics

-

Age: workers get older Gender: more educated women Ethnicity: increasing Asian, Hispanic, Blacks

Education: higher

USs Changing Workforce Demographics

By 2050, the U.S. population is expected to increase by 50% and minority groups will make up nearly half of the population. The population of older Americans is expected to more than double. One-quarter of all Americans will be of Hispanic origin. More women and people with disabilities will be on the job.
U.S. Department of Labor, Futurework: Trends and Challenges for Work in the 21st Century. Washington, D.D. (Labor Day 1999).

Rationale: Recognition and Desire

for Diverse Viewpoints
To have a great idea, have a lot of them. Thomas Edison

Rationale: Legislation and Lawsuits

- Equal Employment

Opportunity (EEO)
- Affirmative Action (AA)

Does diversity management give your organization a competitive edge?

If so, how much is it connected to your mission effectiveness?

Advantages of Diversity management

Create a competitive advantage in: 1. Cost 2. Resource Acquisition 3. Marketing 4. Creativity 5. Problem solving and Decision making 6. System Flexibility
Source:Gilbert, Jacqueline & Stead, Bette and Ivancevich, John: Diversity Management - A New Organizational Paradigm, Germany, 1999

Advantages: Cost
- Reducing Turnover and Absenteeism. - Increasing Productivity (Sales & Profits)

Advantages: Resource Acquisition

- Good employer brand - Attracting the best personnel as the labor shrinks and changes.

Advantages: Marketing
-Bringing insight and cultural

sensitivity to the marketing effort;

-Increasing market share.

Advantages: Creativity
Increasing Creativity and Innovation.

Advantages: Problem solving and decision making

-Bringing a wider range of

perspectives;
-More thorough critical

analysis.

Advantages: System Flexibility

- Reacting to environmental changes faster and at less cost

Barriers to Diversity management

1. Prejudice and Stereotyping 2. Discrimination

Disadvantages of Diversity management

- Ambiguity, Complexity and Confusion - Ineffective communication - Difficult to reach a single agreement (i.e. consensus) - Difficult to reach a specific action leading to Conflict

Source: Langton, Nancy and Robbins, Stephen: Fundamentals of organizational behaviour, 3rd ed, Canada, 2006

Disadvantages: DiversityConsensus dilemma

The tendency for diversity in groups to create Process Difficulties even as it offers improved potential for problem solving

Source: Schermerhorn, John, et al.: Organizational Behaviour, 11 ed., US, 2010

Is diversity management a legal responsibility or a strategically voluntary initiative ?

Is diversity management an organizational process?

Successful Case studies

http://pg.com/diversity Diverse organizations will out-think, out-innovate and outperform a homogeneous organization every single time A.G. Lafley (P&G CEO)

http://www.google.com/diversity At Google, we dont just accept difference we thrive on it. We celebrate it. And we support it, for the benefit of our employees, our users, our culture and students interested in the technology industry. Google

Effective Diversity Management

Managing Workforce Diversity Focuses on accessing talent
Diversity Diversity Any collective mixture of Any collective mixture of differences and similarities similarities, differences, and

Strategic Diversity Management Focuses on optimizing all critical mixtures that impact the business

related tensions
Understanding Differences Focuses on appropriate relationships Ensuring Representation Focuses on inclusion/ exclusion decisions

Dr. R. Roosevelt Thomas, Jr., D.B.A

Common Diversity Management Components

Source: Mathis, Robert and Jackson, John: Human Resource Management, 12 ed., US, 2007

Diversity program: Diversity Training

- Awareness Training (self-aware, legal, cultural) - Sensitive Training (gay, lesbian) - Special Training (languages, women, disabilities) - Mentoring & coaching

Diversity program: Work-life balance

- Workforce Flexibility - Family-friendly workplace - Job-sharing scheme - Virtual team

Diversity program: Metrics as ROI of Diversity Management

- Define the unit of measure for

diversity (Criteria; Scorecard, KPIs)

- Establish the accountability - Assess the growth and improvement

Diversity Management Process

Source: Boston Consulting Group & European Association for People Management: Hard-Wiring Diversity into Your Business, 2011

Bibliography
Jennifer M. George, Gareth R. Jones: Understanding and

Managing Organizational Behavior, 6th edn, Prentice Hall, New Jersey, 2011 James L. Gibson, John M. Ivancevich, James H. Donnelly, Jr., Robert Konopaske: Organizations: Behavior, Structure, Processes, McGraw-Hill, New York, 2011 Don Hellriegel, John W. Slocum, Richard W. Woodman: Organizational Behaviour, 13 edn, Cengage Learning, 2011 Tamara L. Gillis - The IABC Handbook of Organizational Communication: A Guide to Internal Communication, Public Relations, Marketing and Leadership, Jossey-Bass, US, 2006 John R. Schermerhorn, James G. Hunt, Richard N.Osborn, Mary UhlBien: Organizational Behaviour, John Wiley & Sons Inc., US, 2010