employee diversity

International Management MGT 4030Group 4

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Table of ContentsExecutive Summary.....................................................................................................................................3

Introduction.................................................................................................................................................4

Types of Diversity........................................................................................................................................4

Current Global Situation..............................................................................................................................5

Future trends...............................................................................................................................................5

Benefits of a Diverse Workplace..................................................................................................................6

Internal Benefits......................................................................................................................................6

External Benefits......................................................................................................................................7

Challenges of Diversity in the Workplace....................................................................................................7

Overcoming these Challenges.....................................................................................................................8

Successful Diversity Initiatives.....................................................................................................................9

IBM..........................................................................................................................................................9

AT&T......................................................................................................................................................10

Kraft Foods............................................................................................................................................10

Conclusion.................................................................................................................................................11

References.................................................................................................................................................12

Appendix A................................................................................................................................................15

(Source: http://www.mdanderson.org/careers/working-at-md-anderson/diversity-inclusion.html).......15

Appendix B................................................................................................................................................16

Appendix C................................................................................................................................................17

Appendix D................................................................................................................................................18

Appendix E.................................................................................................................................................19

Appendix F.................................................................................................................................................20

Appendix G................................................................................................................................................21

Appendix H................................................................................................................................................22

Appendix I..................................................................................................................................................23

Appendix J.................................................................................................................................................24

Appendix K................................................................................................................................................25

Appendix L.................................................................................................................................................26

Appendix M...............................................................................................................................................27


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Executive Summary

This report focuses on the value of employee diversity in the workplace, and analyses its role

in the betterment of workplace practices. The discussion includes the groups’ opinion on how

beneficial employee diversity actually is to an organization.

The report provides an overview of the current atmosphere regarding diversity, and goes on

to analyze the various challenges faced by companies implementing employee diversity

initiatives and provides general recommendations on how to negotiate those challenges in

order to build a stronger, more diverse workforce to successfully meet the requirements of the

modern day consumer.


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Introduction

Diversity management arose as a major concern from the 1980’s. As a result of

globalization, companies were exposed to international competition. People no longer lived

in an insular market place, but became a part of a broader international market. Most

companies realized the importance of having a diversified workforce to deal with the growing

and expanding market; they understood how a diversified workforce enables them to gain a

competitive advantage A diverse workforce comes along with many challenges, overcoming

these will not just benefit the individual employees, but the organization as a whole and lead

to better workplace practices.

Types of Diversity

Workplace diversity takes six main forms,

1) Age

2) Race

3) Gender

4) Physical abilities

5) Ethnicity

In addition, the following types of diversity are also present:

Work background

Income

Education

Geography

Religion

Parental status (Appendix A)


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Current Global Situation

Demographic Changes – As illustrated in appendix B, Demographic changes are a

major influence on diversity initiatives in the workplace. The numbers of women,

immigrants, and minority workers in workplaces today are booming and the impact of

diversity is difficult to ignore. Dual income families and single mothers are also

higher than ever before.

Global Marketplace – Globalization of companies has created the need for

multicultural perspectives.

Economics – A large percentage of the American customer base is filled with a

diverse population who are earning more money and are willing to spend more. The

same trend is taking place all around the world.

People more comfortable being different – They are no longer willing to assimilate

into the workforce, and take pride in their uniqueness in terms of religion, culture,

experiences, physical abilities etc.

Diverse customer base – Customers are more diverse when it comes to their

preferences, needs and wants and therefore businesses need a diverse workforce to

respond to the customer requirements and communicate effectively.

Equal Employment Opportunity and Affirmative Action Programs – Due to these

policies there is an increasing trend among employers to promote diversity in the

workplace (Appendix C).

Generational gaps – Longer lifespans and late retirements have resulted in four

generations working side by side with their own attitudes on technology, mind-sets,

work habits, and customs (Appendix D).

Future trends

Diverse societies

Increasing global footprint of corporations

Diversity becoming a business issue (Appendix E)

Diverse work teams

Increased involvement of senior management in diversity issues

Diversity training integrated


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Benefits of a Diverse Workplace

A company which embraces and encourages its workforce diversity will gain benefits in both

internal and external contexts (Appendix F). The main benefits are as following,

Internal Benefits

Innovation – In a diverse work force, new attitudes are brought in by people from

different cultures. These different types of attitudes and viewpoints enable the

company to create suitable innovative products depending on the market.

Creativity – Compared to a company with limited or no diversity, a company which

has such a work force will bring in different approaches to attain company goals,

which in return creates creativity in the workplace.

Increase of efficiency and productivity – Building a diversified work force is similar

to building a microcosm of the world inside a company. Therefore such a company

will be able to understand the market and provide products and services more

efficiently, increasing the productivity within.

Learning – Each employee will gain new experiences by working with people from

different walks of life, and it will help them to be better at what they do.

Employee retention – A healthy work environment which allows, encourages, and

rewards employee diversity will make sure that the company retains its employees. It

is important for employees to feel a sense of belongingness and security as it also

encourages them to be more productive and trust the employer.

Business process improvement – In a world where change is constant, the adaptability

of the company plays a major part in its survival. A work force that can work in

collaboration and bring in individual experiences, skills, and ideas can help a

company adapt to any situation quickly and more efficiently.


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External Benefits

Greater customer focus – Including men and women from a variety of cultures in the

workplace will also allow the company to understand its customers better. Cultural

opinions, language skills and unique attitudes are effective tools to focus on the

preferred customers of the company and build a healthy relationship with them.

Stronger Image and Branding – A company which encourages employee diversity by

eliminating discrimination will always receive positive feedback from the society.

The company image and name will be associated in a more positive frame, and this

also helps a company attract the best work force the society can offer.

Opens up new markets – As mentioned above tools such as cultural opinions,

language skills and attitudes can be used as an advantage for a company looking to

expand to broader markets. A diversified work force enables a company to make the

necessary adjustments to enter a new market and also sustain and grow in it.

Challenges of Diversity in the Workplace

Three key challenges persist when implementing employee diversity initiatives in the

workplace. These are:

1. Communication – Without communicating properly, the barriers that are

present between groups due to actual or perceived differences and pre-

conceived notions cannot be broken through and instead will result in

confusion, lack of team work, and low morale.

2. Resistance to change – there will always be employees who will refuse to

accept the present situation regarding diversity in the workplace and will not

be keen on changing what they have been doing all this time. This will hinder

the generation of new ideas, and obstruct progress.


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3. Implementation of diversity in workplace policies – A company that invests

their resources into training its employees in diversity and developing intricate

policies is not guaranteed that they will have a dynamic and diverse

workplace. There has to be commitment from all employees for policies to be

regarded as a success.

Overcoming these Challenges

Overall, it has been evident, considering the progress made by many multinational

corporations, that those costs that might be incurred in promoting diversity in the workplace

are outweighed by its positives (Appendix G). Some of the steps taken by world class

companies are:

Assessment of diversity in the workplace – Assessing and evaluating diversity

progress is an integral part of the management system. It helps your

management team determine which challenges and obstacles are present in the

workplace.

Development of diversity in the workplace plan – A comprehensive,

attainable, and measureable plan that will help determine the structure of your

diversity and provide a timetable for changes to be made.

Implementation of diversity in the workplace plan – This is a key area, where

leaders and managers in the organization must incorporate diversity policies

into every aspect of the organization. There needs to be commitment,

participation, and corporation from all employees, including those who are in

executive and management positions in order to successfully implement and

manage these policies.

In addition, other measures can be taken to manage diversity issues in the

workplace (Appendix H). These include,


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Warding off change with inclusion – Involve every employee in formulating

and implementing diversity initiatives in the workplace.

Fostering an attitude of openness in your organization – Encourage employees

to express their ideas and opinions.

Launching a customizable employee satisfaction survey- Use the results to

build and implement successful workplace diversity policies.

Utilizing diversity training – In order to shape diversity policy.

Promoting diversity in leadership positions – Provides visibility and realizes

the benefits of diversity in the workplace.

Successful Diversity Initiatives

IBM In 1995, CEO Gerstner launched a diversity task force initiative that became a

corner stone of IMB’s HR strategy (Cunningham, p.53). As a result, the company’s

profitability and efficiency increased. In 2001 the organizations activity accounted for more

than $300 million in revenue compared with $10 million in 1998 (Thomas, D. 2004, p.2).

Each task force focused on a different group such as Asians, homosexuals, and women

(Appendix I).

52% of IMB’s worldwide management council (WMC) the top 52 executives who

determined cooperate strategy is composed of women, ethnic minorities born in the Unites

States and non-citizens. Another practical example of how IBM works with diversity is in

recruitment and selection of employees and managers. “Fifty percent of IBM Sweden’s

trainees should be female and fifty percent should be male. And when a manager is recruited

there should always be a male and a female candidate for the job. The successes of these

initiatives are highlighted by the many accolades IBM has received since then (Appendix J)

Effective management of workforce diversity policy is an important strategic

objective and every IBM manager is expected to abide by this policy. At IBM diversity is its

competitive advantage and it drives innovation (Appendix K).


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AT&T

AT&T was included among DiversityInc's 2010 Top 10 Companies for Diversity

(Appendix L), for its longstanding commitment to diversity and inclusion across its global

operations. In 2007 and 2009, AT&T ranked No. 1 among DiversityInc's Top 10 Companies

for African-Americans based on the company's strong diversity record and programs geared

toward African-American employees.

AT&T connects with diverse customers and markets through its multicultural

outreach initiatives. Its visionary leadership in the areas of diversity and inclusion has

contributed to national recognition as an employer of choice and a preferred business partner.

"A diverse workforce and inclusive culture are essential to AT&T. They allow us to attract

and retain the best and the brightest to develop the most innovative products and solutions to

meet our customers' needs" (Appendix M). AT&T was ranked No. 10 on the Fortune 500 and

claims a long record of involvement with a diversity strategy.

Kraft FoodsKraft foods, an $11billion brand consisting of over 70 brands and generating revenues of $48

billion, consider diversity, among its 140,000 strong global workforce, to be a competitive

advantage.

The company has devised a comprehensive “Diversity Vision” as one of its business

cornerstones. This encompasses five important aspects:

1. Making “effective diversity management” a “core leadership competency and

business priority”

2. Respecting the value of employees with different life experiences, styles, and

backgrounds

3. Being responsive to different employees’ needs for “work solutions”

4. Providing opportunities for employees to continually develop skills and

contributions

5. Creating a workforce reflective of the company’s diverse consumers

Kraft has equal opportunity for women, over half of the 11 management team members are

women or minorities, and the top 30 leaders represent 10 nationalities. Kraft Foods’


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workforce is also diverse—of its North American employees, 20.8 percent are people of color

and 35.1 percent are women.

Conclusion

In conclusion, the importance of introducing measures to show the added value of managing

diversity is very clear. But it’s also important to consider the positive and negative impacts

that can arise. It’s the ability to manage diversity that makes the difference – not just diversity

itself. Our research indicated areas in which diversity has an impact, but companies need to

customize initiatives and interventions to manage diversity in ways that contribute to the

organizations objectives.


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References

The Benefits of a Diverse Workforce, Innovation Zen. Retrieved March 4, 2012, from

<http://innovationzen.com/blog/2007/05/07/the-benefits-of-a-diverse-workforce/>

Business Advantages of Diversity in the Workplace: Integrating Workers from Culturally

Diverse Backgrounds, Multicultural Marketing, Multicultural Sales, Multicultural Training,

Multicultural Consulting, Speaker, Trainer, Consultant, Michael Soon Lee. Retrieved March

4, 2012, from <http://www.ethnoconnect.com/html/articles_09.html>

Carr-Ruffino, N. (1999). Diversity success strategies, Boston: Butterworth-Heinemann

Challenges of Diversity In The Workplace, Diversity News: Raising Awareness to Equal

Opportunity Issues in Society. Retrieved March 4, 2012, from

<http://www.insightintodiversity.com/diversity-issues/599-challenges-of-diversity-in-the-

workplace-.html>

Chapter 12: Managing Diversity in the Workplace, UCSF Human Resources. Retrieved

March 4, 2012, from <http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-

managing-diversity-in-the-workplace/>

Cunningham, D., Green, D. (2007), “Diversity as a Competitive Strategy in the Workplace”,

Journal of Practical Consulting, vol. 1, Issue. 2, pp. 51-55.

Dodget,R.,Luthans, F. & Doh, J. (2008), International Management: Culture, Strategy and

Behavior, 6th edn, McGraw-Hill, New Delhi.

http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/

http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/

http://www.insightintodiversity.com/diversity-issues/599-challenges-of-diversity-in-the-workplace-.html

http://www.insightintodiversity.com/diversity-issues/599-challenges-of-diversity-in-the-workplace-.html

http://www.ethnoconnect.com/html/articles_09.html

http://innovationzen.com/blog/2007/05/07/the-benefits-of-a-diverse-workforce/


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Ezelle, S., Wise, R. & Moody, A. (2010), “For Kraft Foods, Equal Parts Diversity and

Inclusion Make a Recipe for Success”, In-House Defense Quarterly, pp.4-7

Greenberg, J., Diversity in the Workplace: Benefits, Challenges and Solutions. The

Multicultural Advantage: Career Management and Job Info for Professionals from Diverse

Backgrounds. Retrieved March 4, 2012, from

<http://www.multiculturaladvantage.com/recruit/diversity/Diversity-in-the-Workplace-

Benefits-Challenges-Solutions.asp>

Humphreys, J. M. (2004, August). The multicultural economy 2004: America's minority

buying power. Georgia Business and Economic Conditions, 63, 3, 1-12.

HR022/HR022: Diversity in the Workplace: Benefits, Challenges, and the Required

Managerial Tools . (n.d.). EDIS - Electronic Data Information Source - UF/IFAS Extension.

Retrieved March 4, 2012, from <http://edis.ifas.ufl.edu/hr022>

Jayne, M. E. A., & Dipboye, R. L. (2004, Winter). Leveraging diversity to improve business

performance: Research findings and recommendations for organizations. Human Resource

Management, 43, 4, 409-424.

Pros & Cons of Diversity Management in the Workplace | Small Business - Chron.com.

Small Business - Chron.com. Retrieved March 4, 2012, from

<http://smallbusiness.chron.com/pros-cons-diversity-management-workplace-3028.html>

Thomas, D. (2004), “Diversity as Strategy”, Harvard Business Review, pp.1-9

Wentling, R. M., Diversity. National Center for Research in Vocational Education. Retrieved

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March 4, 2012, from <http://ncrve.berkeley.edu/CW82/Diversity.html>

Wentling, R.M., Palma-Rivas, N. “Current Status and Future Trends of Diversity Initiatives

in the Workplace: Diversity Experts' Perspective” National Center for Research in

Vocational Education Retrieved March 4, 2012, from

<http://vocserve.berkeley.edu/allInOne/MDS-1082.html#Heading14>

Appendix A

http://ncrve.berkeley.edu/CW82/Diversity.html


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(Source: http://www.mdanderson.org/careers/working-at-md-anderson/diversity-

inclusion.html)

Appendix B


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Demographic Trends in the United States

(Source: Hewitt Associates, The workforce is changing: Is your organization?)


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Appendix C

Minority Representation

(Source: U.S. Equal Employment Opportunity Commission, 2007)


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Appendix D

Differences between the Four Generations of Employees

(Source: http://www.fdu.edu/newspubs/magazine/05ws/generations.htm)


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Appendix E

Workplace Diversity Practices Survey (Impact of diversity)

(Source: SHRM 2006 Workplace Diversity Practices Survey Report)


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Appendix F

(Source: CSES Survey of Companies)


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Appendix G

(Source: CSES Survey of Companies)


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Appendix H

How Diversity Can Be Managed Effectively

(Source: Cunningham & Green, 2007, p.54)


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Appendix I

(Source: Thomas, D. 2004, p.5)


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Appendix J

Accolades Received by IBM for its Diversity Initiatives

Diversity

Year Award

2010 DiversityInc names IBM the No. 1 company for global diversity

2010 IBM ranks #4 on Barron's World's Most Respected Companies list

2009 IBM makes list Black Enterprise Magazine's list of top companies for diversity

2009 DiversityInc Top 50 list:

10th in the Top 50 list 1st for People with Disabilities 2nd for Supplier Diversity 4th for LGBT and Asians

Sustained rank of 2nd for Global Diversity Companies

2010 IBM wins 2010 Out & Equal Workplace Excellence Award

2011 Working Mother Magazine: IBM is in 2011 Working Mother 100 Best Companies

2010 IBM named in Top 100, Top 10 and Best Companies for Multicultural Women in Working Mother 100 Best Companies 2010

(Source: http://www.ibm.com/us/en/)

Appendix K

http://www.ibm.com/us/en/


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IBM Financial Success due to Diversity Initiatives

(Source: IBM Annual Report 2010)


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Appendix L

(Source: http://diversityinc.com/)

http://diversityinc.com/


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Appendix M

Diversity and Inclusion at AT&T

(Source: http://www.att.com)

http://www.att.com/

employee diversity

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