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© Copyright, Pia Höök 2010
Diversity Management
Pia Höök Assistant Professor, KTH
© Copyright, Pia Höök 2010
Pia Höök, short introduction
• Assistant Senior Lecturer at KTH (2007-)
• Diversity Director at AB Volvo (2007-2009)
• PhD in Business Administration SSE (2001)
• Researcher at Stockholm School of Economics, Stanford University, the Royal Institute of Technology
• Expert for the Swedish Government Offices
© Copyright, Pia Höök 2010
Agenda
• Diversity Management in practice – What is diversity? – Why do companies work with diversity? – How do companies work with diversity?
• Critical studies on DM – Different turns and need for contextualization – The invisibility and elusiveness power – The privileged business case
• Diversity Day at The Office
© Copyright, Pia Höök 2010
What is diversity?
• http://www.youtube.com/watch?v=EsNBu-BvgbM&feature=related
• Info about diversity in the workplace
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Diversity and Inclusiveness
• A quantitative dimension – Making sure we have the competence we need in order to
survive in a short term as well as a long term perspective.
– Focus is on “mapping/monitor” diversity among employees and managers plus recruitment and retention activities.
• A qualitative dimension – Making sure we have a work climate/culture that enables
everyone to contribute to their fullest potential.
– Is often called inclusiveness, inclusion or inclusive culture.
© Copyright, Pia Höök 2010
Why do companies work with diversity?
http://www.youtube.com/watch?v=1Po7WOW845E&NR=1
• Discuss in pairs (5 min)
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Diversity and Inclusiveness. We need to focus both!
INCLUSION
DIVERSITY
High Diversity, AND: High work satisfaction “Healthy” employee turnover High loyalty with company High adaptability/agility High creativity and innovation
High Diversity (statistics), BUT: Frustration and conflict Low work satisfaction High employee turnover Low loyalty with company Low creativity and innovation
Low Diversity, AND: High work satisfaction Too low employee turnover Low adaptability/agility Risk of ”Group think” Low creativity and innovation
Market Leader
Source: “Guide to Inclusive Leaders” by Joerg Schmitz and Nancy Curl, TMC and Volvo Group
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The business case of diversity (Catalyst 2004)
• 353 Fortune 500 Companies studied during four years.
• Companies with highest representation of women on their top management teams experienced better financial performance (return on equity was 35 % higher, and return to shareholders 34 % higher).
© Copyright, Pia Höök 2010
The business case of diversity (Catalyst 2004)
• Catalyst Award-winning companies financially outperformed the rest of the companies.
• The leadership team that is knowledgeable enough to leverage diversity is likely to be creating effective policies, programs, and systems, as well as a work culture that maximizes a variety of its assets and create new ones.
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Catalyst Diversity Award Video 2010
http://www.youtube.com/watch?v=IufH9gQYpO8&feature=related
© Copyright, Pia Höök 2010
Top companies for diversity
• CEO involvement and commitment • Strong Metrics (which are followed up regularly) • Diversity training (mandatory for managers) • Employee network groups • Diversity is a factor in succession planning and
promotions etc. • Diversity targets tied to bonus, raises, promotions
etc. • Diversity networks and councils (working to plan
and improve strategies)
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Volvo Group Diversity Initiative
• Metrics and targets • Recruitment • Leader sourcing • Diversity Training • Executive Networks • Employee Networks • External Networks • Other Activities
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Critical studies of DM
• DM in perspective: different turns and the need of contextualizing
• The invisibility and elusiveness power • The celebrated business case
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Four Turns (Lorbiecki and Gavin 2000)
• The Demographic Turn • The Policial Turn • The Economic Turn • The Critical Turn
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Critical questions (Lorbiecki and Gavin 2000)
• The meaning of diversity • Its claims to lift morale and enhace
productivity • On what people are held to be different
from • The promotion of existing stereotypes • What counts as equality
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Contextualizing DM (Holvino & Kamp 2010)
• Risk for uncritically import US models • Different countries have different
histories and societal prerequisites • Need for contextual sensitivity when
analyzing and implementing DM
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Three dilemmas (Holvino and Kamp 2010)
• What differences and how differences? • A business case or a social justice
rationale? • DM sustain the status quo or does it
catalyze change?
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Diversity: difference and power
• Human variations => “Differences” • We of us are always marked by a variety of
“diversity dimensions” • Differences that are different from each other
(compare age to gender) • Difference linked to (legitimizing) power
relation/status hierarchy
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Difference and power
• Celebration of individual differences • Exclusion, discrimination, unequal
becomes celebrated differences • A discourse that doesn’t address power
becomes powerless • DM legitimizes and reproduces existing
power relations
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The privileged Business Case
• Business Case discourse marginalizes other discourses like Human Rights/Social Justice discourse.
• Excluded groups need to prove they are profitable. Privileged groups still have the privilege of interpretation to define when something/someone is profitable.
© Copyright, Pia Höök 2010
Finally; Diversity Day at The Office
http://www.youtube.com/watch?v=-j7wr-wsmcI&feature=related