the role of human resources in managing diversity

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The Role of Human Resources in Managing Diversity : Change Agent or Change Captive? Presented by Arthur A. McCombs MA, SPHR October 29, 2008

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Page 1: The Role of Human Resources in Managing Diversity

The Role of Human Resources in Managing Diversity : Change

Agent or Change Captive?

Presented by Arthur A. McCombs MA, SPHR

October 29, 2008

Page 2: The Role of Human Resources in Managing Diversity

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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

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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.

Page 7: The Role of Human Resources in Managing Diversity

Source: The Hudson Institute Report, "Workforce 2000" 7

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.

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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 mandates-A Compliance Model

• Goal-Specific

• May achieve statistical goals without addressing attitudinal barriers.

• Compliance approach-May 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 Driven-

Model• Commitment to Diversity in

response to changing labor market can lead to sustained culture change and long-term success.

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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%)

Page 14: The Role of Human Resources in Managing Diversity

Creating a Competency Model for Diversity, The Conference Board,

2008 14

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

Page 15: The Role of Human Resources in Managing Diversity

Source: SHRM/Fortune Diversity Survey 15

How Diversity Initiatives Help an Organization Keep a Competitive Human

Resources Advantage• Improves corporate culture• Improves employee morale• Higher retention of

employees• Easier recruitment of

employees• Decreases complaints &

litigation• Enables the organization to

move into emerging markets

• Decreased interpersonal conflict among employees

• Improves client relations

• Increases productivity

• Improves the organization`s bottom line

• Maximizes brand identity

• Increases creativity

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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

Page 24: The Role of Human Resources in Managing Diversity

R. Thomas,Jr.,"From Affirmative Action to Afirming Diversity" 24

Diversity vs. MeritWhat managers fear is a lowering of

standards. But in a diverse workforce, competence counts more than ever.

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-R. Thomas, Jr."From Affirmative Action to Affirming Diversity" 25

The Right Question The wrong question: “ How are we doing

on race relations?” The right question: “Is this a workplace where `we` is everyone?”

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Diversity Initiative:Intervention OptionsIntervention

Options:

External Consultant

Consultant, HR, & Diversity

Council

Human Resource

Driven Model

(internal)

Consulting

Component:

Consultant

drives program

Hybrid team drives program design & installation.

HR serves as

an internal

consultant

Benefits or

Risks of this Option:

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

leaves.

Shared effort &

ownership

of diversity program.

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

Adapted from:• Gardenswartz & Rowe, Diverse Teams at Work• Loden, Implementing Diversity

Organizational Dimensions (1999)

•Training & OD initiatives•All-Team Briefings•Dialogue Sessions•Collaborative learning

External Dimensions (2000)

•Empowerment•Choice-based change efforts

Internal Dimensions (2001)

•Diversity Council

Organizational Dimensions

Management Status

Union Affiliation

Work Location

Functional Level/Classification

Work Content/Field

Division/Department/Unit/Group

Seniority

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Designing the Diversity Council atthe University of Maryland Medical

System

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

Recruitment and Staffing

Retention, Morale and Positive Employee Relations

Customer Satisfaction

Employee Engagement - Employee Opinion Survey

Culture Change - Denison Culture Survey

Leadership Development

Div

ersi

ty M

anag

emen

t

Outcomes

Strategies

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Outcomes of the Diversity Initiative atthe University of Maryland Medical

SystemCurrent 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

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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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-R.Thomas, Jr."From Affirmative Action to Affirming Diversity" 34

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

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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”

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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 Minorities”Fortune, 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 Global”Mosaics, Jan./Feb. 2000• “Dealing Effectively with Disability Accommodations”

Mosaics, Nov./Dec. 2000• “Tapping Into an Older Workforce” Mosaics, Mar./April 2000