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?

This Diversity Seminar.

IS

IS NOT

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

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

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.

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.
8

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 longterm 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

12

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%)

13

Mastering Diversity Competencies

Takes a Lifetime
Be well informed about
external pressure points
Anticipate and manage
stakeholders e.g. advocacy,
community, nongovernment 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 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

Source: SHRM/Fortune Diversity

Survey

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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.

19

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.

20

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"

25

Diversity Initiative:Intervention Options

Intervention
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
Organizational
Dimensions

Management Status
Union Affiliation

Organizational Dimensions (1999)

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

Work Location
Functional
Level/Classification

External Dimensions (2000)

Work Content/Field

Empowerment
Choice-based change efforts

Division/Department/U
nit/Group

Internal Dimensions (2001)

Seniority

Adapted from:

Gardenswartz & Rowe, Diverse Teams at Work

Loden, Implementing Diversity

Diversity Council

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Designing the Diversity Council at

the University of Maryland Medical
System
Outcomes
Diversity Management

Recruitment and Staffing

Retention, Morale and Positive Employee Relations

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

Customer Satisfaction
Strategies

Metrics
Diagnostic measures
Success indicators

Employee Engagement - Employee Opinion Survey

Culture Change - Denison Culture Survey

Leadership Development

Diversity Council Charge

Charge
Selection criteria
Membership
Reporting
Roles

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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

29

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
32

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"

34

Managing Diversity-Suggested
Resources
Workforce 2020;Work & Workers in the 21 st 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: JosseyBass 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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