HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Topics HRM: Leading teams

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Diversity Demographic diversity: differences in observable attributes such as age, gender, ethnicity Psychological diversity: differences in underlying attributes such as abilities, personality, attitudes, values

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Managing diversity - old wine in new bottles? Equal opportunity in general Supporting minorities (gender, handicaped, race, religion etc.) Supporting older employees Coping with cultural differences in general...  New is the attempt to change the basic approach towards diversity: diversity not as „necessary evil“, but as "competitive advantage"

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 At UBS, we believe that open minds open markets. That’s why we’re committed to creating a dynamic, flexible work environment that fosters creativity and innovation and, at the same time, values diverse perspectives. To compete as a global financial services firm, we must evolve our concept of diversity alongside our service offerings and brand identity. That’s why we have developed a Global Diversity Strategy that hinges on Regional Operation, and is based on the fundamental notion of Local Respect. The approach, in line with our integrated business model, is key because Diversity focal points are based on societal issues and vary by location. While Diversity necessarily encompasses a broad array of values, some examples of local areas of focus include gender in Europe, ethnicity in the US, and local talent in Asia Pacific. The bottom line is that Diversity is important for all employees – in every region – as we attempt to build a culture that enables UBS to attract and retain the very best talent. A diverse and engaged employee base will fuel our creativity, which in turn will fuel our organic growth, creating long-term value for our clients and shareholders. Sincerely, Peter Wuffli Group Chief Executive Officer Quelle:

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Diversity Management - furthering trends demographic change –e.g. problems in recruiting personnel globalization of business –e.g. international supply chain relationships and mergers/acquisitions/international cooperations increasing service orientation –e.g. responding to special needs in regional markets and of particular target groups new concepts of organization –e.g. increasing mix of functions/professions

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Measures for Diversity Management Complementing formal equal opportunity programs by –supporting changes in attitudes and behaviors (reducing stereotypes etc.) for management and employees –via training –via direct feedback on behavior –via directly experiencing other cultures (national, social groups etc.) –via building minority networks Intercultural management

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Success of Diversity Management Studies on the relationship between group diversity and performance: General assumption is that diversity produces negative effects through social categorization and positive effects through increased information e.g. in work teams negative effects of demographic diversity weaken and positive effects of psychological diversity get stronger over time (Harrison et al., 1998) e.g. in student study groups cultural majorities profit from cultural minorities more than vice versa (Brodbeck, 2005) Sucess of trainings and behavior modification programs not systematically evaluated  Basic assumption that in an increasingly multi-cultural societal and organizational environment the acceptance and positive use of diversity is inevitable  Necessity for a basic culture change in organizations

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Lip service? Arguments against Diversity Management: –additional effort needed in all parts of HRM –discrimination pays off –Labor supply (still) higher than labor demand

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Exam written, open book, 1.5 h Monday June 2, 8:15 - 9:45, HG F1 five essay questions, four have to be answered sample questions: (1) Name advantages and disadvantages of performance- related pay. What are important issues to consider when introducing pay for performance systems? (2) HRM is a strategic and operative leadership task. Which specific demands follow from that for line supervisors? Exam counts for 50% and semester project for 50% of total course grade.

HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Road map for HRM: Leading teams (Spring Semester) MotivationSatisfaction Performance Personnel selection Performance appraisal / Compensation Personnel development Task / Work process