1. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Topics HRM: Leading teams

2. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 What is meant by team diversity? Demographic diversity: differences in observable attributes such as age, gender, ethnicity Psychological diversity: differences in underlying attributes such as abilities, personality, attitudes, values

3. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Why are organizations concerned with diversity management? 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 in work teams

4. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 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 A voice from the past...

5. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Managing diversity = Anti-discrimination programs ? Anti-discrimination programs were first –Equal opportunity, affirmative action, general support for minorities etc. in order to deal with inevitable diversity –Basic approach: avoid negative consequences of diversity Diversity Management –Deliberate attempts to increase diversity, e.g. through selection, team composition, organizational networks –Basic approach: seek diversity as competitive advantage General assumption In increasingly multi-cultural organizational and societal environments the acceptance and positive use of diversity is paramount.

6. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Measures for Diversity Management Complementing equal opportunity programs by supporting changes in individual attitudes and behaviors (reducing stereotypes etc.) –via training –via direct feedback on behavior –via directly experiencing other cultures (national, socio- ecomomic differences etc.) –via building minority networks Selection and training for intercultural management Deliberate increase in diversity through selection, international collaborations etc.

7. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Success of Diversity Management ? Studies on the relationship between team diversity and performance –Negative effects through social categorization –Positive effects through increased information; however: sharing information is generally difficult –With time negative effects of demographic diversity (  social categorization) decrease and positive effects of psychological diversity (  information sharing) increase (Harrison et al., 1998) –Cultural majorities profit from cultural minorities more than vice versa in student groups (Brodbeck, 2005)

8. HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Success of Diversity Management ? Studies on the relationship between team diversity and performance (contd.) –Positive attitude towards diversity is important to achieve positive effects (Van Dick et al., 2008). –More complex tasks are dealt with better by heterogeneous groups (Bowers et al., 2000). –Group goals support performance in diverse (individualists/collectivists) and non-diverse teams (Crown, 2007) No studies available on diversity and firm performance