1. OS 352 1/29/08 I. Strategic responses to employment laws II. Managing workforce diversity III. Discussion: Segal article

2. Strategic Responses to Employment Laws Symbolic compliance Compliance Competitive advantage

3. Diversity Although definitions vary, diversity simply refers to human characteristics that make people different from one another Individual characteristics over which a person has little or no control include biologically determined characteristics such as: race, sex, sexual orientation, age, and certain physical attributes, as well as the family and society into which he or she is born.

4. Included in the Diversity Definition Narrow Sex Race Ethnicity Broad Sex Race Ethnicity Age Abilities Sexual orientation / Transgender Caregiving / Parental status Religion Values Class background Marital status

5. Diversity Management Anti-discrimination compliance, efforts at inclusion, and the impact on the bottom line (Lockwood, 2005, SHRM report).

6. IBM on Diversity Randy McDonald, Senior VP HR (http://www-306.ibm.com/employment/us/diverse/50/rm.shtml, Sept. 2005 )http://www-306.ibm.com/employment/us/diverse/50/rm.shtml The success of our business hinges on the marketplace. We know our customer base is diverse. We also know that people are more inclined to do business with us if they see others like them in our organization. Going forward, the link between a diverse workforce and marketplace success is only increasing. Inside and outside the U.S., more IT buyers come from diverse ethnicities and backgrounds and represent more heterogeneous customer bases. Beyond that, being a leader in diversity underscores our commitment to an inclusive work environment where ideas and contributions are welcome, regardless of where you're from, how you look or what personal beliefs you hold. Our managers must leverage IBM's diversity and work/life balance programs to create a climate that lets every employee know that their opportunity at IBM is gated only by their performance. For employees, their intellectual contribution and diverse backgrounds are key to IBM's leadership. When both these perspectives are combined, we build a sense of community, and we have a workplace where everyone feels like a stakeholder.

7. Owens Corning on Diversity Dave Brown, President and CEO (http://www.owenscorning.com/acquainted/diversity/, Sept. 2005)http://www.owenscorning.com/acquainted/diversity/ Diversity at Owens Corning is about inclusiveness, mutual respect and doing what is right. It is about becoming a stronger team by leveraging the power of our individual differences. It is about the type of company we want Owens Corning to be. To realize the power that is possible through diversity, we continually strive to build a workforce and supplier network that reflects the diversity of the markets, communities and customers we serve."

8. Workforce Diversity Management Includes policies and procedures that support the view that all employees’ views and cultures are to be valued and respected. Cross-cultural training; sensitivity training Team training Work/life programs (e.g., elder care) Top management commitment to diversity Equal employment opportunity efforts Diversity scorecards External diversity advisory panel

9. Generate 2 Measures for each of the following Diversity Scorecard categories 1. EEO Compliance 2. Valuing diversity as part of the company culture 3. Diversity of teams 4. Diversity-related grievances / issues

10. What is a Measure? Instrument to obtain scores on individual opinions or perceptions, or organization performance. Should be a number or a percent or a frequency  statistic Should be specific Better: percent of high performers leaving the firm annually. Too general: turnover.

11. Barriers to Successful Diversity Management How to ensure that diversity initiatives foster inclusiveness and productivity rather than the opposite? Barriers to success: Poorly developed management rationale for promoting diversity Individual prejudices and defensiveness Lack of individual awareness / subtle biases Poorly designed training or an unqualified trainer Lack of management follow-up and reinforcement regarding diversity

12. Workforce Diversity Management: What is Most Effective? A study by Kalev, Dobbin, & Kelly (2006) of 708 establishments over 30 years found that … Diversity training aimed at reducing subtle biases was the least effective approach to increasing the diversity of a firm’s managers Mentoring and networking programs were somewhat effective in diversifying a firm’s managerial ranks Establishing responsibility for diversity outcomes was the most effective approach to increasing the diversity of a firm’s managers Affirmative action Diversity committees Diversity staff

13. % Earnings Differences Between Women and Men (Elvira & Graham, 2002) Total Compensation7%high Base Pay6%high Bonus26%low Formality