The Role of Human Resources in

Managing Diversity : Change

Agent or Change Captive?
Presented by Arthur A. McCombs
MA, SPHR
October 29, 2008
2
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?
3
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

5
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
6
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.
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.
8
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.
9
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%
10
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.
11
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


12
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%)
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

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
22
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
R. Thomas,Jr.,"From Affirmative
Action to Afirming Diversity" 24
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 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?
26
Diversity Initiative:Intervention Options
I ntervention
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.
27
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/U
nit/Group
Seniority
28
Designing the Diversity Council at
the 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
D
i
v
e
r
s
i
t
y

M
a
n
a
g
e
m
e
n
t

Outcomes
Strategies
29
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
30
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
31
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
32
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
33
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
-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
35
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
36
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 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
37
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