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Organizational Processes for TPP:Organizational Processes for TPP: Session Session 77

Managing Diversity in Organizations

& Affirmative Action Planning

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Session Design (3 hours)Session Design (3 hours)

• Introduction (5 min.) • Key concepts and historical context (15

min.) • Diversity research and organizational

performance (30 min.) • Case examples (45 min.) • Break (10 min.) • Preparing for the Affirmative Action

Reactions (30 min.) • Role Plays (45 min.)

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Key Issues for TodayKey Issues for Today

• How do we gain competitive advantage from the diversebackgrounds, knowledge bases, and cultural experiencespresent in today’s workforce?

• What is the relationship between diversity and organizationalperformance? Business Case” for diversity?

• How can we manage diverse teams to product positive organizational and personal results?

• What are the elements of a systemic organizational approachto managing diversity?

• How do we prepare for the coming debates/reactions to theaffirmative action case?

Is there a “

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DiversityDiversity----Some Visible Some Visible ElementsElements

• Gender • Race • Ethnic • Age • Cross Cultural – look around!

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Some Hidden Aspects of DiversitySome Hidden Aspects of Diversity • Cognitive – how we approach problems • Discipline or Function--different

knowledge; different solutions • Cultural – norms of interaction &

communication • Multiple identities – woman, engineer,

mother, project leader…..which one do others see? Which one comes out?

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The Rhetoric TodayThe Rhetoric Today

“The Business Case” for Diversity – Talent Shortage – We need to reflect our customers – Diverse teams produce better results

Lew Platt, former CEO, Hewlett Packard

How did we get here?

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A Brief Historical TourA Brief Historical Tour

• 1960s-70s

• 1980s

• 1990s-present

• New Legal Requirements; Civil Rights Pressures; Affirmative Action

• “Valuing Diversity”: Focused on Attitudes and Sensitivities

• The Business Case: accelerate rate of progress

Training

Expected to

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Prior EvidencePrior Evidence

• Legal/social pressures improved formal organizational HR practices but had little effects on attitudes, behaviors, or “subtle” discrimination

• Few sustained effects of “valuing diversity” training

• No consistent relationship between demographic diversity and team performance

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Diversity Research Network Diversity Research Network ProjectProject

• Industry-Academic Partnership – BOLD Initiative – Multi-university research Network – Field Studies in Companies

• qualitative histories • quantitative analysis at team/group levels

• Focus is on a “business case” analysis --diversity-group process-performance outcomes

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Elements in a Systemic Model: Elements in a Systemic Model: BenchmarkingBenchmarking

• Commitment from the Top • Commitment embedded in Org. Values &

Strategies • Dedicated Resources--Accountable Prof. Staff • Management Accountability-Link to Perf. Reviews • Broad Communication-Info Exchange • Strong Fairness/Compliance System/Procedures • Diversity Training that Reaches All--Effectively • Mentoring & Career Development Supports • Diversity Committee/Identity Groups • Evaluation, Measurement of Effects/Progress

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Beyond “Best Practices” Beyond “Best Practices” Human InteractionsHuman Interactions

• Perspectives: – Legal Requirement – Labor or Product Market Necessity – Opportunity for Learning

• Skills & Capabilities for Leading & Working in Diverse Settings

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The Research Model The Effects of Diversity on Group Processes and Outcomes

Organizational Culture Business Strategy

Human Resource Policies

Diversity Group/Team Processes Outcomes

Cultural Communications Performance Demographic Conflict Satisfaction Technical Cohesion Turnover Cognitive

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EvidenceEvidence----Building from the Building from the StudiesStudies

• Historical Context: achieved through sustainedeffort, external pressure, mgmt. commitment

• External pressure necessary, but not sufficient--a learning/integration perspective also needed

• HR systems/decisions must sustain diversity through criticaltransitions in business--growth, mergers, layoffs, topmanagement shifts, etc.

• Group dynamics and leadership are critical processes thatdetermine whether diversity produces positive or negativeresults: – communications – conflict management – cohesion

Diversity

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Additional Considerations: Additional Considerations: “Perspectives” Toward Diversity”“Perspectives” Toward Diversity”

• Legal Requirement

• Labor or Product Market Necessity

• Opportunity for Integration & Learning

Alternative Alternative

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Four Case StudiesFour Case Studies

• Two Information Processing Firms • A Financial Services Firm • A Retail Chain

All large firms with national reputations for a longstanding commitment to diversity

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Case 1: Case 1: Karen Karen JehnJehn and and KaterinaKaterina BezrukovaBezrukova

• No direct relationship between race or gender diversity andperformance

• Different types of diversity have different effects on group processes: – gender diversity--positive – Racial--negative

• Training focused on management of group processes reducethese negative effects

• Constructive group processes have positive effects on diversity • Gender diversity had positive effects on performance in units

with a people oriented culture but not others • Racial diversity had negative effects in units with a competitive

culture but not others

Information Processing FirmInformation Processing Firm

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Case 2: Case 2: Robin Ely and David ThomasRobin Ely and David Thomas

• Few direct effects of diversity on performance • Effective group processes positively associated with

sales revenue, productivity, and customer sat. • No evidence that group processes mediated the

diversity—performance relationship • Racial diversity had a positive effect on performance

in branches with a high integrative and learning perspective and a negative relationship with performance in units with a low integrative and learning perspective

Financial Service BranchesFinancial Service Branches

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Case 3: Case 3: Susan Jackson and Susan Jackson and AparnaAparna JoshiJoshi

• Team Level: – No significant negative or positive effects of race or gender diversity on either

team processes or performance when teams were analyzed without regard toorganizational context.

• District Level: Mixed Evidence: – Greater gender and ethnic diversity associated with higher team cooperation – Regions with more – Regions with more racial diversity performance worse on some measures

• Additional analyses at the district level revealed that the effects of team diversity depend upon the amount of diversity within the district. – Service Teams:

performance in districts with high gender diversity – Sales Teams:

performance in districts with high racial diversity

Information Processing FirmInformation Processing Firm

gender diversity performed better on some measures

Team gender diversity improves team processes &

Team racial diversity improves team processes and

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Case 4: Case 4: ChainChain

David Levine, Jonathan Leonard, and David Levine, Jonathan Leonard, and AparnaAparna JoshiJoshi • Focus was to test relationship of workforce

diversity—customer diversity link • No relationships between workforce and customer

diversity observed • Some small, positive effects for racial and gender

diversity on sales performance. outweighed by positive effects of percent male and percent white on performance

Branch Stores of a Retail Branch Stores of a Retail

But this was

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Conclusions: Conclusions:

• More evidence for lack of significant direct diversityperformance relationship

• Some evidence that racial diversity may still havesome negative effects on group processes orperformance

• Negative effects may be reduced or eliminated bytraining focused on group processes

• Some support for an “integration & learning”perspective

• Some indications that diversity in the largerorganization helps diverse groups perform well

Is the glass half full or half empty?Is the glass half full or half empty?

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EvidenceEvidence----Building from the StudiesBuilding from the Studies • Historical Context: achieved through sustained

effort, external pressure, mgmt. commitment • External pressure necessary, but not sufficient--a

learning/integration perspective also needed • HR systems/decisions must sustain diversity through critical

transitions in business--growth, mergers, layoffs, topmanagement shifts, etc.

• Group dynamics and leadership are critical processes thatdetermine whether diversity produces positive or negativeresults: – communications – conflict management – cohesion

Diversity

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Some Managerial ImplicationsSome Managerial Implications

• Modifying the “Business” Case (next slide) • Is it time to Look Beyond the Business Case?

• Importance of Group Process Training

• Need for a more Analytical Approach to Diversity Management

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Revised Statement of the “Business Revised Statement of the “Business Case” for DiversityCase” for Diversity

Diversity is a reality in both labor markets and product markets today. ing with and gaining value from this diversity requires a sustained, systemic approach and commitment. ted by a perspective that views diversity as an opportunity for everyone in an organization to learn from each other how to better accomplish their work and an occasion that requires a supportive and cooperative organizational culture as well as group leadership and process skills required for effective group functioning. invest their resources in taking advantage of the opportunities that diversity offers should ooutperform those that fail to make such investments.

To be successful in work

Success is facilita

Organizations that

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ResearchResearch——Lessons LearnedLessons Learned • More difficult than we expected!

• Many organizations interested but most declined to participate

• Data access problems—can be overcome but with lots of work on researchers’ part

• Testing the full model is difficult in any single setting

• Cross organization designs may be unrealistic

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Directions for Future ResearchDirections for Future Research • High priority to organization-specific

experiments

• Deeper mix of contextual, qualitative,historical, and quantitative research designs

• Great value in building a research network—and keeping it loosely structured

• Importance of building collaborativerelationships with specific organizations

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The MIT CaseThe MIT Case • President Vest:

– Visible leader in legal battle for diversity in admissions – Financial support for minority hiring; created Campus

Committee on Race Relations; supports women’s study… – Understands need to work to gain value from diversity

“The tensions introduced by diversity into the academic community are very real. differences of experience, culture and perspective to enrich, rather than divide our community…”

Source:

Commitment with Understanding

We need to find ways for our

1992-93 President’s Report

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MIT, contd.MIT, contd. • Mgmt. Accountability--still working on this! • Communications--Active MLK day; Women in Science • Compliance Systems--very decentralized to departments • Training--voluntary--some good examples; low coverage • Mentoring/Career Supports--very decentralized; spotty • Diversity Committees/Identity Groups:

Science; Women in Engineering; Women in Sloan… • Evaluation-Measurement--studies underway on undergrads,

faculty, and staff--part of the MIT culture • Informal Culture and Process Skills:

CCRR; Women in

Still Problematic

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Affirmative Action: Affirmative Action: What it’s Not & How it Works at What it’s Not & How it Works at

MITMIT Presentation of the Committee on Campus Race Relations (CCRR)

What it is, What it is,

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Introduction & OverviewIntroduction & Overview

• MIT’s Position in Summary Form

• History of Affirmative Action—where did the concept come from?

• Legal History—Background to the Michigan Case

• Affirmative Action at MIT—how does it work here?

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Affirmative Action: Affirmative Action:

• 1961: JFK E.O. 10925: use AA to insure equal treatment

• 1964:

• 1965: use AA to expand minority job opportunities – Labor market analysis – Organizations must designate responsible officer – Plan for utilizing minorities and women

Brief HistoryBrief History

federal contractors to

Civil Rights Act & creation of EEOC

federal contractors to LBJ E.O. 11246:

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Affirmative Action: Affirmative Action: • 1978: v U of Cal: pheld race as one factor in

admission but outlawed reserving specific number of slots forminorities – 5-4 decision – “Strict Scrutiny” doctrine established—must be able to show a

compelling government interest and means used be narrowlytailored to serve that interest

• 1996: Abolished all public sector AA programs in ed and employment and contracting

• 1996: Ct. of Appeals: Law School’sadmission policy of considering race unconstitutional under equal protection clause

• U of Michigan cases: versities add points to admissionsscores for underrepresented minorities?

Legal OverviewLegal Overview Bakke U

California Prop. 209:

Texas v Hopwood (U.S.

Can uni

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Evidence from IndustryEvidence from Industry • Wage & Employment Discrimination still exist

• Audit studies find 5-20% differences in housing/joboffers favoring whites

• Affirm action achieves modest employment sharegains of 2-5%

• Affirm action has major effect on improving quality ofhuman resource practices—recruiting, selection,training, performance appraisal, etc.

• No conclusive evidence of efficiency losses (or gains)due to affirm action

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MIT’s Position: MIT’s Position: FormForm

• MIT’s quality of education is enhanced by the diversity ofits student body

• Suits to limit affirmative action threaten the ability of MITand other institutions of higher education to serve ournation and its future

• We must retain the freedom to consider race as one of many factors in admissions: Race conscious recruiting& selection processes are essential to achieving racialdiversity at highly selective colleges and universities

Summary Summary

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From the BriefFrom the Brief

“…MIT believes that a diverse student body is essential to its mission. serve the nation and prepare graduates to address challenges in a diverse world that is increasingly driven by science, engineering and technology—creative fields that require effective collaboration among individuals of many races, national origins and backgrounds.”

That mission is to

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Cosponsors of the BriefCosponsors of the Brief • MIT • Stanford • IBM • DuPont • National Academy of Sciences • National Academy of Engineering • National Action Council for Minorities in

Engineering

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CoCo--sponsors’ Statementsponsors’ Statement

“As great universities, leading corporations and national academies, we have a profound responsibility to provide for the future economic strength, health and security of this nation. path to building the diverse scientific and engineering workforce and leadership we need to do the job.”

Source: y 17, 2003 Press Release

The Court must not block our

Februar

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Affirmative Action @MITAffirmative Action @MIT——what it what it is Notis Not

• MIT does not use any quotas, targets, or mathematical formulas in admissions

• MIT does not lower its standards of admission for underrepresented minorities

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Affirmative Action @ MIT: Affirmative Action @ MIT: really Worksreally Works

• Extensive outreach to identify qualified minorities and toencourage them to apply

• Dual rating of all applicants without regard to race used toidentify pool of capable applicants:

– Academic Index: – Personal Index:

• Subjective judgments of staff based on each individual’s full range of accomplishments, experiences, and potential

• Race, national origin & ethnicity are considered as one ofmultiple factors because they are part of the social & culturalcontexts of an individual’s life experiences

How it How it

Grades, Class Rank, Scores leadership, extracurricular activities, experiences

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What’s at StakeWhat’s at Stake • Use of test scores, grades, and class rank would

reduce the pool of qualified minority applicants

• Compared to whites African-Americans are: – 50% less likely to graduate in top 10% of their class – 40% less likely to have an A average – Only 5% score above 600 on math or verbal SATs compared

to 24% (math) and 21% (verbal) of whites

• Bowen & Bok study estimates: standard would reduce number of black students at highly selective colleges to 2% or less

A race neutral

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A Systems’ View for Promoting A Systems’ View for Promoting Diversity on CampusDiversity on Campus

• Active outreach to identify qualified minorities and get them toapply

• Considering race as one factor among others in choosingamong qualified applicants

• Active efforts to get those admitted to accept

• Special efforts to help minorities and others to succeed at MIT

• Active efforts to create a supportive environment and to provideopportunities for all community members to interact, to learn from our diversity, and to develop the skills and capabilitiesneeded to be effective participants and leaders in industry andsociety

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The Problem & TaskThe Problem & Task

Affirmative Action: to Prepare the Campus Community for the Supreme Court Case to be Heard this Spring and Announced this Summer?

Your Task: from key stakeholders

What Should MIT do NOW

Design a Strategy and get Buy-in

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ProcessProcess

• Brainstorm Stakeholders & Interests (full group)

• Small groups: Divide up the Stakeholders

• Objective:

• Role Play:

Design a Strategy in Small Groups—

Get Buy In and Active Support for Your Plan

Fishbowl Exercise

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The Fishbowl (1): The Fishbowl (1): the MIT Culturethe MIT Culture

• Approach each Stakeholder—

• Freeze at any counter-cultural tactic

Change within Change within