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• Diversity Mgt Defined
• Prevalence and Effects of Diversity Mgt
• Issues in Research on Diversity Mgt
Diversity Mgt: Time for a new approachIvancevich & Gilbert, 2000
• Using demographic necessity as a business case– Assumes access will lead to advancement– Focuses on visible minority and females
• Broad defn is to recruit, hire, retain, reward & promote a heterogeneous (vms, females, disabled, gays?, whites) workforce
• Moral/Ideology based business cases will not survive in times of economic hardship
Definitions of Diversity Mgt
• Perceived effect vs. Real Effects vs Claims made by popular books
Does Diversity Mgt have an effect?
• 92% believed diversity mgt policies affected profitability Towers Perrin 92
• Perceived success of diversity training predicted by Rynes & Rosen, 95
• Top mgt support for diversity, mandatory attendance, long-term eval of training results, rewards to mgrs for increasing diversity, inclusionary defn of diversity
Not in article
Perceived effects of Diversity Mgt
• Among top 50 companies, 72% had diversity progs AT Kearney, 1995
• 8% were developing progs, 8 % had scattered progs
• Predictors of the use of diversity training • Top mgt support for diversity, Top mgt’s positive
beliefs about diversity, high strategic priority to diversity compared to other objectives, presence of diversity mgt officer, other diversity supportive policies & Org size Rynes& Rosen, 95
Prevalence of Diversity Mgt
Not in article
• Case examples– Xerox– IBM– 16 organizations case study Morrison, 92
• 13 emphasized recruitment
• 12 used diversity related criteria for perf evaluation– 6 linked accomplishment of diversity goals to special bonuses
or merit pay increases (cf Stephan & Stephan)
• 11 had most admired corporation ranking in Fortune
• 3 had awards for TQM
Prevalence of Diversity Mgt
• Increased perceptions about managerial concern for diversity Ellis & Sonnenfeld
• Decreased perceptions that vms received too much attention Ellis & Sonnenfeld
Effects of Diversity Training
• Improved org culture, fairer treatment of VMs & women in large corporation Jew 1995
• Increased understanding of diverse customers, increased creativity, increased commitment, better retention & attendance in 55 companies in CA Tsui & Porter
Effects of Diversity Mgt
• Increased cooperation in ethnically diverse groups Cox et al
• VMs have more positive perceptions of career advancement programs (Int’l Survey Research Company)
• Identity-conscious HR structures (i.e., recruitment,
hiring goals, promotion vs. termination ratios, grievance rates) were positively associated with positive employment status outcomes for vms & women Konrad & Linehan
Effects of Diversity Mgt
• Stock price changes were – NEGATIVE after firms publicly announced
settlements in discrimination lawsuits – POSITIVE for those firms winning awards for
Equal employment opportunity
Effects of Diversity Management(Wright et al)
• Those Fortune 500 firms with the best record of promoting women to senior positions were more profitable (ROA 18% & ROI 69% higher than the median in industry) Adler
• Firms with 2 or more women on boards were more likely to be industry leaders in revenues & profits 6 yrs later Conference Board
Effects of Diversity Mgt
Not in article
• Companies with the highest representation of women in top mgt teams had better financial performance (ROE 35.1% & TRS 34% higher) than those with the lowest representation Catalyst
Not in article
Effects of Diversity Mgt
• Cf Issues in Diversity Training (Stephan & Stephan)
• Demographic vs. Attitudinal defn of diversity1. Over time, effect of demographic diversity
weakened whereas that of attitudinal diversity strengthened Harrison et al
• Inter-group interactions became less stereotypical as members learned about one another
Issues in Research on Diversity Mgt
Ethnicity Collectivism Perceptions of group’s features
Carpenter & Radhakrishnan2.
Not in article
• Lack of research could be due to – fewer number of researchers in the area– Poor quality research– Bias of reviewers & editors– Encouragement of doctoral students– Gaining access to organizations
Issues in Research on Diversity Mgt
• Better research based on • Improved research designs, • Better theories • More diverse samples• Time-based studies• Better statistical analyses (Radhakrishnan, in progress)
Issues in Research on Diversity Mgt
• Better Diversity training research (cf Stephan & Stephan chp)
– Identify important program based criteria – Assess changes in criteria– Determine whether changes in criteria
• Are due to diversity training
• Will replicate with diff employees of same firm
• Will replicate with different firm (generalization)
– Assess Affective, cognitive, skill based outcomes– Use utility estimation procedures to estimate
economic benefits
Issues in Research on Diversity Mgt
• Diversity Mgt Defined
• Prevalence and Effects of Diversity Mgt
• Issues in Research on Diversity Mgt
Diversity Mgt: Time for a new approachIvancevich & Gilbert, 2000
