Why would companies consider implementing diversity programs?Michael is a new manager for a Fortune 500 firm

 What lessons do the IBM diversity management task forces offer to other firms?

Answers will vary but some general thoughts include: IBM’s success with diversity management suggests that other firms should consider implementing similar programs. IBM has tripled the number of female executives, doubled minority executives and increased those categorized as lesbian, bisexual, gay and transgender seven-fold. IBM has seen this program to be a competitive advantage. Using the information from the task forces, IBM introduced programs to enhance networking activities for women and Asians, and helped retain African Americans.

164. Why would companies consider implementing diversity programs?

There are a number of different reasons for such programming, but some of the benefits of diversity initiatives include:

Higher creativity in decision making: The more diverse a group, the more options a group considers, which leads to higher-quality decisions. This increased quality could lead to more creative decisions that could positively impact the company’s bottom line.

Better understanding and service to customers: The more a firm understands about the breadth of its customer base, the more opportunity is offered for growing a market or tapping a new market segment.

More satisfied workforce: When employees feel fairly treated, they are more satisfied. More satisfied workers turnover less.

Higher stock prices: Companies with a more diverse workforce find that they have a higher stock price in the days following the announcement of diversity initiatives.

Lower litigation costs: If a firm is being fair to its employees, there is no need for employees to file complaints against the firm for discriminating against them with regard to federal law. Obviously a lack of complaints saves substantial litigation fees.

Higher company performance: Those firms managing diversity effectively tend to perform better.

165. Michael is a new manager for a Fortune 500 firm. He is preparing for his first assignment, which is to complete a diversity audit of his firm. What are some of the areas he should consider for assessment?

A number of demographic groups can be investigated in the firm. However, some of the major groups include: gender (what is the number of women in executive or higher level management positions, are there pay differences between women and other groups in the firm); race (again what is the number of minorities in upper management positions in the firm and what is their pay rate); age (how are older workers treated, are they stereotyped); religious (what accommodations are made for religious beliefs); disabled (what accommodations need to be made) and sexual orientation (are same sex benefits offered).

166. You are being interviewed for a position in a financial services firm. The last three questions that the interviewer asked of you have been illegal questions. What can you do?

Some options:

Continue to refuse to answer and maybe even point out the illegality of the question.

Answer shortly and then change the subject.

Answer the intent of the question, not the actual question.

Walk away from the interview.

167. You are an organizational behavior consultant who has been brought into a firm to present some best practices with regard to managing demographic diversity. What are some of those best practices which you could present in a seminar?

Build a culture that respects diversity. All levels of the firm must support diversity.

Make managers accountable for diversity.

Institute diversity training programs.

Review recruitment practices and ensure the firm is targeting a diverse candidate pool.

Consider affirmative action programs to enhance diversity.

168. You are an advisor for international business students. You are meeting with freshmen business students this afternoon. What are some recommendations you could make to these students to prepare them for global careers?

Answers will vary but some general responses are:

Learn a language.

Immerse yourself in different cultures.

Develop an openness to different experiences.

Develop a strong social support network.

Develop a sense of humor.

Plan your return from a foreign assignment to avoid reverse culture shock.

169. You are an organizational behavior consultant who has been hired to present a training seminar to managers in a Fortune 500 firm about suggestions for managing cultural diversity in the firm. What are some of the topics you will consider presenting during the seminar?

Help employees build cultural intelligence; companies are very diverse now and the more cultures you can understand the better prepared your firm will be.

Avoid ethnocentrism.

Listen to locals.

Recognize that culture changes.

Do not always assume that culture is the problem.