1. Week 12: Managing in a Diverse
and Changing World
Instructor: Jean-Pierre Mulumba Ph. D.
Section VI: Managing Organizational
Change and Diversity
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2. Managing in a Diverse and Changing World
Learning Objectives
 In this section, students will
Examine strategies for building a more inclusive
workplace.
Explore the challenges of
o Effective corporate leadership,
o Employee resource groups,
o Diversity training, and
o Corporate social responsibility initiatives.
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3. Managing in a Diverse and Changing World
Learning Objectives
 In this section, students will
Understand the need for more flexible work
programs for
o Parents,
o Caregivers, and
o Older workers.
Evaluate the value of diversity award programs.
Assess a real organization in terms of
o Its diversity policies and
o Practices.
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4. Managing in a Diverse and Changing World
Introduction
This Section intends to close the change loop by
examining
o How to effectively manage diversity and
o Evaluate their progress.
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5. Managing in a Diverse and Changing World
Introduction
Current readings on
o Corporate diversity leadership initiatives
o Effective utilization of employee resource groups
o Well-designed community philanthropy programs
o Need for a more flexible workplace
o Analysis of diversity training frameworks
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6. Managing in a Diverse and Changing World
Introduction
Examination of diversity awards criteria actually
audit of an existing business
Analysis of an integrative case
o Air Force Academy
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7. Employee Resource Groups, and Social
Responsibility:
What Organizations Can Do to Manage Diversity
By Carol P. Harvey
Assumption College
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8. Managing in a Diverse and Changing World
Outcomes
Examine corporate diversity leadership
Consider the role of employee resource groups as
organizational assets
Understand the importance of supplier diversity
programs
Analyze corporate social responsibility and
philanthropy initiatives
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9. Managing in a Diverse and Changing World
Introduction
Well-managed diversity programs benefit
o an organization in terms of the business case for
diversity
o Stakeholders in terms of
 the involvement of employees
 Suppliers
 The community.
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10. Managing in a Diverse and Changing World
Introduction
The Office of Civil Rights requirements for
effective diversity leadership:
o Making diversity visible
o Being specific about what needs to be done,
o Requiring evaluation for results
o Providing constant reinforcement
o Making change intentional
 direction needs to come from the top of an organization
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11. Managing in a Diverse and Changing World
Governance and Diversity: Corporate
Boards and Chief Diversity Officers
Once diversity adopted, two ways to strengthen
governance
o Have diversity on the Board of Directors
o Appoint a Chief Diversity Officer (CDO)
 for building
 managing
 maintaining corporate diversity initiatives
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12. Managing in a Diverse and Changing World
Board Leadership
Corporate boards expected to provide external
strategic advice
Diverse directors improve decision making by
o Minimizing groupthink
o Challenging the status quo
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13. Managing in a Diverse and Changing World
Board Leadership
Statistics on board diversity (gender and race/
ethnicity)
o 17% women (51% of the United States population)
o 10% Blacks ( 14% of the U. S. population)
o 4% Hispanics ( 15% of the U. S. population)
o 2% Asians (5% of the U. S. population)
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14. Managing in a Diverse and Changing World
Board Leadership
Only 17 of the Fortune 100 companies have 40%
diverse directors
Reasons for that:
o Diverse directors may be harder to find.
 Lack access to networks and the social capital.
 Board members tend to be associated with people like
themselves.
o Corporate boards require specific skills harder to find
in the diversity.
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15. Managing in a Diverse and Changing World
Board Leadership
An organization may not benefit from diversity.
o Diverse directors may be reluctant to speak freely.
o Diversity brings a range of differences in
communication styles
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16. Managing in a Diverse and Changing World
Chief Diversity Officers (CDO)
The internal management of diversity is now away
from Human Resources
o Many organizations create a new position: chief
diversity officer
The primary responsibilities of the CDO
o provide strategic leadership
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17. Managing in a Diverse and Changing World
Affinity Groups/Employee Resource
Groups (ERGs)
In theory, a diverse workforce is an asset to an
organization
o Multicultural marketing
o Creativity
o Innovative decision-making.
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18. Managing in a Diverse and Changing World
Affinity Groups/Employee Resource
Groups (ERGs)
However, membership in a diversity may lead to
o Feelings of isolation
o Miscommunication
o Lack of mentoring
 Minimizing the advantages of a diverse workforce.
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19. Managing in a Diverse and Changing World
Affinity Groups/Employee Resource
Groups (ERGs)
ERGs provides organizational communities for
diverse individuals
o Focus on socialization and mentoring
o ERGs utilizes employees as a business resource
 Product development
 Recruitment of diverse employees
 Marketing advice for diverse consumers
 Can be a competitive advantage in global and diverse markets
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20. Managing in a Diverse and Changing World
Affinity Groups/Employee Resource
Groups (ERGs)
Originated in the 1960’s at Xerox
o Mentoring resource for newer minority employees
o Network for the recruitment of additional minorities.
o Benefit for employees and management
Over time they became more inclusive for any
memberships.
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21. Managing in a Diverse and Changing World
EXHIBIT 1 Individual & Organizational Benefits of
Affinity & Employee Resources Groups
Employee Benefits
Organizational Benefits
Opportunity to be mentored
Improved communication with diverse
consumer markets
Safe place to discuss diversity issues
Assistance with recruiting diverse
employees
Outreach to diverse communities
Networking opportunities
Professional development
Increase feeling of inclusion
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Product development for diverse
markets
Increase global business opportunities

22. Managing in a Diverse and Changing World
Affinity Groups/Employee Resource Groups
(ERGs)
ERGs increases employee satisfaction and
motivation.
Require guidelines and open membership
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23. Managing in a Diverse and Changing World
Supplier Diversity Programs
Buying from minority and women owned
businesses
Procurement programs driven by federal
contracts need to nurture their development
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24. Managing in a Diverse and Changing World
Supplier Diversity Programs
Supplier diversity programs can be divided into
two levels:
o Tier I suppliers are direct contractors.
o Tier II supplier of goods and services for the prime
suppliers
 small
 Minority
 Non-ethnic women
 Veteran or service-disabled veteran-owned businesses
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25. Managing in a Diverse and Changing World
Supplier Diversity Programs
These programs add mutual benefits to the
purchasing organizations and to the suppliers
They provide
o Business development opportunities
o Educational/ training opportunities
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26. Managing in a Diverse and Changing World
Supplier Diversity Programs
These programs add mutual benefits to the
purchasing organizations and to the suppliers
They provide
o Business development opportunities
o Educational/ training opportunities
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27. Managing in a Diverse and Changing World
Corporate Social Responsibility &
Philanthropy
Most of donations come from corporate
foundations
The largest foundations have their roots in
business
o Bill & Melinda Gates Foundation ($38.9 Billion)
o Ford Foundation ($11 billion)
o J. Paul Getty Trust ($10.8 billion)
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28. Managing in a Diverse and Changing World
Corporate Social Responsibility &
Philanthropy
Many charitable giving programs target diverse
populations
Many others sponsor employees paid time to
volunteer
o In their communities to tutor and mentor youth
o Restore homes for the elderly
o Raise money for AIDS charities
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29. Managing in a Diverse and Changing World
Corporate Social Responsibility &
Philanthropy
Corporations link their contributions to social
causes related to their
o Core values
o Missions and stakeholders.
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30. Managing in a Diverse and Changing World
Corporate Social Responsibility &
Philanthropy
Corporate philanthropy benefits both internal and
external stakeholders,
It also provides advantages to the organization.
o Tax breaks
o Positive consumers’ opinions
o Increased recruitment of staff
o Positive image of companies within diverse markets
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31. Managing in a Diverse and Changing World
Outcomes
Examine corporate diversity leadership
Consider the role of employee resource groups as
organizational assets
Understand the importance of supplier diversity
programs
Analyze corporate social responsibility and
philanthropy initiatives
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