Richard L. Daft - Management. 9th ed., 2010

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Learning Outcomes

Chapter Outline

After studying this chapter, you should be able to:

1. Understand the pervasive demographic changes occurring in the domestic

and global mar

ketplace and how corporations are responding.

2. Understand how the deﬁ

nition of diversity has grown to recognize a

broad spectrum of differences among employees, and appreciate the

dividends of a diverse workforce.

3. Recognize the complex attitudes, opinions, and issues that employees

bring to the wor

kplace, including prejudice, discrimination, stereotypes,

and ethnocentrism.

4. Recognize the factors that affect women’s opportunities, including the

glass ceiling, the opt-out tr

end, and the female advantage.

5. Explain the ﬁ

ve steps in developing cultural competence in the

workplace.

6. Describe how diversity initiatives and training programs help create a

climat

e that values diversity.

7. Understand how multicultural teams and employee network groups help

ganizations respond to the rapidly changing and complex workplace.

Do You Know Your Biases?

The Changing W

orkplace

Diversity in the United States

Diver

sity on a Global Scale

Managing Diversity

What Is Diversity?

Dividends of W

orkplace Diversity

Factors Shaping Personal Bias

Prejudice, Discrimination, and Stereotypes

Ethnocentrism

Factors Affecting Women’s Careers

Glass Ceiling

Opt-Out T

rend

The Female Advantage

New Manager Self-Test: Are You Tuned

Into Gender Dif

ference?

Cultural Competence

Diversity Initiatives and Programs

Changing Structures and Policies

Expanding Recruitment Ef

forts

Establishing Mentor Relationships

Accommodating Special Needs

Providing Diversity Skills Training

Increasing Awareness of Sexual Harassment

New Diversity Initiatives

Multicultural Teams

Employee Networ

k Groups

341

Managing Diversity

Controlling

Planning

Environment

Organizing

Leading

Introduction

DO YOU KNOW YOUR BIASES?

As a new manager, your day-to-day behavior will send sig-

nals about your biases and values. Some personal biases

are active and well known to yourself and others. Other

biases are more subtle, and the following questions may

provide some hints about where you are biased and don’t

know it. Please answer whether each item is Mostly True

or Mostly False for you.

Mostly

True

Mostly

False

1. I prefer to be in work teams with

people who think like me.

2. I have avoided talking about cul-

ture differences with people I met

from different cultures because I

didn’t want to say the wrong thing.

3. My mind has jumped to a conclu-

sion without ﬁ rst hearing all sides

of a story.

4. The ﬁ rst thing I notice about peo-

ple is the physical characteristics

that make them different from

the norm.

5. Before I hire someone, I have

a picture in mind of what they

should look like.

6. I typically ignore movies, maga-

zines, and TV programs that are

targeted toward groups and val-

ues that are different from mine.

7. When someone makes a bigoted

remark or joke, I don’t confront

them about it.

8. I prefer to not discuss sensitive

topics such as race, age, gender,

sexuality, or religion at work.

9. There are people I like but would

feel uncomfortable inviting to be

with my family or close friends.

SCORING AND INTERPRETATION: Give yourself one

point for each item you marked as Mostly True. The ideal

score is zero, but few people reach the ideal. Each ques-

tion reﬂ ects an element of “passive bias,” which can cause

people different from you to feel ignored or disrespected

by you. Passive bias may be more insidious than active

discrimination because it excludes people from opportu-

nities for expression and interaction. If you scored 5 or

more, you should take a careful look at how you think

and act toward people different from yourself. The sooner

you learn to actively include diverse views and people, the

better new manager you will be.

Sweeping demographic changes in the U.S. population have transformed today’s

society, creating a cultural mosaic of diverse people. The nation’s minority popula-

tion, for example, is now 100.7 million, making about one in three U.S. residents a

minority. Roughly 32 million people speak Spanish at home, and nearly half of these

people say they don’t speak English very well, according to Census Bureau  gures.

These demographic shifts, among others, are prompting companies in the United

States and abroad to take notice because these trends open up new markets. To capi-

talize on those opportunities, organizations have recognized that their workplaces

need to re ect the diversity in the marketplace. “Our country’s consumer base is so

varied,” says Shelley Willingham-Hinton, president of the National Organization for

PART 4 ORGANIZING342

Diversity in Sales and Marketing. “I can’t think of how a company can succeed with-

out having that kind of diversity with their employees.”

Forward-thinking organizations agree and are taking steps to attract and retain a

workforce that re ects the cultural diversity of the population. They take seriously

the fact that there is a link between the diversity of the workforce and  nancial suc-

cess in the marketplace. To be successful, these organizations are hiring workers who

share the same cultural background as the customers they are trying to reach. Avon,

for example, turned around its inner-city markets by putting African-American and

Hispanic managers in charge of marketing to these populations.

Today’s organizations recognize that diversity is no longer just the right thing

to do; it is a business imperative and perhaps the single most important factor of

the twenty- rst century for organization performance.

Companies that ignore diver-

sity will have a hard time competing in a multicultural global environment. As Ted

Childs, director of diversity at IBM, put it, “Diversity is the bridge between the work-

place and the marketplace.”

The global corporations listed in Exhibit 12.1 have been

recognized as leaders in corporate diversity. They have made diversity a top priority

and have taken steps toward creating a corporate culture that values equality and

re ects today’s multicultural consumer base.

In this chapter, we explore why demographic changes in the U.S. and global

marketplace have prompted corporations to place high value on creating a diverse

workforce. The chapter considers the advantages of a diverse workforce and the chal-

lenges in managing one. We look at the myriad complex issues that face managers

and employees in a diverse workplace, including prejudice, stereotypes, discrimina-

tion, and ethnocentrism. Factors that speci cally affect women—the glass ceiling, the

opt-out trend, and the female advantage—are also considered. After a review of the

steps toward cultural competence, the chapter concludes by presenting an overview

of initiatives taken by corporations to create an environment that welcomes and val-

ues a broad spectrum of diversity among its employees.

THE CHANGING WORKPLACE

When Brenda Thomson, the director of diversity and leadership education at the Las

Vegas MGM Mirage, steps into one of the company’s hotel lobbies, she closes her eyes

and listens. “It’s amazing all the different languages I can hear just standing in the lob-

bies of any of our hotels,” she says. “Our guests come from all over the world, and it

really makes us realize the importance of re ecting that diversity in our workplace.”

The diversity Thomson sees in the lobbies of the MGM Mirage hotels is a small re ec-

tion of the cultural diversity seen in the larger domestic and global workplaces.

Allstate

Marriott International

American Express Merrill Lynch

Bank of America Pepsi Bottling Group

Bausch & Lomb Pricewaterhouse Coopers

Citigroup Procter & Gamble

Consolidated Edison Company of New York Starwood Resorts

Daimler Chrysler The Coca-Cola Company

Deloitte & Touche USA UPS

Eastman Kodak Verizon

Ernst & Young Wachovia

FedEx Wells Fargo

IBM Xerox

JP Morgan Chase

SOURCE: Susan Caminiti, “The Diversity Factor,” Fortune (October 29, 2007): 95–105.

EXHIBIT 12.1

Leaders in Corporate

Diversity

CHAPTER 12 MANAGING DIVERSITY 343

Organizing

Diversity in the United States

Today’s U.S. corporations re ect the country’s image as a melting pot, but with a dif-

ference. In the past, the United States was a place where people of different national

origins, ethnicities, races, and religions came together and blended to resemble one

another. Opportunities for advancement were limited to those workers who easily

 t into the mainstream of the larger culture. Some immigrants chose desperate mea-

sures to  t in, such as abandoning their native languages, changing their last names,

and sacri cing their own unique cultures. In essence, everyone in workplace organi-

zations was encouraged to share similar beliefs, values, and lifestyles despite differ-

ences in gender, race, and ethnicity.

Now organizations recognize that everyone is not the same and that the differences

people bring to the workplace are valuable.

Rather than expecting all employees to

adopt similar attitudes and values, managers are learning that these differences enable

their companies to compete globally and to tap into rich sources of new talent. Although

diversity in North America has been a reality for some time, genuine efforts to accept

and manage diverse people began only in recent years. Exhibit 12.2 lists some interest-

ing milestones in the history of corporate diversity.

Diversity in corporate America has become a key topic, in part because of the vast

changes occurring in today’s workplace and consumer base. The average worker

is older now, and many more women, people of color, and immigrants are seeking

job and advancement opportunities. The following statistics illustrate some of the

changes reshaping the workplace.

▪ Aging workforce. Baby boomers continue to affect the workplace as this massive

group of workers progresses through its life stages. A baby boomer turns 60 every

seven seconds, continuously bumping up the average age of the workforce.

In 1986, the median age of the U.S. labor force was 35.4 years. It increased to

40.8 years in 2006 and will increase to 42.1 years in 2016.

▪ Growth in Hispanic and Asian workers. The greatest increase in employment will

occur with Asians and Hispanics. In fact, the number of Hispanics in the work-

force will increase by 6 million between 2006 and 2016, with 27 million Hispanics

in the workforce by 2016.

Exhibit 12.3 on page 345 shows the growth in employ-

ment among different racial and ethnic groups in the United States.

▪ Minority purchasing power. Hispanics, African Americans, and Asian Americans

together represent $1.5 trillion in annual purchasing power.

▪ Growth in foreign-born population. During the 1990s, the foreign-born popula-

tion of the United States nearly doubled, and immigrants now number more than

37.5 million, meaning that almost one in eight people living in the United States

was born in another country, the highest percentage since the 1920s.

So far, the ability of organizations to manage diversity has not kept pace with these

demographic trends, thus creating a number of signi cant challenges for minority

workers and women. Progress for women and minorities in both pay and leadership

roles has stalled or regressed at many U.S. corporations, as re ected in these statis-

tics: 75 percent of 357 global senior executives report their companies have one or no

minorities among their top executives, and 56 percent say they have one or no women

among their top executives.

This inequality shapes perceptions about who can

assume leadership roles. And the pay gap between white men and every other group

still exists.

Corporations that truly value diversity will recognize pay inequality and

discrimination in the workplace and make progress toward eliminating them.

As a new manager, you will be challenged to create a workplace that is inclusive

and bias-free. You may have the courage to take an active stand against prejudice

and inappropriate, disrespectful behavior. But will you inadvertently exclude people

who are different from the mainstream? Refer back to your score on the opening

questionnaire concerning passive bias.

TakeaMoment

PART 4 ORGANIZING344

EXHIBIT 12.2

Some Milestones in the

History of Corporate

Diversity

1903

African American Maggie Lena Walker is the

ﬁ rst woman to charter and head a bank,

the Saint Luke Penny Savings Bank. Today,

it survives as the Consolidated Bank & Trust

Co., the oldest African American owned bank

in the United States.

1964

The University of Chicago Graduate School

of Business becomes the ﬁ rst top business

school to set up a scholarship program for

African Americans.

1986

Pepsi runs the ﬁ rst Spanish-language TV

commercial on a major network.

1992

Levi Strauss & Co. makes history by being the

ﬁ rst Fortune 500 company to offer full medi-

cal beneﬁ ts to domestic partners.

1999

When Carly Fiorina takes over as CEO of

Hewlett–Packard, she becomes the ﬁ rst woman

to head a Fortune 50 company. Andrea Jung

breaks ground for Asian American women

when she is named to the CEO’s job at Avon.

2004

Wales-born American Howard Stringer is

named Sony’s ﬁ rst non-Japanese CEO. Nancy

McKinstry becomes the ﬁ rst American to

head Dutch publisher Wolters Kluwer.

1951

Secretary and single mother Bette Nesmith

Graham invents and patents Liquid Paper. She

markets it herself after IBM refuses to buy it.

1970

Joseph L. Searles is the ﬁ rst African American

member of the New York Stock Exchange

1987

Clifton R. Wharton becomes the ﬁ rst

African American to head a Fortune

100 company when he takes the helm of

TIAA-CRE

1994

Rajat Kumar Gupta becomes the ﬁ rst

Indian-born head of a U.S. transglobal

corporation, McKinsey & Company.

2002

Stanley O’Neal is named CEO of Merrill

Lynch, the ﬁ rst African American to head a

major investment bank.

2006

PepsiCo appoints India-born Indra K. Nooyi

as its ﬁ rst female CEO.

SOURCE: “Spotlight on Diversity,”special advertising section, MBA Jungle (March–April 2003): 58–61.

CHAPTER 12 MANAGING DIVERSITY 345

Organizing

Diversity on a Global Scale

Implications of an increasingly diverse workforce are not limited to the United

States. For example, the aging of the population is a global phenomenon. In addi-

tion, for organizations operating globally, social and cultural differences may

create more dif culties and con icts than any other sources. For instance, U.S.

managers trying to transfer their diversity policies and practices to European divi-

sions haven’t considered the complex and social cultural systems in Europe. Even

the meaning of diversity presents problems. In many European languages, the

closest word implies separation rather than the inclusion sought by U.S. diversity

programs.

Foreign  rms doing business in the United States face similar challenges under-

standing and dealing with diversity issues. For example, Japanese leaders at Toyota

Motor Company seriously bungled the handling of a sexual harassment complaint

in the company’s North American division, leading to a lawsuit. When Sayaka

Kobayashi sent a letter to Dennis Cuneo, senior vice president of Toyota North America,

say ing she had endured months of romantic and sexual advances from her boss,

Cuneo told her he would discuss the issue with the boss, Hideaki Otaka. However,

Cuneo allegedly said that he didn’t want to offend the man (a cultural norm), so he

planned to say it was Kobayashi’s boyfriend who was upset about the overtures.

This chapter’s Manager’s Shoptalk lists some interesting tips for foreign managers

working in the United States to help them understand and relate to Americans. Do

you agree that these statements provide a good introduction to American culture for

a non-native?

National cultures are intangible, pervasive, and dif cult to comprehend. However,

it is imperative that managers in organizations learn to understand local cultures and

deal with them effectively.

Many companies have taken this challenge seriously

and have experienced growth in the global marketplace. For example, Honeywell

has a growing role in the global marketplace with 118,000 employees operating in

more than 100 countries. Today, 54 percent of its employees work outside the United

States. Honeywell made the global connection and incorporated diversity as part of

its global strategies and believes that diversity provides the energy to fuel its high-

performance culture and achieve sustainable competitive advantage.

The director

of diversity at Kraft General Foods concurs. “Being global means that our custom-

ers are diverse. Our stockholders are diverse. The population which is available to

us, our productivity, creativity, innovation, and people who supply us are diverse.

There is no way we can run a business effectively without a deep understanding and

accommodating all of these elements.”

EXHIBIT 12.3

Growth in Employment

from 2006 to 2016 by

Group

30%

Men

Women

Percent change 2006–2016

20%

40%

10%

White African-

American

Asian Hispanic

5.4

5.6

15.9

16.5

33.3

26.5

35.1

SOURCE: Bureau of Labor Statistics.

PART 4 ORGANIZING346

Although each person is different, individuals from

a speci c country typically share certain values and

attitudes. Managers planning to move to a foreign

country can learn about these broad value patterns to

help them adjust to working and living abroad. The

following characteristics are often used to help for-

eign managers understand what Americans are like.

1. Americans are informal. They tend to treat

everyone alike, even when individuals differ sig-

ni cantly in age or social status.

2. Americans are direct and decisive. To some for-

eigners, this behavior may seem abrupt or even

rude. Typically, Americans don’t “beat around

the bush,” which means they don’t talk around

things but get right to the point. They quickly

de ne a problem and decide on the course

of action they believe is most likely to get the

desired results.

3. Americans love facts. They value statistics, data,

and information in any form.

4. Americans are competitive. They like to keep

score, whether at work or play. Americans like

to win, and they don’t tolerate failure well. Some

foreigners might think Americans are aggressive or

overbearing. For example, Americans are not at all

shy about selling themselves. In fact, it’s expected.

5. Americans believe in work. For many, commit-

ment to work and career comes  rst. In general,

Americans rarely take time off, even if a family

member is ill. They don’t believe in long vaca-

tions—even corporation presidents often take

only two weeks, if that.

6. Americans are independent and individualistic.

They place a high value on freedom and believe

that people can control their own destinies.

7. Americans are questioners. They ask a lot of

questions, even of someone they have just met.

Some of these questions may seem pointless

(How ya’ doin’?) or personal (What kind of

work do you do?).

8. Americans dislike silence. They would rather

talk about the weather than deal with silence in

a conversation.

9. Americans value punctuality. They keep

appointment calendars and live according to

schedules and clocks.

10. Americans pay close attention to appearances.

They take note of designer clothing and good

grooming. They may in fact seem obsessed with

bathing, eliminating body odors, and wearing

clean clothes.

How many of these statements do you agree with? Dis-

cuss them with your friends and classmates, including

people from different countries and members of differ-

ent subcultural groups from the United States.

SOURCES: Winston Fletcher, “The American Way of Work,”

Management Today (August 1, 2005): 46; “What Are Americans

Like?” Exhibit 4-6 in Stephen P. Robbins and Mary Coulter,

Management, 8th ed. (Upper Saddle River, NJ: Pearson Pren-

tice Hall, 2005), as adapted from M. Ernest, ed., Predeparture

Orientation Handbook: For Foreign Students and Scholars

Planning to Study in the United States (Washington, DC:

U.S. Information Agency, Bureau of Cultural Affairs, 1984),

p. 103–105; Amanda Bennett, “American Culture Is Often

a Puzzle for Foreign Managers in the U.S.,” The Wall Street

Journal, February 12, 1986; “Don’t Think Our Way’s the Only

Way,” The Pryor Report (February 1988): 9; and B. Wattenberg,

“The Attitudes Behind American Exceptionalism,” U.S. News

and World Report (August 7, 1989): 25.

A GUIDE FOR EXPATRIATE MANAGERS IN AMERICA

Manager’sShoptalk

MANAGING DIVERSITY

Whether operating on a national or global scale, organizations recognize that their

consumer base is changing, and they cannot prosper and succeed without a diverse

workforce. Let’s  rst explore the expanding de nition of diversity and consider the

dividends of cultivating a diverse workforce.

What Is Diversity?

Diversity is de ned as all the ways in which people differ.

Diversity wasn’t always

de ned this broadly. Decades ago, many companies de ned diversity in terms of

race, gender, age, lifestyle, and disability. That focus helped create awareness, change

div

ersit

All

ays

hich emplo

ees differ.

CHAPTER 12 MANAGING DIVERSITY 347

Organizing

mind-sets, and create new opportunities

for many. Today, companies are embracing

a more inclusive de nition of diversity that

recognizes a spectrum of differences that

in uence how employees approach work,

interact with each other, derive satisfaction

from their work, and de ne who they are as

people in the workplace.

Exhibit 12.4 illustrates the difference

between the traditional model and the

inclusive model of diversity. The dimen-

sions of diversity shown in the traditional

model include inborn differences that are

immediately observable and include race,

gender, age, and physical ability. However,

the inclusive model of diversity includes

all of the ways in which employees dif-

fer, including aspects of diversity that can

be acquired or changed throughout one’s

lifetime. These dimensions may have less

impact than those included only in the

traditional model but nevertheless affect a

person’s self-de nition and worldview and the way the person is viewed by oth-

ers. For example, the inclusive model of diversity recognizes people with different

spiritual beliefs. As part of its diversity program, Target addresses issues of faith in

its Minneapolis store. Muslim cashiers who object to ringing up pork products due

to religious beliefs are allowed to wear gloves, shift to other positions, or transfer to

other stores.

Go to the ethical dilemma on pages 366–367 that pertains to accommodating

religious practices in the workplace.

TakeaMoment

Personality

Race

Gender

Lifestyle

Pay

level

Pay level

Disability

Age

Function

Diversity

Race

Gender

Competency

Income

Parent

InclusiveTraditional

Language

Work

style

Military

experience

Position

Nationality

Diversity/

Inclusion

EXHIBIT 12.4 Traditional vs. Inclusive Models of Diversity

SOURCE: Reproduced by permission. Anthony Oshiotse and Richard O’Leary, “Corning Creates an Inclusive Culture to Drive Technology Innovation and Performance,”

Wiley InterScience, Global Business and Organizational Excellence, 26 no. 3 (March/April 2007): 12.

Successful organizations seek a diverse and inclusive

workforce. Indra Nooyi was named CEO of PepsiCo in 2006 after twelve years with

the food and beverage giant, spending most of those years leading its global strategy.

Both Fortune and Forbes magazines named the Indian-born executive one of the most

powerful women in America. “I am not your normal, nondiverse CEO. I am everything

that this company took forth in diversity and inclusion, and it has all come together

with me,” says Nooyi.

PART 4 ORGANIZING348

With 35 percent of its domestic workforce

made up of African-Americans, Hispanics,

Asian Americans, and other minorities, UPS

is widely recognized for its commitment

to diversity. For the past seven consecu-

tive years, a Fortune magazine survey has

ranked UPS as one of the “50 Best Compa-

nies for Minorities.” In addition, minorities

hold 85 senior management positions, with

African Americans  lling 52 of those posts,

and  ve of the company’s board of direc-

tors are African American.

Positive sta-

tistics like this help UPS attract and retain

a diverse workforce. UPS believes that the

diversity re ected in its workforce is the

key to its effectiveness.

Yet, a diverse workforce poses unique

challenges for managers at UPS and else-

where. Employees with different back-

grounds bring different opinions and ideas.

Con ict, anxiety, and misunderstandings

may increase. Embracing these differences

and using them to improve company per-

formance can be challenging. Managing

diversity, a key management skill in today’s

global economy, means creating a climate in

which the potential advantages of diversity

for organizational or group performance

are maximized while the potential disad-

vantages are minimized.

Dividends of Workplace Diversity

Corporations that build strong, diverse organizations reap numerous dividends as

described below and shown in Exhibit 12.5

. The dividends of diversity include the

following:

▪ Better use of employee talent. Companies with the best talent are the ones with

the best competitive advantage. But attracting a diverse workforce is not enough;

companies must also provide career opportunities and advancement for its minor-

ity and women employees to retain them.

▪ Increased understanding of the marketplace. The consumer market is becoming

increasingly diverse. A diverse workforce is better able to anticipate and respond

to changing consumer needs. Ford Motor Company realized it could reach its

business objectives only if it created a workforce that re ected the multicultural

face of the country. So it assembled a workforce made up of 25 percent minorities

Many people are opting to stay in the workforce long

past retirement age, giving managers opportunities to enhance workforce diversity

by incorporating older employees. When CPI Aerostructures in Edgewood, New York,

earned new contracts to provide spare parts to the U.S. government, CEO Edward

J. Fred needed skilled mechanics ready to work. He was ﬂ ooded with inquiries from

retired mechanics, many well past the age of 65. Fred hired two seniors as part-time

workers, and two as full-time employees. The decision gave CPI ﬂ exibility in scheduling,

experienced workers to serve as teachers to younger colleagues, and a workplace

culture that increased pride in the work for employees of all ages.

• Better use of employee talent

• Increased understanding of the marketplace

• Enhanced breadth of understanding in leadership positions

• Increased quality of team problem solving

• Reduced costs associated with high turnover, absenteeism, and lawsuits

SOURCE: Gail Robinson and Kathleen Dechant, “Building a Business Case for Diversity,” Academy of Management Executive

11, no. 3 (1997): 22.

EXHIBIT 12.5

Dividends of Workplace

Diversity

man

ing

iversit

atin

a c

imate in w

e potentia

vantages o

iversity

or organizationa

group per

ormance are

aximized while the

otential

dis

advanta

s are minimized

CHAPTER 12 MANAGING DIVERSITY 349

Organizing

(18.4 percent are African American) to

foster a culture of inclusion, winning it a

spot on Black Enterprise’s “40 Best Com-

panies for Diversity.”

▪ Enhanced breadth of understanding in

leadership positions. Homogeneous top

management teams tend to be myopic

in their perspectives. According to Niall

FitzGerald of Unilever, “It is important

for any business operating in an increas-

ingly complex and rapidly changing

environment to deploy a broad range

of talents. That provides a breadth of

understanding of the world and envi-

ronment and a fusion of the very best

values and different perspectives which

make up that world.”

▪ Increased quality of team problem

solving. Teams with diverse back-

grounds bring different perspectives

to a discussion that result in more cre-

ative ideas and solutions.

Although

85 percent of Ernst & Young’s senior

leadership is still male, the company

is taking steps to create a more diverse leadership team because it’s better for

business. “We know you get better solutions when you put a diverse team at the

table. People come from different backgrounds and they have different frames of

reference. When you put these people together, you get the best solution for our

clients,” says Billie Williamson, director of  exibility and gender equity strategy

at Ernst & Young.

▪ Reduced costs associated with high turnover, absenteeism, and lawsuits. Compa-

nies that foster a diverse workforce reduce turnover, absenteeism, and the risk of

lawsuits. Because family responsibilities contribute to turnover and absenteeism,

many companies now offer child-care and elder-care bene ts,  exible work arrange-

ments, telecommuting, and part-time employment to accommodate employee

responsibilities at home. Discrimination lawsuits are also a costly side effect of a

discriminatory work environment. A racial harassment suit against Lockheed Mar-

tin Corporation cost the company $2.5 million, the largest individual racial-discrim-

ination payment obtained by the Equal Employment Opportunity Commission.

These bene ts of diversity are important for all organizations, but they are critical

for agencies like the Federal Bureau of Investigation that are striving to keep com-

munities safe in today’s complex multicultural world. Not so long ago, if you were a

woman or member of a minority group, you didn’t stand a chance of becoming an FBI

agent. Today, however, the agency’s goal is to re ect the diversity of U.S. society.

How does the FBI gain credibility and obtain the information it needs to investigate and solve

crimes? One way is by looking and thinking like the people in the communities where it seeks

information. Each of the FBI’s 56 ﬁ eld ofﬁ ces gets a report card on how well they’ve done in

terms of making their ofﬁ ces reﬂ ective of the community. Each ofﬁ ce is responsible for bring-

ing minorities and women on board and providing them with advancement opportunities.

In addition, the FBI’s national recruitment ofﬁ ce was launched speciﬁ cally to develop

programs for recruiting women and minorities. One innovative initiative was the EdVenture

Partners Collegiate Marketing Program, which worked with two historically African-Ameri-

can universities. The program gave students college credit and funding to devise and imple-

ment a local marketing plan for the FBI. As a result of the program, the agency received 360

minority applications. “In many cases, the students’ perceptions about the FBI were totally

Federal Bureau of

Investigation (FBI)

Innovative Way

With roughly half of its 66,000 employees working

outside the United States, it’s not surprising that American Express is an acknowledged

leader in managing global diversity. These East Indian staff members are shown in

the company’s Delhi ofﬁ ces. American Express developed a training module, “Valuing

Diversity and Practicing Inclusion,” for managers throughout the world, but executives

let local facilitators customize the tool to ﬁ t their cultures. “We always allow them a

period of time to be able to adapt, modify, and customize . . . so that it resonates well

with employees,” explains Henry Hernandez, vice president and chief diversity ofﬁ cer.