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

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PART 4 ORGANIZING350

changed,” says Gwen Hubbard, acting chief of the national recruitment ofﬁ

ce. “Initially, we

were not viewed as an employer of choice by the diverse student populations.” The EdVenture

Partners program is being expanded to eight colleges and universities. Another initiative is a

minority summer intern program, which started with 21 full-time student interns and is being

expanded to at least 40.

These programs on the national level, along with emphasis in the ﬁ eld ofﬁ ces on reﬂ ect-

ing the local communities, ensure that the Federal Bureau of Investigation recruits diverse

candidates. Today, the FBI has thousands of female and minority agents. Top leaders are also

focusing on ways to make sure those people have full opportunity to move up the ranks so

that there is diversity at leadership levels as well.

FACTORS SHAPING PERSONAL BIAS

To reap the bene ts of diversity described above, organizations are seeking managers

who will serve as catalysts in the workplace to reduce barriers and eliminate obsta-

cles for disadvantaged people. Managing diversity, therefore, has become a sought

after management skill. To successfully manage a diverse workgroup and create a

positive, productive environment for all employees, managers need to start with an

understanding of the complex attitudes, opinions, and issues that already exist in the

workplace or that employees bring into the workplace. These include several factors

that shape personal bias: prejudice, discrimination, stereotypes, and ethnocentrism.

Prejudice, Discrimination, and Stereotypes

Prejudice is the tendency to view people who are different as being de cient. If some-

one acts out their prejudicial attitudes toward people who are the targets of their prej-

udice, discrimination has occurred.

Paying a woman less than a man for the same

work is gender discrimination. Mistreating people because they have a different eth-

nicity is ethnic discrimination. Although blatant discrimination is not as widespread

as in the past, bias in the workplace often shows up in subtle ways: a lack of choice

assignments, the disregard by a subordinate of a minority manager’s directions, or

the ignoring of comments made by women and minorities at meetings. A survey by

Korn Ferry International found that 59 percent of minority managers surveyed had

observed a racially motivated double standard in the delegation of assignments.

Their perceptions are supported by a study that showed minority managers spend

more time in the “bullpen” waiting for their chance and then have to prove them-

selves over and over again with each new assignment. Minority employees typically

feel that they have to put in longer hours and extra effort to achieve the same status as

their white colleagues. “It’s not enough to be as good as the next person,” says Bruce

Gordon, president of Bell Atlantic’s enterprise group. “We have to be better.”

A number of federal and state laws outlaw different types of discrimination, as

discussed in Chapter 11. These include the following:

▪ Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the

basis of race, color, religion, national origin, and sex.

▪ The Equal Pay Act of 1963, which prohibits employers from paying different

wages to men and women who perform essentially the same work under similar

working conditions.

▪ The Americans with Disabilities Act, which prohibits discrimination against per-

sons with disabilities.

▪ The Age Discrimination in Employment Act, which prohibits discrimination

against individuals who are age 40 or above.

A major component of prejudice is stereotyping, a rigid, exaggerated, irratio-

nal belief associated with a particular group of people.

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CHAPTER 12 MANAGING DIVERSITY 351

Organizing

diversity, managers need to eliminate harmful stereotypes from their thinking, shed-

ding any biases that negatively affect the workplace. Managers can learn to value dif-

ferences, which means they recognize cultural differences and see the differences with

an appreciative attitude. To facilitate this attitude, managers can learn about cultural

patterns and typical beliefs of groups to help understand why people act the way

they do. It helps to understand the difference between these two ways of thinking,

most notably that stereotyping is a barrier to diversity but valuing cultural differ-

ences facilitates diversity. These two different ways of thinking are described below

and illustrated in Exhibit 12.6.

▪ Stereotypes are often based on folklore, media portrayals, and other unreliable

sources of information. In contrast, legitimate cultural differences are backed up

by systematic research of real differences.

▪ Stereotypes contain negative connotations. On the other hand, managers who

value diversity view differences as potentially positive or neutral. For example, the

observation that Asian males are typically less aggressive does not imply they are

inferior or superior to white males—it simply means that there is a difference.

▪ Stereotypes assume that all members of a group have the same characteristics.

Managers who value diversity recognize that individuals within a group of peo-

ple may or may not share the same characteristics of the group.

What judgmental beliefs or attitudes do you have that inﬂ uence your feelings about

people who belong to certain groups? To successfully manage diversity, you will need

to shed stereotypes while still appreciating the differences among people.

Not only should managers rid themselves of stereotypical thinking, they should

also recognize the stereotype threat that may jeopardize the performance of at-risk

employees. Stereotype threat describes the psychological experience of a person

who, usually engaged in a task, is aware of a stereotype about his or her identity

group suggesting that he or she will not perform well on that task.

Suppose you

are a member of a minority group presenting complicated market research results to

your management team and are anxious about making a good impression. Assume

that some members of your audience have a negative stereotype about your identity

group. As you ponder this, your anxiety skyrockets and your con dence is shaken.

Understandably, your presentation suffers because you are distracted by worries and

self-doubt as you invest energy in overcoming the stereotype. The feelings you are

experiencing are called stereotype threat.

People most affected by stereotype threat are those we consider as disadvantaged

in the workplace due to negative stereotypes—racial and ethnic minorities, members

of lower socioeconomic classes, women, older people, gay and bisexual men, and

people with disabilities. Although anxiety about performing a task may be normal,

TakeaMoment

Stereotyping Valuing Cultural Differences

Is based on false assumptions, anecdotal evidence, or impressions without

any direct experience with a group

Views based on cultural differences veriﬁ ed by scientiﬁ c

research methods

Assigns negative traits to members of a group Views cultural differences as positive or neutral

Assumes that all members of a group have the same characteristics Does not assume that all individuals within a group have the

same characteristics

Example: Suzuko Akoi is an Asian; therefore, she is not aggressive by

white, male standards.

Example: As a group, Asians tend to be less aggressive than

white, male Americans.

SOURCE: Adapted from Taylor Cox, Jr., and Ruby L. Beale, Developing Competency to Manage Diversity: Readings, Cases, and Activities (San Francisco: Berrett-Koehler

Publishers, Inc.).

EXHIBIT 12.6 Difference Between Stereotyping and Valuing Cultural Differences

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PART 4 ORGANIZING352

people with stereotype threat feel an extra scrutiny and worry that their failure will

re ect not only on themselves as individuals but on the larger group to which they

belong. As Beyoncé Knowles said, “It’s like you have something to prove, and you

don’t want to mess it up and be a negative re ection on black women.”

Ethnocentrism

Valuing diversity by recognizing, welcoming, and cultivating differences among

people so they can develop their unique talents and be effective organizational mem-

bers is dif cult to achieve. Ethnocentrism can be a roadblock to this type of thinking.

Ethnocentrism is the belief that one’s own group and subculture are inherently supe-

rior to other groups and cultures. Ethnocentrism makes it dif cult to value diversity.

Viewing one’s own culture as the best culture is a natural tendency among most

people. Moreover, the business world still tends to re ect the values, behaviors, and

assumptions based on the experiences of a rather homogeneous, white, middle-class,

male workforce. Indeed, most theories of management presume that workers share

similar values, beliefs, motivations, and attitudes about work and life in general.

These theories presume one set of behaviors best helps an organization to be produc-

tive and effective and therefore should be adopted by all employees.

Ethnocentric viewpoints and a standard set of cultural practices produce a

monoculture, a culture that accepts only one way of doing things and one set of val-

ues and beliefs, which can cause problems for minority employees. People of color,

women, gay people, the disabled, the elderly, and other diverse employees may feel

undue pressure to conform, may be victims of stereotyping attitudes, and may be

presumed de cient because they are different. White, heterosexual men, many of

whom do not  t the notion of the “ideal” employee, may also feel uncomfortable

with the monoculture and resent stereotypes that label white males as racists and

sexists. Valuing diversity means ensuring that all people are given equal opportuni-

ties in the workplace.

The goal for organizations seeking cultural diversity is pluralism rather than a

monoculture and ethnorelativism rather than ethnocentrism. Ethnorelativism is the

belief that groups and subcultures are inherently equal. Pluralism means that an

organization accommodates several subcultures. Movement toward pluralism seeks

to fully integrate into the organization the employees who otherwise would feel iso-

lated and ignored. To promote pluralism in its Mountain View corporate headquar-

ters, chefs at Google’s corporate cafeteria ensure that its menu accommodates the

different tastes of its ethnically diverse workforce.

Employees in Google’s corporate headquarters come from all corners of the world, but they

feel a little closer to home when they see familiar foods from their homeland on the cafeteria

menu. With a goal of satisfying a diverse, ethnically varied palate, Google’s ﬁ rst food guru

and chef Charlie Ayers designed menus that reﬂ ected his eclectic tastes yet also met the

needs of an increasingly diverse workforce. He created his own dishes, searched all types of

restaurants for new recipes, and often got some of his best ideas from foreign-born employ-

ees. For example, a Filipino accountant offered a recipe for chicken adobo, a popular dish

from her native country. Scattered around the Googleplex are cafes specializing in Southwest-

ern, Italian, California-Mediterranean, and vegetarian cuisines. And because more and more

Googlers originally hail from Asia, employees can ﬁ nd sushi at the Japanese-themed Paciﬁ c

Café or Thai red curry beef at the East Meets West Café.

Google believes food can be a tool for supporting an inclusive workplace. The array of

menu options gives people a chance to try new things and learn more about their coworkers.

And Google knows that when people need a little comfort and familiarity, nothing takes the

edge off of working in a foreign country like eating food that reminds you of home.

Many of today’s organizations, like Google, are making conscious efforts to shift

from a monoculture perspective to one of pluralism. Others, however, are still hin-

dered by stereotypical thinking. Consider a recent report from the National Bureau

of Economic Research, entitled “Are Greg and Emily More Employable than Lakisha

Google

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CHAPTER 12 MANAGING DIVERSITY 353

Organizing

and Jamal?” which shows that employers often unconsciously discriminate against

job applicants based solely on the Afrocentric names on their résumé. In interviews

prior to the research, most human resource managers surveyed said they expected

only a small gap and some expected to  nd a pattern of reverse discrimination. The

results showed instead that white-sounding names got 50 percent more callbacks

than black-sounding names, even when skills and experience were equal.

Discrimi-

nation’s reach extends beyond U.S. borders. One study conducted in France revealed

that a job candidate with a North African-sounding name had three times less chance

than one with a French-sounding name to get an interview.

FACTORS AFFECTING WOMEN’S CAREERS

Despite years of progress by women in the workforce, many  nd their career goals

are still unattainable or dif cult to achieve. In addition, men as a group still have the

bene t of higher wages and faster promotions. In the United States in 2005, for exam-

ple, women employed full-time earned 81 cents for every dollar that men earned.

Both the glass ceiling and the decision to “opt out” of a high-pressure career have an

impact on women’s advancement opportunities and pay. Yet women are sometimes

favored in leadership roles for demonstrating behaviors and attitudes that help them

succeed in the workplace, a factor called “the female advantage.”

Glass Ceiling

The glass ceiling is an invisible barrier that separates women from top management

positions. They can look up through the ceiling and see top management, but prevail-

ing attitudes and stereotypes are invisible obstacles to their own advancement. This

barrier also impedes the career progress of minorities.

In addition, women and minorities are often excluded from informal manager

networks and often don’t get access to the type of general and line management

experience that is required for moving to the top.

Research suggests the existence of

glass walls that serve as invisible barriers to important lateral movement within the

organization. Glass walls, like exclusion from manager networks, bar experience in

areas such as line supervision that would enable women and minorities to advance

vertically.

Evidence that the glass ceiling persists is the distribution of women and minorities,

who are clustered at the bottom levels of the corporate hierarchy. Among minority

groups, women have made the biggest strides in recent years, but they still represent

only 15.7 percent of corporate of cers in America’s 500 largest companies, up from

12.5 percent in 2000 and 8.7 percent in 1995.

In 2007, just seven companies, or 1

percent, among the Fortune 500 companies had female CEOs.

And both male and

female African Americans and Hispanics continue to hold only a small percentage of

all management positions in the United States.

Women and minorities also make less money. As shown in Exhibit 12.7, African-

American men earn about 22 percent less, white women 24 percent less, and Hispanic

men 37 percent less than white males. Minority women fare even worse, with Afri-

can-American women earning 35 percent less and Hispanic women 46 percent less

than white males.

Another sensitive issue related to the glass ceiling is homosexuals in the work-

place. Many gay men and lesbians believe they will not be accepted as they are and

risk losing their jobs or their chances for advancement. Gay employees of color are

particularly hesitant to disclose their sexual orientation at work because by doing so

they risk a double dose of discrimination.

Although some examples of openly gay

corporate leaders can be found, such as David Geffen, co-founder of DreamWorks

SKG, and Ford Vice Chairman Allan D. Gilmour, most managers still believe staying

in the closet is the only way they can succeed at work. Thus, gays and lesbians often

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PART 4 ORGANIZING354

fabricate heterosexual identities to keep their jobs or avoid running into the glass ceil-

ing they see other employees encounter.

Opt-Out Trend

Many women are never hitting the glass ceiling because they choose to get off the fast

track long before it comes into view. In recent years, an ongoing discussion concerns

something referred to as the opt-out trend. In a recent survey of nearly 2,500 women

and 653 men, 37 percent of highly quali ed women report that they voluntarily left

the workforce at some point in their careers, compared to only 24 percent of similarly

quali ed men.

Quite a debate rages over the reasons for the larger number of women who drop

out of mainstream careers. Opt-out proponents say women are deciding that cor-

porate success isn’t worth the price in terms of reduced family and personal time,

greater stress, and negative health effects.

For example, Marge Magner left her job

as CEO of Citigroup’s Consumer Group after suffering both the death of her mother

and a personal life-changing accident in the same year. In evaluating her reasons,

Magner said she realized that “life is about everything, not just the work.”

One school of thought says women don’t want corporate power and status in

the same way that men do, and clawing one’s way up the corporate ladder has

become less appealing. Yet critics argue that this view is just another way to blame

women themselves for the dearth of female managers at higher levels.

Vanessa

Castagna, for example, left JCPenney after decades with the company not because

she wanted more family or personal time but because she kept getting passed over

for top jobs.

Although some women are voluntarily leaving the fast track, many

more genuinely want to move up the corporate ladder but  nd their paths blocked.

Fifty- ve percent of executive women surveyed by Catalyst said they aspire to

senior leadership levels.

In addition, a survey of 103 women voluntarily leaving

executive jobs in Fortune 1000 companies found that corporate culture was cited as

the number one reason for leaving.

The greatest disadvantages of women leaders

stem largely from prejudicial attitudes and a heavily male-oriented corporate cul-

ture.

Some years ago, when Procter & Gamble asked the female executives it con-

sidered “regretted losses” (that is, high performers the company wanted to retain)

why they left their jobs, the most common answer was that they didn’t feel valued

by the company.

EXHIBIT 12.7

The Wage Gap

SOURCE: “2006 Median Annual Earnings by Race and Sex,” U.S. Census Bureau, Current Population

Survey, 2007 Annual Social and Economic Supplement, http://www.infoplease.com/us/census/median-

earnings-by-race-2006.html.

CHAPTER 12 MANAGING DIVERSITY 355

Organizing

Are You Tuned Into

Gender Differences?

How much do you know about gender differences

in behavior? Please answer whether each item

below is True or False. Answer all questions before

looking at the answers at the bottom of the page.

True False

1. Men control the con-

tent of conversations,

and they work harder

to keep conversations

going.

2. Women use less per-

sonal space than men.

3. A male speaker is lis-

tened to more carefully

than a female speaker

even when they make an

identical presentation.

4. In the classroom,

male students receive

more reprimands and

criticism.

5. Men are more likely to

interrupt women than to

interrupt other men.

6. Female managers com-

municate with more

emotional openness

and drama than male

managers.

7. Women are more likely

to answer questions not

addressed to them.

8. In general, men smile

more than women do.

9. Both male and female

direct reports see female

managers as better com-

municators than male

managers.

10. In a classroom, teachers

are more likely to give

verbal praise to female

students.

SCORING AND INTERPRETATION: Check

your answers below. If you scored seven or more

correctly, consider yourself perceptive and obser-

vant about gender behavior. If you scored three

or fewer, you may want to tune in to the gender

dynamics you are missing.

SOURCE: Myra Sadker and Joyce Kaser, The Communications

Gender Gap (Washington, DC: Mid-Atlantic Center for Sex

Equity, 1984).

New Manager’sSelf-Test

Answers 1: False (men control content, women work harder);

2: True; 3: True; 4: True; 5: True; 6: False (managers of both

sexes communicate about the same way); 7: False; 8: False

(women smile more); 9: True; 10: False.

PART 4 ORGANIZING356

The Female Advantage

Some people think women might actually be better managers, partly because of a

more collaborative, less hierarchical, relationship-oriented approach that is in tune

with today’s global and multicultural environment.

As attitudes and values change

with changing generations, the qualities women seem to naturally possess may lead

to a gradual role reversal in organizations. For example, a stunning gender reversal

is taking place in U.S. education, with girls taking over almost every leadership role

from kindergarten to graduate school. In addition, women of all races and ethnic

groups are outpacing men in earning bachelor’s and master’s degrees. In most higher

education institutions, women make up 58 percent of enrolled students.

By 2010,

the Department of Education expects the girl-boy ratio to be 60 to 40.

Among 25- to

29-year-olds, 32 percent of women have college degrees, compared to 27 percent of

men. Women are rapidly closing the M.D. and Ph.D. gap, and they make up about

half of all U.S. law students, half of all undergraduate business majors, and about

30 percent of MBA candidates. Overall, women’s participation in both the labor force

and civic affairs steadily increased since the mid-1950s, while men’s participation has

slowly but steadily declined.

According to James Gabarino, an author and professor of human development

at Cornell University, women are “better able to deliver in terms of what modern

society requires of people—paying attention, abiding by rules, being verbally compe-

tent, and dealing with interpersonal relationships in of ces.”

His observation is sup-

ported by the fact that female managers are typically rated higher by subordinates

on interpersonal skills as well as on factors such as task behavior, communication,

ability to motivate others, and goal accomplishment.

Recent research found a cor-

relation between balanced gender composition in companies (that is, roughly equal

male and female representation) and higher organizational performance. Moreover, a

study by Catalyst indicates that organizations with the highest percentage of women

in top management  nancially outperform, by about 35 percent, those with the low-

est percentage of women in higher-level jobs.

Complete the New Manager Self-Test on page 355 to generate more awareness of

gender differences in behavior.

CULTURAL COMPETENCE

A corporate culture, as discussed in Chapter 3, is de ned by the values, beliefs,

understandings, and norms shared by members of the organization. Although some

corporate cultures foster diversity, many managers struggle to create a culture that

values and nurtures its diverse employees. Managers who have made strategic deci-

sions to foster diversity need a plan that moves a corporate culture toward one that

reduces obstacles for disadvantaged employees. A successful diversity plan leads to a

workforce that demonstrates cultural competence in the long run. Cultural competence

is the ability to interact effectively with people of different cultures.

Exhibit 12.8 illustrates the  ve-step process for implementing a diversity plan.

These steps create cultural competence among employees by helping them better

understand, communicate with, and successfully interact with diverse coworkers.

Step 1: Uncover diversity problems in the organization. Most doctors can’t make

a medical diagnosis without  rst examining the patient. Similarly, organizations

cannot assess their progress toward cultural competence without  rst investigating

where the culture is right now. A cultural audit is a tool that identi es problems or

areas needing improvement in a corporation’s culture. The cultural audit is com-

pleted by employees who answer the following types of questions: How do promo-

tion rates compare? Is there pay disparity between managers in the same pay grade?

Does a glass ceiling limit the advancement of women and minorities? Answers to

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CHAPTER 12 MANAGING DIVERSITY 357

Organizing

these questions help managers assess the cultural competence of the organization

and focus their diversity efforts on speci c problems.

Step 2: Strengthen top management commitment. The most important compo-

nent of a successful diversity strategy is management commitment, leadership,

and support.

Some of the ways that top managers demonstrate their support of

diversity efforts are by allocating time and money to diversity activities, support-

ing the recommendations of problem-solving task forces, and communicating the

commitment to diversity through speeches and vision and mission statements.

Committed top managers also make diversity a priority by setting an example for

others to follow.

Step 3: Choose solutions to  t a balanced strategy. The best solutions to diver-

sity problems are those that address the organization’s most pressing problems

uncovered during Step 1. To be most effective, solutions should be presented in a

balanced strategy and address three factors: education, enforcement, and exposure.

Education may include new training programs that improve awareness and diver-

sity skills. Enforcement means providing incentives for employees who demonstrate

new behaviors and disciplinary action for those who violate diversity standards. A

good example is Denny’s restaurants. After facing discrimination lawsuits in the

early 1990s, Denny’s rebounded with a multifaceted diversity program that included

25 percent discretionary bonuses to all senior managers who signi cantly improved

their record of hiring and promoting minority workers.

Exposure involves exposing

traditional managers to nontraditional peers to help break down stereotypical beliefs.

For example, a company might team a white male manager with a female African-

American manager.

Step 4: Demand results and revisit the goals. The simple rule “what doesn’t

get measured doesn’t get done” applies to diversity efforts. Diversity performance

should be measured by numerical goals to ensure solutions are being imple-

mented successfully. Numerical goals demonstrate that diversity is tied to busi-

ness objectives. Examples of numerical goals might include tracking the salaries,

rates of promotion, and managerial positions for women and minorities. But these

personnel statistics don’t completely measure an organization’s progress toward

cultural competence. Other measures might include productivity and pro tability

tied to diversity efforts, employee opinions about their coworkers, and an assess-

ment of the corporation’s ability to provide a satisfying work environment for all

employees.

Step 5: Maintain momentum to change the culture. Success with any of the pre-

vious four steps is a powerful motivator for continuing diversity efforts. Corpora-

tions should use these successes as fuel to move forward and leverage for more

progress.

Step 2:

Strengthen top

management

commitment.

Step 3: Choose

solutions to fit

a balanced

strategy.

Step 5: Maintain

momentum to

change the

culture.

Step 1: Uncover

diversity

problems in the

organization.

Step 4: Demand

results and

revisit the

goals.

SOURCE: Based on Ann M. Morrison, The New Leaders: Guidelines on Leadership

Diversity in America (San Francisco: Jossey-Bass Publishers, 1992), p. 160.

EXHIBIT 12.8

Five Steps to Develop

Diversity

PART 4 ORGANIZING358

DIVERSITY INITIATIVES AND PROGRAMS

Today’s managers choose from a variety of solutions that create cultural competence.

As described in Step 3 of Exhibit 12.8, organizations may develop initiatives and pro-

grams that address their unique diversity problems. These initiatives may include:

(1) changing structures and policies, (2) focusing on diversity recruiting, (3) establish-

ing mentor relationships, (4) accommodating special needs; and (5) offering training

and education.

Changing Structures and Policies

Many policies within organizations originally were designed to  t the stereotypical

male employee. Now leading companies are changing structures and policies to facil-

itate and support diversity. A survey of Fortune 1,000 companies conducted by the

Center for Creative Leadership found that 85 percent of companies surveyed have

formal policies against racism and gender discrimination, and 76 percent have struc-

tured grievance procedures and complaint review processes.

Companies are also

developing policies to support the recruitment and career advancement of diverse

employees. At least half of Fortune 1,000 companies have staff dedicated exclusively

to encouraging diversity. Increasingly, organizations such as Procter & Gamble, Ernst

& Young, and Allstate Insurance are tying managers’ bonuses and promotions to

how well they diversify the workforce. Exhibit 12.9 illustrates some of the most com-

mon diversity initiatives.

Expanding Recruitment Efforts

For many organizations, a new approach to recruitment

means making better use of formal recruiting strategies,

offering internship programs to give people opportuni-

ties, and developing creative ways to draw on previously

unused labor markets. Nationwide’s Scholars Program

brings in Hispanic and African-American college students

for a three-year program that includes summer internships

and yearlong mentoring.

Marathon Ashland Petroleum

created a six-point recruiting strategy to increase diversity,

including: (1) recruiting corporate-wide and cross-func-

tionally, (2) building relationships with  rst- and second-

tiered schools to recruit minority students, (3) offering

internships for racial and ethnic minorities, (4) offering

minority scholarships, (5) establishing informal mentor-

ing programs, and (6) forming af liations with minority

organizations.

Establishing Mentor Relationships

The successful advancement of diverse group members

means that organizations must find ways to eliminate

the glass ceiling. One of the most successful structures

to accomplish this goal is the mentoring relationship. A

mentor is a higher-ranking organizational member who

is committed to providing upward mobility and support

to a protégé’s professional career.

Mentoring provides

minorities and women with direct training and inside

information on the norms and expectations of the orga-

nization. A mentor also acts as a friend or counselor,

Denny’s Restaurants, which was

hit with a series of discrimination lawsuits in the early 1990s, has

been changing structures and policies to promote and support

diversity. The company responded to the discrimination charges

with aggressive minority hiring and supplier-diversity efforts. In

July 2006, Black Enterprise magazine ranked Denny’s at the top of

its list of “Best 40 Companies for Diversity.” Around 51 percent of

Denny’s employees, 43 percent of franchisees, and 36 percent of

managers are members of minority groups.

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CHAPTER 12 MANAGING DIVERSITY 359

Organizing

enabling the employee to feel more con-

fident and capable. Joseph Cleveland has

made a point of helping young African

Americans navigate the corporate maze

in his career at General Electric and Lock-

heed Martin. For Pamela Blow-Mitchell,

Cleveland’s mentoring changed the course

of her career and enabled her to seize

opportunities she might otherwise have

missed. “He kind of dunked down deep in

the organization to initiate a conversation

with someone that he saw potential in,”

said Mitchell. “At the time, I could not see

the range of opportunities, but I trusted

his advice.”

One researcher who studied the career

progress of high-potential minorities found

that those who advance the furthest all

share one characteristic—a strong men-

tor or network of mentors who nurtured

their professional development.

However,

research also indicates that minorities, as

well as women, are much less likely than

men to develop mentoring relationships.

Women and minorities might not seek men-

tors because they feel that job competency

should be enough to succeed, or they might feel uncomfortable seeking out a mentor

when most of the senior executives are white males. Women might fear that initiating a

mentoring relationship could be misunderstood as a romantic overture, whereas male

mentors may think of women as mothers, wives, or sisters rather than as executive

material. Cross-race mentoring relationships sometimes leave both parties uncomfort-

able, but the mentoring of minority employees must often be across race because of

the low number of minorities in upper-level positions. The few minorities and women

who have reached the upper ranks often are overwhelmed with mentoring requests

from people like themselves, and they may feel uncomfortable in highly visible minor-

ity-minority or female-female mentoring relationships, which isolate them from the

white male status quo.

Fannie Mae, a major provider of home mortgage

funds, was in the news for all the wrong reasons after the U.S. government seized

control of it and Freddie Mac to avoid a collapse of the giant ﬁ rms due to losses from

mortgage defaults. Fannie Mae’s CEO was ousted and the ﬁ rm is being restructured,

but the company’s commitment to workforce diversity remains solid. Fannie Mae

offers a structured mentoring program to enhance individual capabilities and career

development. Here the director of legal operations is mentoring two Fannie Mae

employees. A partnership with a more experienced employee provides valuable insights

and contacts for minorities and women wanting to advance their skills and careers.

EXHIBIT 12.9

The Most Common Diversity

Initiatives: Percentage of

Fortune 1000 Respondents

SOURCE: Adapted from data in “Impact of Diversity Initiatives on

the Bottom Line: A SHRM Survey of the Fortune 1000,”pp; S12-S14, in

Fortune, special advertising section, “Keeping Your Edge: Managing a

Diverse Corporate Culture,” produced in association with the Society

for Human Resource Management, http://www.fortune.com/sections.