Organizational Processes for TPP:
Session 7
Managing Diversity in
Organizations
& Affirmative Action Planning
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Session Design (3 hours)
• Introduction (5 min.)
• Key concepts and historical context (15
min.)
• Diversity research and organizational
performance (30 min.)
• Case examples (45 min.)
• Break (10 min.)
• Preparing for the Affirmative Action
Reactions (30 min.)
• Role Plays (45 min.)
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Key Issues for Today
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How do we gain competitive advantage from the diverse
backgrounds, knowledge bases, and cultural experiences
present in today’s workforce?
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What is the relationship between diversity and organizational
performance? Is there a “Business Case” for diversity?
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How can we manage diverse teams to product positive
organizational and personal results?
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What are the elements of a systemic organizational approach
to managing diversity?
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How do we prepare for the coming debates/reactions to the
affirmative action case?
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Diversity--Some Visible
Elements
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Gender
Race
Ethnic
Age
Cross Cultural – look around!
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Some Hidden Aspects of Diversity
• Cognitive – how we approach problems
• Discipline or Function--different
knowledge; different solutions
• Cultural – norms of interaction &
communication
• Multiple identities – woman, engineer,
mother, project leader…..which one do
others see? Which one comes out?
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The Rhetoric Today
“The Business Case” for Diversity
– Talent Shortage
– We need to reflect our customers
– Diverse teams produce better results
Lew Platt, former CEO, Hewlett Packard
How did we get here?
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A Brief Historical Tour
• 1960s-70s
• New Legal Requirements; Civil
Rights Pressures; Affirmative Action
• 1980s
• “Valuing Diversity”: Training
Focused on Attitudes and
Sensitivities
• 1990s-present
• The Business Case: Expected to
accelerate rate of progress
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Prior Evidence
• Legal/social pressures improved formal
organizational HR practices but had little
effects on attitudes, behaviors, or “subtle”
discrimination
• Few sustained effects of “valuing
diversity” training
• No consistent relationship between
demographic diversity and team
performance
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Diversity Research Network
Project
• Industry-Academic Partnership
– BOLD Initiative
– Multi-university research Network
– Field Studies in Companies
• qualitative histories
• quantitative analysis at team/group levels
• Focus is on a “business case” analysis -diversity-group process-performance
outcomes
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Elements in a Systemic Model:
Benchmarking
• Commitment from the Top
• Commitment embedded in Org. Values &
Strategies
• Dedicated Resources--Accountable Prof. Staff
• Management Accountability-Link to Perf. Reviews
• Broad Communication-Info Exchange
• Strong Fairness/Compliance System/Procedures
• Diversity Training that Reaches All--Effectively
• Mentoring & Career Development Supports
• Diversity Committee/Identity Groups
• Evaluation, Measurement of Effects/Progress
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Beyond “Best Practices”
Human Interactions
• Perspectives:
– Legal Requirement
– Labor or Product Market Necessity
– Opportunity for Learning
• Skills & Capabilities for Leading &
Working in Diverse Settings
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The Research Model
The Effects of Diversity on Group Processes and Outcomes
Organizational Culture
Business Strategy
Human Resource Policies
Diversity
Cultural
Demographic
Technical
Cognitive
Group/Team Processes
Communications
Conflict
Cohesion
Outcomes
Performance
Satisfaction
Turnover
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Evidence--Building from the
Studies
• Historical Context: Diversity achieved through sustained
effort, external pressure, mgmt. commitment
• External pressure necessary, but not sufficient--a
learning/integration perspective also needed
• HR systems/decisions must sustain diversity through critical
transitions in business--growth, mergers, layoffs, top
management shifts, etc.
• Group dynamics and leadership are critical processes that
determine whether diversity produces positive or negative
results:
– communications
– conflict management
– cohesion
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Additional Considerations: Alternative
“Perspectives” Toward Diversity”
• Legal Requirement
• Labor or Product Market Necessity
• Opportunity for Integration & Learning
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Four Case Studies
• Two Information Processing Firms
• A Financial Services Firm
• A Retail Chain
All large firms with national reputations for a
longstanding commitment to diversity
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Case 1: Information Processing Firm
Karen Jehn and Katerina Bezrukova
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No direct relationship between race or gender diversity and
performance
Different types of diversity have different effects on group
processes:
– gender diversity--positive
– Racial--negative
Training focused on management of group processes reduce
these negative effects
Constructive group processes have positive effects on diversity
Gender diversity had positive effects on performance in units
with a people oriented culture but not others
Racial diversity had negative effects in units with a competitive
culture but not others
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Case 2: Financial Service Branches
Robin Ely and David Thomas
• Few direct effects of diversity on performance
• Effective group processes positively associated with
sales revenue, productivity, and customer sat.
• No evidence that group processes mediated the
diversity—performance relationship
• Racial diversity had a positive effect on performance
in branches with a high integrative and learning
perspective and a negative relationship with
performance in units with a low integrative and
learning perspective
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Case 3: Information Processing Firm
Susan Jackson and Aparna Joshi
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Team Level:
– No significant negative or positive effects of race or gender diversity on either
team processes or performance when teams were analyzed without regard to
organizational context.
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District Level: Mixed Evidence:
– Greater gender and ethnic diversity associated with higher team cooperation
– Regions with more gender diversity performed better on some measures
– Regions with more racial diversity performance worse on some measures
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Additional analyses at the district level revealed that the effects of team
diversity depend upon the amount of diversity within the district.
– Service Teams: Team gender diversity improves team processes &
performance in districts with high gender diversity
– Sales Teams: Team racial diversity improves team processes and
performance in districts with high racial diversity
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Case 4: Branch Stores of a Retail
Chain
David Levine, Jonathan Leonard, and Aparna Joshi
• Focus was to test relationship of workforce
diversity—customer diversity link
• No relationships between workforce and customer
diversity observed
• Some small, positive effects for racial and gender
diversity on sales performance. But this was
outweighed by positive effects of percent male and
percent white on performance
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Conclusions: Is the glass half full or half empty?
• More evidence for lack of significant direct diversity
performance relationship
• Some evidence that racial diversity may still have
some negative effects on group processes or
performance
• Negative effects may be reduced or eliminated by
training focused on group processes
• Some support for an “integration & learning”
perspective
• Some indications that diversity in the larger
organization helps diverse groups perform well
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Evidence--Building from the Studies
• Historical Context: Diversity achieved through sustained
effort, external pressure, mgmt. commitment
• External pressure necessary, but not sufficient--a
learning/integration perspective also needed
• HR systems/decisions must sustain diversity through critical
transitions in business--growth, mergers, layoffs, top
management shifts, etc.
• Group dynamics and leadership are critical processes that
determine whether diversity produces positive or negative
results:
– communications
– conflict management
– cohesion
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Some Managerial Implications
• Modifying the “Business” Case (next slide)
• Is it time to Look Beyond the Business Case?
• Importance of Group Process Training
• Need for a more Analytical Approach to
Diversity Management
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Revised Statement of the “Business
Case” for Diversity
Diversity is a reality in both labor markets and product markets
today. To be successful in working with and gaining value from
this diversity requires a sustained, systemic approach and
commitment. Success is facilitated by a perspective that views
diversity as an opportunity for everyone in an organization to learn
from each other how to better accomplish their work and an
occasion that requires a supportive and cooperative
organizational culture as well as group leadership and process
skills required for effective group functioning. Organizations that
invest their resources in taking advantage of the opportunities that
diversity offers should ooutperform those that fail to make such
investments.
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Research—Lessons Learned
• More difficult than we expected!
• Many organizations interested but most declined to
participate
• Data access problems—can be overcome but with
lots of work on researchers’ part
• Testing the full model is difficult in any single setting
• Cross organization designs may be unrealistic
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Directions for Future Research
• High priority to organization-specific
experiments
• Deeper mix of contextual, qualitative,
historical, and quantitative research designs
• Great value in building a research network—
and keeping it loosely structured
• Importance of building collaborative
relationships with specific organizations
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The MIT Case
• President Vest: Commitment with Understanding
– Visible leader in legal battle for diversity in admissions
– Financial support for minority hiring; created Campus
Committee on Race Relations; supports women’s study…
– Understands need to work to gain value from diversity
“The tensions introduced by diversity into the academic
community are very real. We need to find ways for our
differences of experience, culture and perspective to
enrich, rather than divide our community…”
Source: 1992-93 President’s Report
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MIT, contd.
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Mgmt. Accountability--still working on this!
Communications--Active MLK day; Women in Science
Compliance Systems--very decentralized to departments
Training--voluntary--some good examples; low coverage
Mentoring/Career Supports--very decentralized; spotty
Diversity Committees/Identity Groups: CCRR; Women in
Science; Women in Engineering; Women in Sloan…
• Evaluation-Measurement--studies underway on undergrads,
faculty, and staff--part of the MIT culture
• Informal Culture and Process Skills: Still Problematic
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Affirmative Action: What it is,
What it’s Not & How it Works at
MIT
Presentation of the Committee on
Campus Race Relations (CCRR)
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Introduction & Overview
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MIT’s Position in Summary Form
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History of Affirmative Action—where did the
concept come from?
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Legal History—Background to the Michigan Case
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Affirmative Action at MIT—how does it work here?
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Affirmative Action: Brief History
• 1961: JFK E.O. 10925: federal contractors to
use AA to insure equal treatment
• 1964: Civil Rights Act & creation of EEOC
• 1965: LBJ E.O. 11246: federal contractors to
use AA to expand minority job opportunities
– Labor market analysis
– Organizations must designate responsible officer
– Plan for utilizing minorities and women
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Affirmative Action: Legal Overview
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1978: Bakke v U of Cal: Upheld race as one factor in
admission but outlawed reserving specific number of slots for
minorities
– 5-4 decision
– “Strict Scrutiny” doctrine established—must be able to show a
compelling government interest and means used be narrowly
tailored to serve that interest
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1996: California Prop. 209: Abolished all public sector AA
programs in ed and employment and contracting
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1996: Texas v Hopwood (U.S. Ct. of Appeals: Law School’s
admission policy of considering race unconstitutional under
equal protection clause
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U of Michigan cases: Can universities add points to admissions
scores for underrepresented minorities?
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Evidence from Industry
• Wage & Employment Discrimination still exist
• Audit studies find 5-20% differences in housing/job
offers favoring whites
• Affirm action achieves modest employment share
gains of 2-5%
• Affirm action has major effect on improving quality of
human resource practices—recruiting, selection,
training, performance appraisal, etc.
• No conclusive evidence of efficiency losses (or gains)
due to affirm action
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MIT’s Position: Summary
Form
• MIT’s quality of education is enhanced by the diversity of
its student body
• Suits to limit affirmative action threaten the ability of MIT
and other institutions of higher education to serve our
nation and its future
• We must retain the freedom to consider race as one of
many factors in admissions: Race conscious recruiting
& selection processes are essential to achieving racial
diversity at highly selective colleges and universities
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From the Brief
“…MIT believes that a diverse student body is
essential to its mission. That mission is to
serve the nation and prepare graduates to
address challenges in a diverse world that is
increasingly driven by science, engineering
and technology—creative fields that require
effective collaboration among individuals of
many races, national origins and
backgrounds.”
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Cosponsors of the Brief
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MIT
Stanford
IBM
DuPont
National Academy of Sciences
National Academy of Engineering
National Action Council for Minorities in
Engineering
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Co-sponsors’ Statement
“As great universities, leading corporations and national
academies, we have a profound responsibility to
provide for the future economic strength, health and
security of this nation. The Court must not block our
path to building the diverse scientific and engineering
workforce and leadership we need to do the job.”
Source: February 17, 2003 Press Release
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Affirmative Action @MIT—what it
is Not
• MIT does not use any quotas, targets, or
mathematical formulas in admissions
• MIT does not lower its standards of admission
for underrepresented minorities
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Affirmative Action @ MIT: How it
really Works
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Extensive outreach to identify qualified minorities and to
encourage them to apply
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Dual rating of all applicants without regard to race used to
identify pool of capable applicants:
– Academic Index: Grades, Class Rank, Scores
– Personal Index: leadership, extracurricular activities, experiences
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Subjective judgments of staff based on each individual’s full
range of accomplishments, experiences, and potential
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Race, national origin & ethnicity are considered as one of
multiple factors because they are part of the social & cultural
contexts of an individual’s life experiences
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What’s at Stake
• Use of test scores, grades, and class rank would
reduce the pool of qualified minority applicants
• Compared to whites African-Americans are:
– 50% less likely to graduate in top 10% of their class
– 40% less likely to have an A average
– Only 5% score above 600 on math or verbal SATs compared
to 24% (math) and 21% (verbal) of whites
• Bowen & Bok study estimates: A race neutral
standard would reduce number of black students at
highly selective colleges to 2% or less
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A Systems’ View for Promoting
Diversity on Campus
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Active outreach to identify qualified minorities and get them to
apply
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Considering race as one factor among others in choosing
among qualified applicants
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Active efforts to get those admitted to accept
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Special efforts to help minorities and others to succeed at MIT
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Active efforts to create a supportive environment and to provide
opportunities for all community members to interact, to learn
from our diversity, and to develop the skills and capabilities
needed to be effective participants and leaders in industry and
society
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The Problem & Task
Affirmative Action: What Should MIT do NOW
to Prepare the Campus Community for the
Supreme Court Case to be Heard this Spring
and Announced this Summer?
Your Task: Design a Strategy and get Buy-in
from key stakeholders
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Process
• Brainstorm Stakeholders & Interests (full group)
• Small groups: Design a Strategy in Small Groups—
Divide up the Stakeholders
• Objective: Get Buy In and Active Support for Your Plan
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Role Play: Fishbowl Exercise
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The Fishbowl (1): Change within
the MIT Culture
• Approach each Stakeholder—
• Freeze at any counter-cultural tactic
 Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”