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culturaldivch12CR.ppt

Diversity Management: Toward a Globally Inclusive Workplace

Michàlle Mor Barak, Ph.D.

© 2011 SAGE Publications, Inc.

Managing Diversity: Toward a Globally Inclusive Workplace 2e

Michalle Mor Barak

Chapter 12

The Inclusive Workplace:

Level I - Inclusion Through Diversity Within the Work Organization

Diversity within work organizations –

  • Relates to the organization’s internal relations with its own employees

  • Reflects the “micro” system level, that of individuals and groups within the organization

Inclusion Through Diversity within Work Organizations

Inclusion Through Diversity within Work Organizations

The Inclusive Workplace: The Value Base for Level 1

Inclusion Through Diversity within Work Organizations

The Inclusive Workplace: The Practice Model for Level 1

Inclusive Policies and Practices

Inclusive Policies and Practices: Diversity Policies and Practices that an organization can implement to create an inclusive environment

Management leadership: senior management taking the lead in

major diversity projects

Education and Training: conducting seminars and workshops to

increase diversity awareness and skill building, and to help

employees understand the need for, and meaning of, valuing

diversity

Inclusive Policies and Practices (cont.)

Performance and Accountability: developing diversity action

plans to meet the goals of specific business units and of the

Organization and holding managers accountable by linking

diversity performance to compensation

Work-family balance: offering flexible work arrangements to

accommodate diverse needs and life styles of employees

Career Development and Planning: establishing career

development and planning initiatives for women and members of

under-represented groups to ensure fair promotion and to increase

diversity representation in managerial level jobs.

Level I Case Illustration:
Denny’s Inc.

  • In the early 1990’s, many accounts of denial of service, discrimination and mistreatment from African-Americans who visited Denny’s came forth. This resulted in two class-action lawsuits that accused Denny's of repeated civil-rights violations, including:

Requiring African-Americans to prepay for meals,

Limiting the number of African-American patrons during certain times,

Denying complimentary "birthday meals" for African-Americans, and

Forcing the removal of African-Americans from its restaurants.

  • The problem was systemic, as evidenced by other practices. Denny's had only one African-American franchisee and had no minority suppliers in the early 1990s. Denny's board of directors consisted almost exclusively of white men.

The Issue

Level I Case Illustration: Denny’s Inc.

After paying $54 million to settle the lawsuits, Denny's went major changes to improve the level of diversity within the company as well as to improve employees treatment customers, including.

Denny's hired a new CEO, Jim Adamson, in 1995. Upon starting, Adamson create a Chief Diversity Officer position filled by Rachelle Hood-Phillips.

Together Hood-Phillips and Adamson implemented many changes , including: methods to effectively measure and track diversity, initiatives to link diversity to a manager's bonus; and well implementing diversity trainings.

Hood-Phillips and Adamson also made substantial improvements in the diversity of employees by increasing the number of minority franchise and increased its purchases from minority-owned suppliers.

The New Face of Denny’s

Level I Case Illustration: Denny’s Inc.

Could Denny's have managed their diversity issues better? Why or why not?

Why do you think Denny's is facing continuing discrimination lawsuits? Do the lawsuits indicate that Denny's policies and practices are not working? Are there other explanations? If you were a consultant, what would you advise the company to do at this point? 

Jim Adamson stated that he would fire anyone who discriminated or challenged his new policies. What message did this statement send to the employees? What impact do you think it had on employee morale and customer relations?

Was Jim Adamson effective in improving Denny's diversity and public image? Why or why not?

Questions for Discussion and Further Analysis

Level I Case Illustration: Denny’s Inc.