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Evaluation of diversity initiatives in multinational corporations


Rose Mary Wentling

To cite this Article Wentling, Rose Mary(2000) 'Evaluation of diversity initiatives in multinational corporations', Human
Resource Development International, 3: 4, 435 — 450
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HRDI 3:4 (2000), pp. 435–450

Evaluation of diversity initiatives in multinational


corporations

Rose Mary Wentling


University of Illinois

Abstract: This article reports the results of a study on the evaluation of diversity
initiatives in multinational corporations. Eight multinational corporations
headquartered in the USA were selected for this study. Two methods of data
collection were used: semi-structured face-to-face interviews and document
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analysis. Diversity managers/directors were asked to provide information on the


evaluation of diversity initiatives in their corporations. The study revealed that all
the corporations in the study were attempting to evaluate the effects of their
diversity initiatives on employees and organizations. The study also revealed that,
in an attempt to evaluate their diversity initiatives, each company uses a variety of
methods. Despite the difŽculty in determining the impact of diversity initiatives,
the corporations are making efforts to come up with measurements that can lead
them to confirm the value that diversity initiatives have for the organization’ s
proŽtability.

Keywords: diversity, evaluation, diversity initiatives, multinational corpora-


tions

Introduction

The changing workforce is one of the most extraordinary and signiŽcant chal-
lenges facing many organizations today. Workforce diversity is a demographic
phenomenon playing upon not only US organizations but also multinational
corporations and institutions in other countries around the world (LittleŽeld
1995; Morosini 1998). In addition, other business forces, such as global
competition and the need to remain competitive, are driving diversity into
organizations regardless of their geographical location.
Theoretically, international business has been one of the pioneer Želds in
valuing diversity (Simons 1992). Diversity, in this case, has emerged as a need
for survival and success. Multinational corporations are forced to develop and
implement initiatives that could lead them to capture and retain diverse customer
bases not only nationally but also throughout the world (Albert 1994; Fernandez
1993; Florkowski 1997; Norton and Fox 1997). They are also required to recruit
and retain a diverse workforce that mirrors its diverse market.
During the last decade, many organizations have responded to the increase
Human Resource Development International
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436 Peer-Reviewed Articles

in diversity with a variety of initiatives designed to manage diversity in the


workplace (Arredondo 1996; Baytos 1995; Cross and White 1996; Hayles
and Russell 1997; Loden 1996; Thomas 1996). For the purpose of this study,
diversity initiatives are deŽned as speciŽc activities, programmes, policies, and
any other formal processes or efforts designed to promote organizational culture
change related to diversity (Arredondo 1996). Examples of such initiatives
include non-traditional work arrangements, such as extime and home work
stations; education and training programmes intended to reduce stereotyping,
increase cultural sensitivity, and develop skills for working in multicultural
environments; career management programmes designed to promote construc-
tive feedback to employees, mentoring relationships, and access to informal
networks; and new employee beneŽts, such as parental leave and dependent-care
assistance (Arredondo 1996; Hayles and Russell, 1997; Jackson 1992).
Winterle (1992) conducted research for the Conference Board, studying
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166 leading corporations and, based on the results, developed an inventory


of diversity initiatives and grouped them into the following topical areas:
communications activities; education and training classes; employee-involvement
initiatives; career development and career planning activities; performance and
accountability initiatives; and culture-change initiatives.
Morrison (1992) grouped the diversity initiatives found in sixteen exemplary
organizations into four groups: (a) diversity; (b) accountability; (c) development;
and (d) recruitment practices. Similarly, by using several case studies based on
large US corporations, Gottfredson (1992) was able to group diversity initiatives
into five categories: (a) procedures to reduce ethnic and gender differences
in career outcomes; (b) procedures to accommodate immigrants to the USA;
(c) changes in organizational climate to value and utilize ethnic and gender
differences; (d) changes in procedures or climate to accommodate individual
differences among employees; and (e) decentralized problem solving to
accommodate local conditions. The Žrst three categories listed above address
diversity issues related to ethnicity and gender, and the last two categories
encompass all individual differences and are directed to all employees.
Several of the major US employing companies have started implementing
a great number and variety of diversity initiatives. There are many reasons
companies are implementing these initiatives in the workplace. Some of the
purposes that drive diversity programmes are: compliance, harmony, inclusion,
justice, and transformation (Rossett and Bickham 1994). Wentling and Palma-
Rivas (1998) interviewed diversity experts from across the USA and discovered
that companies are managing diversity because it helps organizations improve
productivity and remain competitive, form better work relationships among
employees, enhance social responsibility, and address legal concerns. However,
‘ it is unknown whether these programs are, in fact, producing expected gains,
because so few organizations have evaluated their outcomes’ (Comer and
Soliman 1996: 473).
Wentling: Evaluation of diversity initiatives 437

Even though there are many reasons to evaluate the impact of diversity
initiatives, the lack of attention to evaluation of diversity initiatives has been
reported by several authors (Comer and Soliman 1996; Johnson 1995; Wheeler
1994; Triandis and Bhawuk 1994). ‘ To ascertain if their investments are cost
effective, mechanisms should be in place to measure the success of diversity
efforts’ (Comer and Soliman 1996: 473). Casse (1991) stated that diversity
programmes should be evaluated to measure the nature of return on investment
to match the cost involved in them and to compare the situation before and
after the programme. It is also possible that ‘ well-intentioned diversity efforts
can cost an organization a great deal of time and money and yet not create any
signiŽcant, lasting change’ (Morrison 1992: 230). According to Comer and
Soliman (1996), lack of appropriate measures does not exclude organizations
from assessing the impact of diversity initiatives. Conversely, it underscores
dramatically the need for practitioners and researchers to develop such measures
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in order to determine whether organizational efforts to manage diversity are


really effective. Overman reported that companies concerned about the value of
diversity are still struggling to Žnd concrete ways to measure whether they are
succeeding’ (1992: 38).

Purpose and scope of the study

The purpose of this study was to identify practices, strategies, and processes
that are used to evaluate diversity initiatives in multinational corporations.
Multinational corporations, for the purpose of this study, are deŽned as business
corporations with their origin in one country, but having operations in multiple
countries. They incorporate intent on success, focus on realities, and adaptation
to conditions in several countries, in addition to their original countries
(Reynolds and Nadler 1993). An in-depth understanding was provided through
this study to contribute to reducing the lack of knowledge in the evaluation of
diversity initiatives in multinational corporations.

Research questions
The study examined the following major research questions:

1 How are diversity initiatives being evaluated in corporations?


2 How is the success of diversity initiatives measured in corporations?
3 How effective are diversity initiatives in corporations?
4 What components of diversity initiatives are difŽcult to evaluate in corpora-
tions?
438 Peer-Reviewed Articles

Methodology

This was a descriptive and exploratory study. Two major methods of data
collection were used: semi-structured face-to-face interviews and document
analysis. Interviews were conducted with workforce diversity manager/directors
who are responsible for diversity initiatives in multinational corporations
headquartered in the USA. The data obtained through the interviews consisted
of words in the form of rich verbal descriptions (qualitative data), as well as
quantitative data. Essentially, this study used a qualitative approach to answer
the research questions. A quantitative method in the form of frequencies and
percentages was also used to support the qualitative data. The second major
method of data collection used was document analysis. Documents related to
the evaluation of diversity initiatives in the multinational corporations were
collected from primary and secondary sources. Documents were solicited from
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the corporations and from standard literature sources, such as annual reports,
community relations reports, world-wide web, newspaper articles, and diversity-
related books in which the corporations were featured. The data obtained from
these documents provided insightful and enriched information that was used to
conŽrm and verify the information provided by the study participants during the
face-to-face interviews.

Population and sample


The population for this study was composed of the thirty multinational
corporations in a Midwest state in the USA listed in the book entitled Directory
of Diversity in Corporate America (1994). From those thirty corporations, a
sample of eight was randomly selected to participate in the study. The population
and sample selected for this study were appropriate because, in order for a
corporation to be included in the Directory of Diversity in Corporate America
(1994), it must meet the following criteria: (a) have extensive experience with
workforce diversity, (b) be a multinational corporation, (c) be allocating
resources to diversity initiatives, and (d) have launched successful corporate
diversity initiatives.
Eight diversity managers/directors at eight USA-based Fortune 500 multi-
national corporations were interviewed. The diversity managers/directors work
in corporations with sales varying from $10 billion to more than $50 billion, and
assets from $12 billion to more that $60 billion. The number of employees in
these corporations ranged from 48,100 to 378,000. The average number of
employees in these eight corporations was 125,250. The study participants are
employed in a variety of industries, which include the following: food (3),
electronics (1), chemicals (1), petroleum (1), pharmaceuticals (1), and specialist
retailer (1).
Five of the study participants were women and three were men. One
participant was in the age range 21–29 years old. Five participants were 40 to
Wentling: Evaluation of diversity initiatives 439

49 years old and two were in the age range 50 to 59 years old. Of the eight
participants, seven individuals were African-American and one was Hispanic.
Two participants had a bachelor’ s degree. three had a master’ s degree and
another three participants had a juris doctorate degree.

Data collection
The data were collected through interviews and document analysis. The
researcher conducted face-to-face interviews with eight workforce diversity
manager/directors in charge of diversity initiatives in eight multinational
corporations in a Midwest state in the USA. The researcher developed a semi-
structured interview guide to assist in collecting the data from the interviews.
The semi-structured interview guide addressed the following areas: (a) methods
for evaluating diversity initiatives, (b) how the success of diversity initiatives are
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measured, (c) effectiveness of diversity initiatives, and (d) components of diversity


initiatives that are difŽcult to evaluate. Semi-structured interviews were chosen
because they are ‘ reasonably objective while still permitting a thorough
understanding of the respondent’ s opinions and the reasons behind them’ (Borg
and Gall 1989: 452).
Names and phone numbers of the eight diversity managers/directors who
participated in the study were also obtained from the Directory of Diversity in
Corporate America (1994). Initial contacts with the diversity managers/directors
were made over the telephone, at which time dates, interview appointments,
and arrangements were made. All eight diversity managers/directors that were
contacted consented to participate in the study. Each interviewee received a
letter conŽrming the interview appointment and a copy of the interview guide
two weeks before the scheduled interview. The participants had the opportunity
to examine the interview questions prior to the interview. The interviews were
conducted on-site at each participant’ s corporate ofŽce. All interviews were tape-
recorded and extensive notes were also taken during each interview. The inter-
views lasted from one and a half to three hours, with an overall average of two
hours.
In addition, the researcher conducted a document analysis of written and
printed materials related to the evaluation of diversity initiatives in the multi-
national corporations. According to Gall et al. (1996), by studying past
documents researchers can achieve a better understanding of present practices
and issues. In addition, documents can be accessed at a time that is convenient
to the researcher, which saves time and expense in transcribing (Creswell 1994).
A study advisory committee, made up of four human resource development
(HRD) educators from a leading university in the USA, who have expertise in
diversity, evaluation, and qualitative research methods, reviewed the interview
guide and study procedures. Also, to determine content validity and appropriate-
ness of the interview guide, a pilot study was conducted with two diversity
directors from the study’ s target population. There was agreement by the study’ s
440 Peer-Reviewed Articles

advisory committee and the pilot test participants that the study procedures,
interview guide, and the data being collected were appropriate for meeting the
objectives of the study.

Data analysis

The data from the interviews were content-analysed. Content analysis is a


research technique for systematically examining the content of communications
– in this instance, the interview data. The researcher and another researcher
associate independently analysed the participants’ responses and the related issues
that arose during the interview process. No major discrepancies were found
when the analyses from the two researchers were compared. The researchers
read the responses, put them together as complete quotations, and Žled them
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according to the topic or issue addressed. Responses were analysed thematically.


Emergent themes were ranked by their frequency of mention and Žnally cate-
gorized. Data obtained through the interviews were analysed qualitatively and
quantitatively. Qualitative data in the form of descriptions and examples were
used to provide the basic research evidence, while quantitative data in the form
of frequencies and percentages were used to support the qualitative data
Documents were collected and analysed prior to, during, and after the
interviews. All together a total of 47 related documents were analysed. Related
documents obtained from the world-wide web, corporate sources, books, news-
paper articles, and so forth were all included in individual Žles for each of the
corporations in the study. The researcher coded the related documents by
relevant topic as they related to the major research questions. To further assist
in ensuring the reliability of the data analysis, the researcher invited a diversity
manager from a multinational corporation on the West Coast to review four of
the interviews. The ratings (frequencies of emergent themes) of the diversity
manager matched the researchers’ ratings in all of the four interviews reviewed.
The same procedure was followed for the related documents analysis, which
produced similar results.

Results

The results of this study are summarized in four major sections which parallel
the research questions: (a) methods for evaluating diversity initiatives, (b) how
the success of diversity initiatives are measured, (c) effectiveness of diversity
initiatives, and (d) components of diversity initiatives that are difŽcult to evaluate.
Wentling: Evaluation of diversity initiatives 441

Methods for evaluating diversity initiatives


Six (75 per cent) of the organizations evaluate diversity initiatives. A basic theme
that emerged from the study participants was that evaluating diversity initiatives
effectively was difŽcult and time consuming. Despite the difŽculty of evaluating
diversity initiatives, all of the organizations in the study were attempting to
measure their effects on employees and the organization. The study participants
together cited twelve methods for evaluating diversity initiatives. The range of
evaluation methods cited by participants numbered from three to seven. The
average number of evaluation methods used was 4.8. Table 1 presents partici-
pants in rank order by frequency of all the methods for evaluating diversity
initiatives that were cited by the study.
Six (75 per cent) of the study participants indicated they used employee
surveys, and another six (75 per cent) stated that they tracked employee data to
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evaluate the effectiveness of diversity initiatives. The employee surveys were used
to gather data from employees to determine their perceptions one to two years
after the original employee survey was conducted. The data collected from these
surveys gave the organization a basis for comparison from the point at which
it began the initial diversity initiative effort. The corporations that tracked
employee data reviewed the information to determine where improvements had
been made in such areas as turnover rates, retention, hiring, and promotion of
women and minorities. In addition, data were reviewed to determine if people
from diverse groups were represented at all levels of the organization, especially
at the top management ranks.
Half of the corporations in the study used management annual performance
reviews and the other half used 360-degree feedback as methods for evaluating
diversity initiatives. The management annual performance reviews were used to
determine if the manager’ s business unit was reaching effective and proŽtable
results by fully utilizing a more diverse workforce. The 360-degree feedback

Table 1 Methods for evaluating diversity initiatives (n=8)

Method f %

1 Employee surveys 6 75
2 Track employment data 6 75
3 Management annual performance reviews 4 50
4 360-degree feedback 4 50
5 Focus groups 3 38
6 Benchmarking 3 38
7 Diversity-speciŽc surveys 3 38
8 Customer feedback 3 38
9 Informal employee feedback 2 25
10 Informal employee group feedback 2 25
11 Employee attitude surveys 1 13
12 Peer reviews 1 13

Multiple responses were accepted.


442 Peer-Reviewed Articles

process was used to provide employee feedback to management related to his


or her skills and abilities in addressing diversity issues. This information was then
used to better develop managers in dealing with diversity issues.
Three (38 per cent) of the study participants reported using focus groups
as a method for evaluating diversity initiatives, another three (38 per cent)
used benchmarking, another three (38 per cent) used diversity-speciŽc surveys,
and another three (38 per cent) used customer feedback. The focus groups were
used to gather information from employees to determine their perception
of the progress of diversity initiatives in the organization. Benchmarking was
used to assess the company’ s progress related to diversity in relation to other
companies who are exemplary in addressing diversity. Diversity-speciŽc surveys
were used to obtain information about the climate of the company from various
diverse employee groups. Customer feedback was used to determine if their
diverse customers’ needs were being met by the company’ s products, services,
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and employees. In addition, informal employee feedback, informal employee


group feedback, employee attitude surveys, and peer reviews were methods of
evaluation of diversity used by two (25 per cent) or one (12.5 per cent) of the
corporations.

How success is measured for diversity initiatives


The study participants were asked to specify how success is measured for diversity
initiatives in their corporations. The study participants cited Žfteen methods for
measuring success of diversity initiatives. The range of methods cited by
participants numbered from Žve to 12. The average number of methods used

Table 2 Methods for measuring success of diversity initiatives (n=8)

Method f %

1 Leadership commitment 8 100


2 Representation of diversity at all levels of the organisation 8 100
3 Measure progress against stated goals and objectives 6 75
4 Diversity initiatives are assisting to meet the company’ s
strategic plans and goals 6 75
5 Promotion rates 5 63
6 Hiring rates 5 63
7 Turnover rates 5 63
8 Retention rates 5 63
9 Absenteeism rates 5 63
10 Performance ratings 3 38
11 Attitude and behavioural change 3 38
12 Employee satisfaction 3 38
13 Complains about diversity issues 2 25
14 Work group performance 2 25
15 External recognition and awards 2 25

Multiple responses were accepted.


Wentling: Evaluation of diversity initiatives 443

was 8.5. Table 2 presents in rank order by frequency all the methods for
measuring success of diversity initiatives that were cited by the study participants.
All of the study participants indicated that they looked at leadership commit-
ment as a way of measuring success of diversity initiatives. According to the
study participants, there is an indication of success if leaders in the organizations
are committed to and supportive of diversity initiatives and are willing to allocate
resources to help ensure the success of diversity efforts. All the participants
also reported using representation of diverse populations at all levels of the
organization as a method for measuring the success of diversity initiatives.
Six (75 per cent) of the corporations studied measured their success by
observing goals and objectives attained, and another six (75 per cent) noticed if
diversity initiatives were assisting in meeting the goals of the company’ s strategic
plan. If they achieved their goals, then they could conclude that the diversity
initiatives were successful.
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Five (63 per cent) of the study participants reported using promotion rates,
hiring rates, turnover rates, retention, and absenteeism rates as methods for
measuring success of diversity initiatives. These measures were set to obtain their
objective of creating and maintaining a diverse workforce and also of meeting
AfŽrmative Action requirements.
Three (38 per cent) of the study participants indicated they use performance
rates, attitude and behavioural change, and employee satisfaction as methods
for measuring success of diversity initiatives. These measurements were often
achieved through performance appraisals, conducting informal employee feed-
back, and general observations.
Complaints about diversity issues, work group performance, and external
recognition and award were used by two (25 per cent) of the corporations
studied as methods for measuring success of diversity initiatives. It is interesting
to note that, although only two (25 per cent) of the study participants identiŽed
external recognition and award for measuring success, the review of the related
documents revealed that all of the corporations had received widespread public
recognition for their exemplary human resource practices related to diversity.
For example, half of the corporations in the study were included in the book
The Best 100 Companies for Minorities, three (38 per cent) were included in the
book Best Companies for Working Mothers, two (25 per cent) had received the
Catalyst Award for innovative efforts in providing equal opportunity for women
and minorities, and another two (25 per cent) had received the Manufacturer
of the Year Award for community citizenship and commitment to women and
minority employees.

How effective diversity initiatives have been


The study participants were asked to specify from their perspective how
effective the corporation’ s diversity initiatives had been on a scale from ‘ very
effective’ to ‘ very ineffective’ (scale: very effective, effective, average, ineffective,
444 Peer-Reviewed Articles

very ineffective). Six (75 per cent) of the study participants stated that the
diversity initiatives have been very effective and have had a positive impact on
employees and the organization. Two (25 per cent) of the study participants
indicated that the effectiveness and impact have been average, meaning that
diversity initiatives have had a relative success. These two research participants
based their opinions on just perceptions because (a) it was too early to judge the
effectiveness or impact of the diversity initiatives and (b) there were no hard
data available at the time the interviews took place.
The following statements were made by the study participants on the degree
of effectiveness or impact of diversity initiatives.

Some examples of our success are the positive feedback that we get from our
employees regarding the beneŽts of our diversity efforts, such as training. Also, the
positive feedback we get when we do presentations about how and why we are
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addressing diversity. From what I sense and hear, diversity is very well received in
this organization. The employees are beginning to feel much better and they sense
that managers are now walking the talk.

One of the study participants indicated that their diversity initiatives have
been successful because (a) the minority representation has changed throughout
the organization and (b) their diversity initiatives are being highly benchmarked.
For them that meant that many other organizations have followed their example
regarding diversity initiatives. This study participant stated:

We know that the number of women has increased tremendously. There was a
time when very few women were working in this corporation. We know that there
is a major shift in the employee make-up. Women are now represented in all key
departments and this is a major shift in terms of how we’ ve grown and changed.
Sometimes we get external recognition by impartial organizations for our efforts
in providing opportunities for women.

Another study participant said, ‘ We have very good results based on our
diversity initiatives and top management is very happy with our work and
progress and the impact we are having on the company.’ Still another study
participant stated:

We have been very effective in that we have raised diversity awareness throughout
the entire organization from top to bottom. The organization as a whole
understands the value and business impact of diversity. This has resulted in many
more business units implementing diversity related initiatives.

The two study participants who indicated that it was too early to judge the
success and effectiveness of diversity initiatives had this to say: ‘ Effectiveness and
impact should be data driven. I can’ t give you any hard data because I need
another year. However, based on perceptions and generally speaking, diversity
is well supported.’ The other study participant stated:
Wentling: Evaluation of diversity initiatives 445

It is going to take a while before we really know how successful and effective we
are going to be, because we are talking about a cultural change and this is going
to take time. We realized that it is going to be at least a three- to Žve-year effort.
Therefore, it is too early for us to judge our successes and effectiveness.

Components of diversity initiatives that are difŽcult to evaluate


The study participants were asked to identify the components of diversity initia-
tives that were difŽcult to evaluate. The study participants cited six components
of diversity initiatives that were difŽcult to evaluate. The range of components
cited by participants numbered from two to four. The average number of
components cited was three. Table 3 presents in rank order by frequency all the
components of diversity initiatives that are difŽcult to evaluate as cited by the
study participants. Six (75 per cent) of the study participants indicated that the
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impact of diversity on bottom-line (profitability) was difficult to evaluate.


Another six (75 per cent) stated that impact of diversity on productivity was
difŽcult to evaluate. According to the study participants, bottom-line (proŽt-
ability) impact and productivity are two of the greatest challenges in evaluating
the effectiveness of diversity initiatives. The reasons for these challenges were that
bottom-line (proŽtability) and productivity are inuenced by so many factors
that it was difficult to isolate the specific diversity initiatives that caused the
increased productivity or proŽt levels.
Five (63 per cent) of the study participants found it extremely difŽcult and
time consuming to evaluate the return-on-investments of diversity initiatives.
These participants indicated that they did not have an effective method for
measuring the profitability gain that resulted from the money invested on
diversity initiatives.
Behaviour changes and employee attitudes were mentioned as difŽcult to
evaluate by three (38 per cent) of the study participants. Attitudes and behav-
ioural changes were seen as difŽcult to evaluate because they may take a long time
to occur and many times may go unnoticed. One of the study participants stated
that internal readiness to launch diversity initiatives was difŽcult to evaluate.
Internal readiness meant that employees and managers were ready to accept

Table 3 Components of diversity initiatives that are difŽcult to evaluate (n=8)

Method f %

1 Impact of diversity on bottom-line (proŽtability) 6 75


2 Impact of diversity on productivity 6 75
3 Return-on-investment 5 63
4 Behaviour changes 3 38
5 Employee attitudes 3 38
6 Internal readiness 1 38

Multiple responses were accepted.


446 Peer-Reviewed Articles

diversity as part of the organizational culture. This was seen as difŽcult because
there was no effective way to determine if organizational members were ready
for this change, which was seen as necessary and critical for effective imple-
mentation of diversity initiatives.

Discussion

This study found that all corporations were attempting to evaluate the effects
of their diversity initiatives on employees and organizations. The study also
revealed that, in an attempt to evaluate their diversity initiatives, each company
uses a variety of methods. This Žnding does not support the Žndings reported
by Morrison (1992). She found that very little is being done in evaluating
particular diversity practices. What this study revealed is that evaluation of
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particular diversity initiatives seems to be rather new among the corporations that
participated in the study. This study also found that effectiveness of evaluations
is a major concern. The corporations in this study seem to recognize that diversity
initiatives need to be evaluated. Because of the emphasis on evaluation and
well-elaborated tools some corporations have to evaluate diversity initiatives,
it is possible to conclude that evaluation is becoming a more important part
of the process of diversity initiatives. Other authors have also emphasized
the importance of conducting evaluations for diversity initiatives (Arredondo
1996; Jackson and Associates 1992; Morrison 1992; Rynes and Rosen 1995).
Evaluation is an on-going process and is critical to the success of any diversity
initiative.
This study also examined how corporations measure the success of their
diversity initiatives. Leadership commitment and representation of diversity at
all levels of the organizations were the most common ways to measure success.
These findings are consistent with results obtained in this area by Wheeler
(1996). He examined the corporate practices in diversity measurement, and
what he found was that leadership commitment is a critical measurement
component to ensuring that the organizational culture supports diversity
initiatives.
This study identiŽed impact on bottom-line, impact on productivity, and
return-on-investment as the components most difŽcult to evaluate for diversity
initiatives. Similar areas difŽcult to evaluate were reported by a study conducted
by Wheeler (1996). Wheeler’ s study revealed that productivity, growth, and
proŽtability of diversity strategies remain the most challenging and difŽcult areas
to measure. There seem to be at least two reasons people in corporations have
identiŽed bottom-line, productivity, and return-on-investments as difŽcult to
evaluate. These areas are usually affected by many variables, and it is difŽcult
to isolate cause–effect relationships (Wheeler 1994). Interestingly, even when
there might be an increase in profitability and productivity due to diversity
initiatives, it is difŽcult to prove that diversity is the reason for such improvement
Wentling: Evaluation of diversity initiatives 447

(Morrison 1992). Another reason might be that people do not have the necessary
knowledge, skills, and experience to determine the overall impact of diversity
initiatives. Despite the difŽculty in determining the impact of diversity initiatives,
the participants in this study were making efforts to come up with measurements
that can lead them to confirm the value that diversity initiatives have to the
organization’ s proŽtability. When HRD professionals start to show management
exactly how much value diversity initiatives can contribute to the process of
building an inclusive work environment, improving organizational performance,
and achieving business goals and objectives, these initiatives will become a
strategic business requirement (Hubbard 1997).

Educational importance of the study


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The intent of the study was twofold. First, the study was designed to provide an
interpretation of the how diversity initiatives are evaluated within multinational
corporations to help educators understand the status of diversity initiatives within
these organizations. From this study, educators will learn about differences in
organizational responses to evaluating diversity initiatives. They will understand
the varying levels of concerns within corporations in evaluating the effectiveness
of diversity initiatives in the workplace. The information on the evaluation of
diversity initiatives from this study will enable educators to: (a) revise their
curricula appropriately to reect concerns and difŽculties of evaluating diversity
initiatives; (b) identify strategies for evaluating diversity initiatives more
effectively; and (c) illustrate for their students the continuing impact of diversity
on the organizational culture and climate of these multinational corporations.
The second intent of this study was to provide information on the status
of the evaluation of diversity initiatives in corporations to decision-makers, such
as human resource managers, training and development specialists, and line
managers. The information on evaluation of diversity initiatives from this study
can be used for benchmarking within their organizations. In addition, this study
may aid in the self-reective process organizations use to assess their current
status and assist them in developing more effective strategies to evaluate diversity
initiatives within their organizations. The information from the study may
inuence the development of a deeper understanding of the diversity initiative
evaluation processes within organizations. This understanding, in turn, may
provide insight and direction for improving evaluation practices not only in the
Želd of human resource development, but also in other areas of management.
The information may encourage or persuade human resource development
practitioners or any person in charge of programmes dealing with diversity in
organizations to: (a) better assess the needs of the employees, (b) improve the
design, implementation, and evaluation of diversity efforts, and (c) identify
initiatives to improve the management of a diverse workforce.
448 Peer-Reviewed Articles

Recommendations for further research

A limitation of this study was that information was provided by a selected group
of diversity managers/directors. This may be potentially problematic because
members of different groups have been found, on average, to perceive diversity-
related issues in different ways (Fernandez 1993; Tsui et al. 1992). There is a
possibility, for example, that diversity managers/directors are more optimistic
about diversity issues. Additional research from multiple perspectives is necessary
to address evaluation of diversity initiatives in multinational corporations. Further
research could also target a larger sample of companies that are known to be
conducting diversity initiatives and are also intensively evaluating their effects.
Further, longitudinal research is needed to examine the development,
changes, accomplishments, barriers, and trends of diversity initiatives in corpo-
rations. It is necessary to make comparisons with future diversity initiatives.
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Longitudinal research would provide information on the accomplishments and


failures of diversity initiatives. This type of study would be valuable and useful
in assessing if real progress has been made. Overall, more research on the
evidence of the diversity initiatives effectiveness is needed.
Human resource development professionals are impeded by the almost
complete absence of empirical research showing that diversity initiatives actually
represent a definite or potential competitive advantage in organizations. In
fact, little research has been conducted to date examining the factors relating
diversity to job performance. The general point, here, is that human resource
development professionals would have a far easier time ‘ selling ’ diversity
initiatives if they were supported by a stronger research base linking them to
various successful job performance outcomes.
Therefore, further research should explore the impact of diversity initiatives
of different durations, in different contexts, and with different designs. Further
research could also identify which strategies are particularly effective in obtaining
top-level management support for diversity efforts and also determine how a
good diversity manager differs from a typical good manager. Additional research
in the Želd of diversity will add to the understanding about the impact of diversity
efforts and provide a feedback mechanism that will allow future efforts in this
area to meet its intended goals and objectives more fully.

Address for correspondence

Professor Rose Mary Wentling


Department of Human Resource Education
College of Education 345
University of Illinois
Champaign, Illinois 61820, USA
E-mail: rmcwent@uiuc.edu
Wentling: Evaluation of diversity initiatives 449

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