Best Practices or Best Guesses Which Corporate Diversity by suf46043

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									       Best Practices or Best Guesses:
        Which Corporate Diversity
             Programs Work?

                                       Frank Dobbin
                    Harvard University, Department of Sociology


 Excellence Empowered by a Diverse Workforce:
 Achieving Racial & Ethnic Equity in Chemistry
 Arlington, VA, September 26, 2007
Thanks to the National Science Foundation, Russell Sage Foundation, John Simon Guggenheim Foundation,
Radcliffe Institute for Advanced Study, and to my collaborators, Alexandra Kalev, Erin Kelly, and Daniel Schrage
                           White Men and Women in Management

                      90

                      80
                                                         White Men
                      70
Percent of Managers




                      60

                      50

                      40

                      30                                White Women

                      20

                      10

                       0
                        71

                        73

                        75

                        77

                        79

                        81

                        83

                        85

                        87

                        89

                        91

                        93

                        95

                        97

                        99

                        01
                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      20
                                                 Year

                                    National Sample of 829 Firms
                                     Percent of Managers




                  0.5
                                          1.5
                                                      2.5
                                                                           3.5




              0
                                  1
                                                2
                                                                       3
       19
         71
       19
         73
       19
         75
       19
         77
       19
         79
       19
         81
       19
         83
       19
         85
       19
         87




Year
       19
         89
       19
         91
       19
                                                           Black Men




         93
       19
         95
       19
         97
                        Hispanic Women
                                                                                 Minority Men and Women in Management




       19
         99
       20
         01
                                        Percent of Group Members Who are Managers, 2002
          18
          16
          14
          12
Percent




          10
           8
           6
           4
           2
           0
               White Male White Female Black Male Black Female Hispanic Male Hispanic      Asian-     Asian-
                                                                             Female       American   American
                                                                                           Male       Female
       Approaches to Diversity
• Establish Responsibility (Theory of Bureaucracy)
   – Diversity Taskforce
   – Diversity Manager


• Combat Bias (Cognitive Psychology)
   – Diversity Training

• Alter Incentives (Agency Theory in Economics)
   – Diversity Evaluations

• Combat Social Isolation (Network Theory)
   – Network Program
   – Mentor Program
                                            Popularity of Diversity Programs


                   40

                   35

                   30
Percent of Firms




                   25

                   20

                   15

                   10

                    5

                    0
                        Diversity   Diversity        Diversity    Diversity    Network    Mentor
                        Taskforce   Manager          Training    Evaluations   Program   Program



                                                National Sample of 829 Firms in 2002
                                   Program Effects on Management Diversity

                  40
                  35
                  30
                  25
Percent Change




                  20
                  15
                  10
                   5
                   0
                  -5
                 -10
                       Diversity     Diversity   Diversity      Diversity    Network   Mentor
                       Taskforce     Manager     Training      Evaluations   Program   Program

                 White Men            White Women            Black Men           Black Women
                 Hispanic Men         Hispanic Women         Asian Men           Asian Women
Which Programs Increase Diversity?
• Establishing Responsibility
   – Diversity Taskforce
   – Diversity Manager

• Combating Bias
   – Diversity Training

• Altering Incentives
   – Diversity Evaluations

• Combating Social Isolation
   – Network Program
   – Mentor Program
       • Another Instance of Establishing Responsibility?
 Part II: Transparency vs. Targeting
Formal, Transparent, Rules
• Pro: Minimizes Discretion, Bias
• Con: Disconnect – Practice Doesn’t Change
Targeted Solutions
• Pro: Pinpoint Problems
• Con: Elicit Backlash
                                           Bureaucratice Hiring and Promotion

                   100
                    90
                    80                                                               Performance Evaluations
                                                                                     Job Description
                    70
Percent of Firms




                                                                                     Internal Job Posting
                                                                                     Salary Classification
                    60
                                                                                     Discharge Guidelines
                    50                                                               Hiring Guidelines
                                                                                     Job Advertisement
                    40                                                               Promotion Guidelines
                    30                                                               Peer Evaluations
                                                                                     Job Ladders
                    20                                                               Job Tests - Managers

                    10
                     0
                    71

                          74

                                77

                                      80

                                            83

                                                  86

                                                        89

                                                              92

                                                                    95

                                                                          98

                                                                                01
                   19

                         19

                               19

                                     19

                                           19

                                                 19

                                                       19

                                                             19

                                                                   19

                                                                         19

                                                      Year                     20
                        Training and Recruitment

                   70

                   60

                   50
Percent of Firms




                                                   Management Training
                                                   Referral Incentives
                   40
                                                   Recruit Minorities to Mgt.
                                                   Recruit Women to Training
                   30                              Recruit Minorities to Training
                                                   Recruit Women to Mgt.
                   20

                   10

                    0
                     71

                     74

                     77

                     80

                     83

                     86

                     89

                     92

                     95

                     98

                     01
                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   20
                          Year
                                      Program Effects on Management Diversity


                 20%



                 15%
Percent Change




                 10%



                 5%



                 0%



                 -5%
                       Job Posting    Promotion      Special       Special    Recruitment       Referral
                                       Ladder     Recruitment - Recruitment - to Training -    Incentives
                                                    Women        Minorities      Women

                       White Men          White Women        Black Men           Black Women
                       Hispanic Men       Hispanic Women     Asian Men           Asian Women
         Part II Conclusions:
      Transparency vs. Targeting

• Transparency Has Small Effects
  – Hiring and Promotion Don’t Change?
  – Bureaucracy May Institutionalize Inequality


• Targeting Increases Diversity
  – Focuses Attention on Change
  – Identifies Candidates
          What Can Academic
           Departments Do?
• What Works in Firms?      • What Doesn’t Work?
  – Assign Responsibility     – Diversity Training
    Taskforces, Diversity
    Managers
                              – Networking
  – Mentoring
                              – Diversity Performance
                                Evaluations
                              – Transparency/
  – Targeted Recruitment
                                Bureaucracy
frank_dobbin@harvard.edu

								
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