Managing Workforce Diversity at IBM - Example

Running Head: Managing Workforce Diversity at IBM Student’s Name: Instructor’s Name: Course Code and Name: University: Date Submitted: Managing Workforce Diversity at IBM 1. Short background on IBM The history of IBM goes further back than the development of modern computers. Originally, IBM started as a Tabulating Machine Company that was founded by Herman Hollerith 1896 (Bashe, 2000). The company specialized in data processing equipment that relied wholly on the punch card. The punch cards formed the foundation for many generations of equipment that one day would be known as IBM. Three companies, namely Time Recording Company, The Computing Corporation and Tabulating Machine Company all came together to form a single entity, which ventured into the Canadian market under the name International Business Machines Co. Limited in 1917. Thomas Watson became the company’s general manager, and an essential player in what came to be known later as IBM. During the 1950s, IBM emerged as the primary contractor in the development of computers for the automated systems of the United States Air Force. In the course of working an interceptor control system known as SAGE, IBM gained information that was critical to the work that was being performed at the Massachusetts Institute of Technology. The information spearheaded various advancements for IBM by providing insights into digital data transition, light guns, algebraic computer language, digital data transition, and digital to analogue conversion. In the 1980s, IBM started consolidating its mainframe business as well as expanding its mainframe technology, particularly ESA/390 and S/390. IBM embarked on the on the practice of continually converting its already large rental base of mainframes to lease arrangements. This strategy was aimed at making IBM’s profits and revenues appear stronger than they really were. The IBM PC was developed by a team known as ‘Project Chess’ and introduced to this world on 12 August, 1981. Initially, these systems were not affordable and were primarily meant for the business sector. Often, these PC was bought by the middle management since they could easily perceive their value in business. IBM has widely become known for its domination in the computer business. However, the company also plays many major roles in other industries. Today, the company’s success is mainly in the form of systems that are easily applicable to both businesses and personal use. 2. What is workforce diversity? Workforce diversity refers to the ways in which people in a working environment are similar and different from each other (Hartel & Fujimoto, 2006). In addition to all the characteristics that are protected by law, some other commonly cited include education, background, personality, language skills, work role and sexual orientation. In general terms, the term ‘workforce diversity’ entails the policies and practices aimed at including people within the workforce, who are regarded in a way, as different from those who are in the prevailing constituency (Hartel & Fujimoto, 2006). Workplace diversity is one of the greatest assets in the information age. No company can succeed without attracting and retaining the best employees that the market has to offer. There are two main pieces of legislation that have set the groundwork for the creation of workplace diversity and the support for an inclusive workplace. The first legislation is known as The Employment Equity Act. This Act ensures that there are improved job opportunities for four main groups of people: women, indigenous people, people with disabilities and members of visible minorities. The second piece of legislation is the Human Rights Act. This act entitles all people equal opportunities with no regard to their color, race, ethnic or national origin, age, family religion, marital status, sex, disability, pardoned conviction, or sex orientation (Stockdale, 2004). Two main types of diversity that determine the outcomes of organizations are workplace diversity and cultural diversity (Hartel & Fujimoto, 2006). Workplace diversity entails the different ways in which people are in terms of their personality, intellectual and social background, experience, and interests. Cultural diversity is clearly discernible in the cultural setting within which a company operates. IBM Australia operates in a cultural setting that is different from IBM USA. Hofstede came up with five cultural dimensions while studying national work-related issues. These dimensions include small vs. large power distance, individualism vs. collectivism, masculinity vs. femininity, and weak vs. strong uncertainty avoidance (Hartel & Fujimoto, 2006). 3. How and why people respond to Diversity People respond to diversity by establishing ground rules for behavior and participation. They also encourage learners to succeed in expressing themselves. Moreover, a modeling a positive attitude towards differences always achieves positive results in diverse environments. The multi-sensory learning materials that people use while adjusting to diversity also help out a great deal as long as they are relevant. The similarity attraction paradigm applies best in contexts where individuals are facing cognitive complexity (Cunningham, 2007). The paradigm is best assessed through the assessment of similarity-dissimilarity variables. In this context, multidimensional stimulus can be relied on in efforts to bring about efficiency in a diverse workplace. The social identity theory brings a new perspective in the theoretical analysis of issues relating to workplace diversity. This theory proposes that a person has several selves that perfectly correspond to increasingly widening circles of membership in groups. Different social contexts trigger a person to feel, think and act based on his personal, family or national ‘self level’. In other words, there is always an internalized group membership that is based on an individual’s perception of what defines the concept of ‘us’ (Luff, 2000). The social categorization theory addresses variation in self categorization. The meaning of self categories is assessed in terms of level, content, and meaning (Mack, 2001). Consequences and antecedents such as variation are used to describe workplace diversity. Inter-group discrimination in this theory is described in terms of the need for self-categorization and positive social identity. Higher order group behaviors are explained in terms of shifts in each person’s personal identity. Each of these theories can lead to discrimination depending on the interpretation that is derived. The similarity attraction paradigm, for instance, can lead to discrimination by drawing too much attention to the ways in which people’s attributes are similar or dissimilar. In the social identity theory discrimination can be nurtured on the basis of the distinctions made between one’s inherent personality and social identity, thereby bringing about stereotypes. The social categorization theory, on the other hand, puts too much emphasis on social categorizations. People who do not seem to fit into any of the prescribed categories may be discriminated against. 4. Effects of diversity in the workplace IBM operates in all the nine time zones within 170 countries, and Australia is just one of these countries. Therefore, IBM is used to operating in environments of diversity. There are many positive effects of diversity. For IBM, workplace diversity contributes greatly to the bringing on board of different abilities, experiences, points of views, and creative aspects. This diversity, when harnessed well, brings about innovation. In the case of Australia, for instance, many new products and support networks have been undertaken successfully as a result of positive use of diversity (McCarthy, 2004). At IBM Australia, diversity is a great strength, since it enables the company to bring out the best ideas and talents together in efforts to solve clients’ problems. Work teams and clients span across the globe and many employees get a chance to experience working with people of diverse cultures and countries. Learning programs are often offered in order to ensure that employees are sensitive to the cultural differences that exist in the workplace. The diversity programs adopted combine both ‘push and pull’ strategies. Formalized training and policies such as floating cultural holidays offer employees with great opportunities of learning about diversity issues. However, workplace diversity has some negative effects as well. For awareness on workplace diversity to be created, diversity education is necessary. At IBM, this has implications for both general staff awareness and individual professional development. In most cases, it is difficult for these two aspects to be addressed. It is virtually impossible for employees’ individual professional needs to be catered for in the context of workplaces that are as diverse as IBM’s (McCarthy, 2002). 5. Diversity management Diversity management is a process aimed at creating and maintaining a positive work environment; an environment where the differences and similarities of individuals are highly valued, such that each individual can reach his potential and maximize his contributions to the organization’s strategic goals (Townsend, 1998). Diversity management is human resource function that necessitates the creation of an effective program for promoting recognition and respect for each person’s individual peculiarity among a group of workers. The idea is to ensure that employees are comfortable while working in a workplace where there is diversity in the form of background, gender, race, and sexual orientation. A core component of diversity management is leadership and workgroup management. Workgroup management entails the ability to manage conflicts, emotions, and dissimilarity openness among employees. It entails the underlying principle, which has a lot to do with acceptance. The management tasks in this case are always aimed at ensuring that people recognize that no person is like the other. Instead of being intimidated and prejudiced by these differences, employees are always encouraged to accept the reality that people interests will always be diverse, owing to the diversity in values, physical, and emotional characteristics. Managing dissimilarity openness is a crucial aspect of diversity management. It entails the creation of the notion that the dissimilarity that exists in the workplace does not necessarily have to hamper productivity or generate conflicts. Instead, this diversity can function as a helpful attribute that promotes the attainment of an organization’s goals and objectives. As the workplace becomes increasingly diverse, employees are exposed to new cultural experiences. Sensitivity to new cultural knowledge is a good attribute that should be nurtured by diversity managers. These managers are always required to promote a workplace environment that is welcoming, where communication takes place freely. In such a context, a variety of latent talents and skills that are inherent in the employees’ respective cultures can be harnessed and used effectively. 6. Diversity-oriented HRM IBM encounters many challenges in ensuring that its HRM is diversity oriented. The company has set up internal diversity standards that are always adhered to whenever recruitment processes are being undertaken. The company works in close partnerships with stakeholders outside the company, mainly through public relations departments in order to have access to talented, culturally diverse workforce. Before recruitment and selection activities are carried out, employees are informed about the diverse environments in which they will be required to work. Open training and development provides an opportunity for companies to induct their new recruits into the diverse workplace (Cukier, 1996). At IBM, training and development opportunities are available for employees on issues of diversity. The success of these programs is assessed in close reference to client feedback, staff satisfaction, retention rates and the new contracts that are entered into (Childs, 2005). Quantifiable results are then made available within the company’s premises. Currently, the company is in the process of reviewing anecdotal feedback from various business units who come into contact with the staff members who have been recently training using the workplace diversity program. Open performance evaluation tasks are often carried out for purposes of appraisal, promotion, and compensation. These efforts are reliant on reliable data, which can be obtained through quantifiable research if possible. For purposes of appraisal, IBM has developed mechanisms that make it possible for diversity champions to be identified. These champions become a source of motivation for other employees, who work hard in order to be favorably apprised, ultimately attaining the position of diversity champion. All IBM’s HRM activities: hiring, promotion and compensation are always undertaken in close reference to diversity management policies, that is, without regard to religion, color, gender identity, national origin, sexual orientation, disability or age. The design and administration of IBM’s benefit plans always comply with the applicable laws, including the ones that deal with equal opportunity. By getting marketplace recognition in terms of facilitation of and support of diversity in promotion and remuneration, IBM sets a perfect example for other successful corporations to follow. The recognition has tended to come from the marketplace itself, as indicted across a wide spectrum of publications and organizations. The main categories of diversity where IBM’s HRM practices are recognized include Asians, Blacks, Lesbian, Gay, Transgender, and Bisexual, mature adults, Hispanic/Latino, minorities, women, Native Americans, and work/life. Many local, national, and international organizations have gone beyond the legal requirements in order to accommodate as many diversity-related Best Practice Initiatives as they can. IBM is one of these organizations. The company has introduced an entry point program that initiates the recruitment of college students who have disabilities for various internships and summer jobs (The Law Society of Upper Canada, 2004). The goal of this undertaking is to hire them on a full-time basis upon successful completion. Another initiative is Project Able Program, which is undertaken in partnership with various staffing agencies and community services. This program is aimed at providing a focal point through which persons with disabilities can be hired. 7. Issues related to workforce diversity Many changes in work and employment patterns keep taking place in the today’s highly globalized world. The changes in employment patterns that have taken place at IBM have many diversity-related implications. One indicator of the changing employment patterns at the company is the recently introduced Extreme Blue Program. This program is an incubator for technology, talent, and business innovation. One participates in a small team with an aim of conceiving and delivering technology, business plans and to go to market strategy for a business opportunity that is emerging. All extreme project teams tend to mix technical and business disciplines with diverse experience from both undergraduate and graduated interns. This marks a switch from the traditional practices, whereby employers used to rely solely on the existing job market in their recruitment efforts. The shift now appears to be towards nurturing business and technology through diversity-based talent-saturated teams. There are many laws that provide for issues of religious beliefs. When organizations penalize or withhold the salary of employees from the ‘minority’ religions, they are in essence penalizing them for not belonging in the mainstream religions. Under universally acceptable norms and practices, such employees should not be forced to work during their vacation time in order to make up for the time spent in religious activities and festivities. Employers have many options of accommodating this situation. First he may grant the employee a day off without interfering with his salary or any agreed-upon vacation benefits. Secondly, he may create an allowance for flexible scheduling. For instance, the employee may make up for the time taken during religious, cultural, traditional, or political practices by extending his workday or by working during those days set aside by the organization as observance days, for instance, Thanksgiving. The IBM Corporation maintains the quality of work-life as well as religious observance through carefully designed mechanisms. For instance, the company has recently included a policy of personal choice of holiday, whereby each employee is accorded an opportunity for structuring vacation benefits to his needs. For work-life balance purposes, IBM has introduced the Individual Work Schedules Program. This one gives employees a choice of beginning their working day four hours earlier or later. References Bashe, C. (2000). IBM’s Early Computers. Massachusetts: MIT Press. Childs Jr., T. (2005). Managing workforce diversity at IBM: A global HR topic that has arrived. Human Resource Management, 44, No. 1, 73–77. Cukier, W. (1996). “Cultural Diversity and Group Decision Support Systems, Administration and Information Management”, in Szewczak, E. (Ed.). The Human Side of Information Technology Management. Harrisburg, PA: Idea Group Publishing. Cunningham, D. (2007). Diversity as a Competitive Strategy in the Workplace. Journal of Practical Consulting, 1(2), 51-55. Hartel, C. & Fujimoto, Y. (2006). Human Resource Management (2nd Ed.). Sydney: Macmillan. Luff, P. (2000). Workplace studies: recovering work practice and informing system design. Cambridge: Press syndicate of the University of Cambridge. Mack, R. (2001). Knowledge portals and the emerging digital knowledge workplace. IBM Systems Journal, 40(4), 925-955. McCarthy, J. (2004). Diversity as Strategy, Harvard Business Review. Retrieved October, 13, 2010, from http://www.tedchilds.com/files/HBRDiversityStrategy04.pdf McCarthy, J. (2002). An architecture of diversity for commonsense reasoning. IBM Systems Journal, 41(3), 530-539. Stockdale, M. (2004). The psychology and management of workplace diversity. Victoria: Blackwell Publishing. The Law Society of Upper Canada (2004). Accommodation of Creed and Religious Beliefs, Gender Related Accommodation and Accommodation for Persons with Disabilities: Legal Developments and Best Practices. Toronto: Equity Initiatives Department. Townsend, A. (1998). Virtual Teams: Technology and the Workplace of the Future. The Academy of Management Executive, (1993-2005), 12(3), 17-29. Read More