Question: What are the key factors in managing diversity and inclusion successfully in large international organizations? Which companies are best in class and what does that entail

Park, Hye Joon

Shin, Hae Young

English

Question: What are the key factors in managing diversity and inclusion successfully in large international organizations? Which companies are best in class and what does that entail?What_are_the_key_factors_in_managing_diversity_and_inclusion_successfully_in_large_international_organizations__1_.pdf: 33950 downloads, before Oct. 1, 2020

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What are the Key Factors in Managing Diversity and Inclusion Successfully in Large International Organizations?

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What are the Key Factors in Managing Diversity and Inclusion 
Successfully in Large International Organizations? 
Hae Young Shin 
Cornell University 
Hye Joon Park 
Cornell University 
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What are the Key Factors in Managing Diversity and Inclusion Successfully in 
Large International Organizations? 
Abstract 
Question: What are the key factors in managing diversity and inclusion successfully in large international 
organizations? Which companies are best in class and what does that entail? 
Keywords 
human resources, diversity and inclusion, large firms, diversity, inclusion, international organizations 
Comments 
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Shin, H. Y. & Park, H. J. (2013). What are the key factors in managing diversity and inclusion successfully 
in large international organizations? Retrieved [insert date] from Cornell University, ILR School site: 
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Cornell University ILRHR 6640: 2013-03-29 
Hae Young Shin & Hye Joon Park 
 
                    Executive Summary                              
         The cited references are listed in order of appearance in the Bibliography 
 
Question                                                                     
What are the key factors in managing diversity and inclusion successfully in large 
international organizations? Which companies are best in class and what does that entail? 
 
1. Introduction: Benefits from Diversity and Inclusion                                         
1International companies would benefit from the wealth of available business knowledge, 
differing experiences, and global perspectives that staff from diverse backgrounds can 
contribute. 2Of the 2006 DiversityInc Top 50 companies for diversity, these 42 companies 
had a 24.8% higher return than the Standard & Poor's 500 when measured over 10 years with 
dividends reinvested. Therefore, the ability to effectively manage diverse workforces in 
organizations is crucial for success in global business environments. I would like to find the 
success factors through “The Academic Approach” and “The Practical Approach.”  
 
2. The Academic Approach: The key factors and general directions for managing diversity      
The international company must acknowledge that diversity is not limited to only identifying 
employee differences based on nationality and ethnicity. We need to consider other aspects of 
diversity as well, so as to understand and appreciate the complexity of human capital 
composition. Also, we will suggest general directions in which to manage diversity 
successfully in international organizations. 
1) What is diversity within organizations?:The categories for diversity can be classified 
into demographic diversity, organizational diversity and socio-cognitive diversity. 
• 3Demographic diversity such as age, gender, ethnicity, and nationality. These are 
considered to be readily detectable attributes that can be easily characterized in particular 
individuals.  
• 4Organizational diversity. Diversity also involves the organizational context that adds to 
the diverse perspectives of the group dynamism such as occupation and functions of the 
employees, seniority in the firm, and hierarchical ranking within the organization. 
• Socio-cognitive diversity, which includes cultural and religious values, beliefs, 
knowledge level, and personality characteristics. (Appendix: Table 1) 
2) Workforce Diversity and Strategic International Human Resource Management: 
Policies and practices in diversity management should ensure that there is continuous 
learning and adaptation in organizations. 5Alder strongly emphasized cultural synergy as an 
approach in managing workplace diversity. 
• At the macro-level of the organization system, management needs to develop 
organizational policies and formal education programs that: create awareness and 
increase social consciousness; emphasize the importance of organizational culture, 
management responsibility and accountability; actively ensure the incorporation of 
diversity management as an integral part of the overall organizational development and 
change process; empowerment of management and employees so that they are more 
involved in the process of institutionalizing diversity; review corporate infrastructure, 
systems and policies that promote diversity; and create internal support systems that 
encourage diversity of thought and actions of staff from different socio-cultural 
backgrounds. 
• At the micro-level of the organization, 6management needs to integrate and build upon 
the values and beliefs of the various members of the work team, and 7develop group 
strategies that produce better results and solutions, which are more innovative than the 
Cornell University ILRHR 6640: 2013-03-29 
Hae Young Shin & Hye Joon Park 
 
single contributions of individual members. 
 
3. The Practical Approach: The Best Practices for International Companies                                                             
There are leading companies for managing diversity and inclusion successfully. (Appendix: 
Table 2). In order to achieve their objectives for diversity, its common strategies are the 
establishment of formal councils and the implementation for diversity training programs. I 
will show some of best practices for the management of diversity and inclusion.  
1) 8Dell: Dell believes that diverse workforces enable organizations to understand and better 
respond to the needs of its equally diverse customer base. Dell identified three critical 
business imperatives for diversity. As a result, Dell has created its own global culture, 
enabling it to cope successfully when there are regional changes in culture and society. 
• Mandatory annual online training programs: Dell has introduced a number of internal 
diversity training programs. These initiatives vary from one-off workshops on a 
particular diversity issue to online training tools which help employees understand Dell’s 
diversity framework and support the business case.  
• Creating a framework for managing work-life effectiveness: Dell has found that 
flexible working has had a real impact on morale, giving employees a feeling of being 
empowered and trusted to manage their own workloads. Also, ensuring a work-life 
balance has helped Dell's high-potential female employees achieve a much greater 
success in juggling work and family commitments.  
• Management buy-in for diversity programs have built a more flexible organization 
with stable, global diversity initiatives now in place. 
2) 9Toyota: The commitment to diversity is part of every area of the business. Everything 
Toyota does is rooted in two fundamental principles: respect for people and continuous 
improvement.  
• The Toyota 21st Century Diversity Strategy in 2001; The multi-billion dollar strategic 
investment encompasses human resources, minority advertising, dealership development, 
community support and strategic oversight. As a result, Toyota has increased the number 
dealerships owned by ethnic minorities and women, as well as its philanthropic giving to 
organizations that serve diverse populations. 
• The company’s external Diversity Advisory Board, which is comprised of some of the 
America's most recognized leaders in the fields of diversity, public policy and community 
relations. The Toyota Diversity Advisory Board's main purpose is to bring expert outside 
perspectives to help them shape and maintain their commitment to diversity. 
3) 10,11Coca-Cola Company: its global diversity mission is that they will mirror the rich 
diversity of the marketplace they serve. 
• 12Diversity Councils and Business Resource Groups: Diversity advisory councils have 
roundtable discussions with associates and Business Resource Groups, to implement and 
maintain programs that help assure the success in embracing the similarities and 
differences of people, cultures and ideas. The Councils make recommendations for senior 
management on how to advance the Company's efforts towards achieving their diversity 
goals. Additionally, Business Resource Groups provide their associates with 
opportunities to connect with colleagues who share similar interests and backgrounds.  
• Diversity Education and Training: Various diversity education program efforts have 
moved from minimizing conflict to strengthen their ability to amplify, respect, value and 
leverage their differences in order to drive sustainable business results. Three pillars of 
diversity education are Diversity Training, a Diversity Speaker Series and Diversity 
Library. Ongoing diversity training helps drive employee engagement, and create a work 
environment that visibly values and leverages diversity and accelerates productivity. 
Cornell University ILRHR 6640: 2013-03-29 
Hae Young Shin & Hye Joon Park 
 
Appendix 
 
 
Table 1. 1Construct Domain of Diversity  
 
 
 
 
 
 
 
 
 
                                           
 
 
 
 
Cornell University ILRHR 6640: 2013-03-29 
Hae Young Shin & Hye Joon Park 
 
 
2Table 2. America’s Top Organizations for Multicultural Business Opportunities in 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Choy, William K W, Singapore Management Review; 2007;29,2; Globalisation and 
Workforce Diversity: HRM Implications for Multinational Corporations in Singapore. 
2DiversityBusiness;http://www.diversitybusiness.com/Resources/DivLists/2013/DivTop50/20
13Div50C.htm 
 
 
                                           
 
Cornell University ILRHR 6640: 2013-03-29 
Hae Young Shin & Hye Joon Park 
 
Bibliography 
                                           
1 Choy, William K W, Singapore Management Review; 2007;29,2; Globalisation and 
Workforce Diversity: HRM Implications for Multinational Corporations in Singapore. 
2 G. Moran 2006; The business case for diversity (5th edition), DiversityInc, Newark, NJ 
3 Cox, 1991; Cox and Blake, 1991; Jackson and Ruderman, 1995) 
4 Jackson SE and MN Ranerman, 1995. Diversity in Work Team; Researching Paradigms for 
a Changing workplace. Washington, DC: American Psychological Association 
5 Alder NJ 1980. “Cultural Synergy: The management of Cross-cultural Organizaions”. In 
WW Burke and LD Goodstein (eds). Trends and Issues in OD: Current Theory and Practice. 
San Diego, CA: University Associate  
6 Maznevski ML, 1994. “Understanding Our Differences: Performance in Decision-Making 
Group with Diverse Members.” Human Relations, Vol 47 No 5, pp. 531-552  
7 Maznevski ML, 1995. “Process and Performance in Multicultural Teams.” Cited in N Adler 
(2002). International Dimensions of Organizational Behaviour. 4th edition, Cincinnati, Ohio: 
South-Western College Publishing Co. 
8 Lowther, Rechard; strategic HR review; Embracing and managing diversity at Dell; 
Sep/Oct 2006; 5;6 ABI/INFORM Complete p.16 
9 Toyota; http://www.toyota.com/about/diversity/ 
10 Coca Cola; http://www.coca-colacompany.com/our-company/diversity/ 
11 Dobbin F, Kalev A, and Kelly E, 2007. “Diversity Management in Corporate America.” 
Contexts, Vol 6 No 4, pp. 21-27  
12 DiversityInc; http://www.diversityinc.com/the-coca-cola-company/ 


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What are the Key Factors in Managing Diversity and Inclusion Successfully in Large International Organizations?

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