Should the headquarters of the U.S. -based multinational promote diversity initiatives in their worldwide subsidiaries? If so, what is the best way to accomplish this?
The headquarters should promote diversity in their worldwide subsidiaries because it can provide a competitive advantage if implemented effectively. The firm’s core values, strength, and businesses depend on how effectively diversity is incorporated into the organization.
The broad definition of diversity, as discussed by Brody and the Diversity Advisory Council, is another reason for the organization to promote diversity in all its subsidiaries. Diversity may include ethnicity when people come from the same race. There will be some form of diversity that can be initiated because individuals have different personalities and backgrounds.
Low retention rate, low career development, and lack of a clear career path for female employees affect all its subsidiaries. It affects subsidiaries in other parts of the world more than the U.S. It is noted that it was not until 1998 that the first woman in a senior management position from outside the U.S. attended the senior management development program. It is a decade later since the program started in 1988. The need for diversity is more intense at the worldwide subsidiaries than in the U.S.
It would appear hypocritical for the headquarters to practice diversity at home and show less concern in the subsidiaries. The best way to accomplish the initiative is to have subsidiaries define diversity in their local context and form programs for affirmative action.
It is better to lead in transformation than to follow. The idea of diversity in the U.S. would soon be imitated in other countries. It can be either by law enforcement or as the best practice. The firm would have additional benefits if it pioneers in implementing the change. The firm can build its brand by implementing diversity measures in all its subsidiaries. If it follows others in implementing diversity, it cannot benefit from the good reputation that such an initiative would have brought.
Do you agree with Brody’s idea to hold the forum? Why or why not? Can you suggest an alternative that would accomplish the same purpose or even more effectively?
The forum was a good idea because it creates a higher level of awareness than any other single event could achieve. It brought publicity and debate among all employees. Some male employees wondered whether it was necessary to hold such a forum and leave them out. It brought out appreciation that the firm recognized that there was a problem with female employees’ career development.
The forum allowed perceptions, attitudes, and opinions to be shaped progressively by the discussion. The top management inclusion allowed the top managers to listen to the opinions of the middle-level female managers directly. The senior women managers had a way of giving their views freely and constructively. Their views are considered constructive because they came up with possible solutions that otherwise would not have come up clearly in other events. Interviews give more information than questionnaires. On the other hand, discussions are more effective than interviews. Brody appears to have used them in different stages.
One alternative that would accomplish the same results is to allow forums to be held at the local levels. Every subsidiary has the autonomy to make independent decisions. It would have been easier to implement the recommendations if they were developed at the local level. Another advantage of holding forums at the local levels is that diversity can be narrowed to specific details that affect the subsidiaries. In the global forum, the definition of diversity is so broad that issues cannot be pinpointed. There are divergent views because employees operate in different regions or countries. Having the forum at the local level will enable everyone to analyze the same picture. Another advantage of holding forums at the local levels is that there will be no need to exclude some members.
One of the modifications that they could have added in the global forum is the inclusion of a psychologist. The psychologist would listen without participating. Later, he would provide her expert judgment in providing explanations on certain behaviors and perceptions. It would help the group formulate better recommendations because they understand the cause of the problem from the source.
Another modification they would have done is to interview employees who had left the company in the past few years. It would have enabled the firm to find out whether the employees left for similar reasons being discussed or other reasons.
What challenges and problems do Brody and Shoemate face in getting their diversity strategy implemented?
One of the challenges will be the autonomy of the subsidiaries to make independent decisions. Brody cannot directly enforce diversity plans.
It will be difficult to improve on every aspect of diversity. Diversity has a broad definition. Locals in every region have their own workforce diversity needs that will need to be identified at the local level.
Senior male employees stereotyping women is another problem. It becomes a challenge when men feel uncomfortable to relate to a female manager. Men who find it difficult may decide to leave the firm. The firm may find it difficult to balance between enhancing gender parity and retaining disappointed male employees.
Another challenge is that it would take a longer period before actual results can be visible. As illustrated in the graphs, between 1996 and 1997, there was a small positive change. One of the factors that will cause a slow pace of improvement is the low number of female employees in middle-level management positions. The global analysis of female employees shows that they constitute only 15% of employees with high potential for career development. The firm has a culture of promoting managers from within. It would take a long period to recruit employees through the diversity enhancement program before they start going up the hierarchy.
Prior to the opening session of the forum, what steps had Brody and her HR colleagues taken to promote diversity efforts throughout the company?
Brody invited outside practitioners to advise the Diversity Advisory Council on ways and methods that are used by leading organizations to make workforce diversity a reality. Prior to that, awareness programs were unable to provide the desired results.
Her department also developed two programs to accelerate the pace of workforce diversity. The Cultural Connection program is an awareness program that targets employees at all levels. Sponsoring Our Success (SOS) is a mentoring program aimed at increasing diversity and career development. INROADS is an internship program that remained in place because it was effective in recruiting minority groups from the education system. Brody’s department also enhanced entry-level diversity initiatives for the recruitment of female employees.
What actions or factors contributed to making this a successful change effort?
The pilot survey made it easier to frame the issues into context. It gave the forum a focal point from which the discussion progressed. Selecting senior women managers from across the globe made them collect views from different parts of the world. The awareness created by the event was greater than previous efforts to make diversity common knowledge in the organization. The involvement of the top management team allowed them to hear the female managers raise issues directly. The openness of the women to discuss matters that affect them differently from men made it easier to understand some of the causes of low women retention. The development of recommendations made the forum a constructive event. The assurance given by the top managers to support the plan for the implementation of proposed changes made the entire process successful.
What else should Brody and Bestfoods do to institutionalize the changes begun at Women’s Global Leadership Forum?
The firm needs to develop an organizational culture that dissuades men from stereotyping women. An organizational culture where men are comfortable to report to a woman in a management position is essential. The firm can increase the number of women through the recruitment process in critical areas. Most of the women at Bestfoods are employed in clerical work. It would be a challenge to recruit female employees from another organization for management positions. However, the firm can try the method with a few positions. New managers may provide a different view of the industry that may create innovative services. Brody should allow the subsidiaries to define diversity in their own contexts. They should be allowed to hold their own forums at their local levels to develop more locally-focused plans. The firm can sponsor women with a high potential for growth to upgrade their education level before promoting them. Measurement of improvement through the firm’s balance scorecard should ensure that real change occurs. The firm should ensure that subsidiary managers support the initiative at their local levels.