Managing Diversity for Success: The Case of IBM – Organizational Behavior

Organizational Behavior (best to view in online version) 2.5 Managing Diversity for Success: The Case of IBM – Organizational Behavior (umn.edu)Links to an external site. Questions to address: 1. What factors do you believe prompted IBM to focus on driving diversity within their organization? 2. Eight diversity task forces were created back in 1995. Today, these groups are also known as: affinity groups, employee resource groups (ERGs), and sometimes business resource groups (BRGs). Explain the difference between these three types of groups and share which group the task forces at IBM resemble, based on how they leverage the groups at IBM. Reference this link: https://thediversitymovement.com/what-is-employee-resource-group-answers-to-5-common-questions-about-ergs-brgs-affinity-groups/Links to an external site. 3. Today, many people will argue that IBM put too much of a focus on making the workplace better for underrepresented groups that the majority of the workforce became neglected. Do you feel this was the case at IBM? Why or why not? How can companies ensure that no employee feels neglected or left out, regardless of their demographic group? (NOTE: If you work at a company who drives diversity and has groups to drive inclusion, share how they have made everyone feel welcomed.) 4. What competitive advantages do companies gain from having groups to help drive a diverse workforce?

Sample Solution

Here's a breakdown of the factors prompting IBM to focus on diversity and the implications:

1. Factors Prompting IBM's Focus on Diversity:

Several factors likely influenced IBM's decision:

Market Reach: A diverse workforce allows IBM to better understand and cater to a broader customer base.
Diverse perspectives can lead to innovative solutions.

1. The diversity dividend: How inclusive businesses gain competitive advantage - IBM Blog

2. How Diversity Can Drive Innovation - Harvard Business Review
Talent Acquisition: Focusing on diversity expands the talent pool, allowing access to a wider range of skilled individuals.

Full Answer Section

Employee Engagement: A diverse and inclusive workplace fosters a sense of belonging and higher employee engagement, leading to improved performance.
Global Competitiveness: In a global market, a diverse workforce allows IBM to compete effectively across international borders.
Social Responsibility: Workplace diversity aligns with ethical values and promotes a positive corporate image.

Affinity Groups vs. Employee Resource Groups (ERGs) vs. Business Resource Groups (BRGs):

These terms are often used interchangeably, but subtle differences exist:

Affinity Groups: Formed around shared personal characteristics like race, gender, or sexual orientation. They offer social support and networking opportunities.
Employee Resource Groups (ERGs): Sponsored by companies, ERGs are similar to affinity groups but focus on professional development and career advancement for underrepresented groups.

Business Resource Groups (BRGs): These typically focus on a specific business function and may include a diverse range of employees. Their primary focus is business-oriented and may include diversity within the specific business function.

Based on the case study, IBM's task forces most closely resemble ERGs. They were established to provide support and career development for underrepresented groups.

The Case of Neglecting the Majority Workforce:

There isn't enough evidence in the case study to definitively say IBM neglected the majority workforce. However, it's a concern worth addressing. Here's how companies can ensure inclusivity:

Diversity & Inclusion (D&I) Programs: Develop D&I initiatives that focus on creating a welcoming environment for all employees, regardless of background.
Unconscious Bias Training: Educate employees on recognizing and mitigating unconscious bias to ensure fair treatment for everyone.
Open Communication: Foster an environment where employees feel comfortable voicing concerns about potential neglect or exclusion.
Data-Driven Approach: Regularly survey employees to assess the effectiveness of D&I initiatives and identify areas for improvement.

Example (if applicable): (Replace with a personal experience from your workplace, if you have one)

Competitive Advantages of Diverse Workforces:

Companies with diverse workforces gain several competitive advantages:

Enhanced Creativity: Diverse teams bring a wider range of perspectives, leading to more innovative ideas and solutions.

Improved Problem-Solving: Diverse teams approach problems from different angles, leading to more effective solutions.

Stronger Decision-Making: Diverse teams can consider a broader range of information, leading to better-informed decisions.

Enhanced Brand Reputation: A diverse workforce sends a message of inclusivity and attracts top talent.
Better Customer Understanding: A diverse workforce can better understand and serve diverse customer segments.

By promoting a diverse and inclusive workplace, companies can gain a significant competitive edge in today's global market.

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