Question

Managing Diversity for Success:
The Case of IBM
When you are a company that operates in over 170 countries with
a workforce of over 398,000 employees, understanding and
managing diversity effectively is not optional—it is a key business
priority. A company that employs individuals and sells products
worldwide needs to understand the diverse groups of people that
make up the world.
Starting from its early history in the United States, IBM Corporation
(NYSE: IBM) has been a pioneer in valuing and appreciating its
diverse workforce. In 1935, almost 30 years before the Equal Pay
Act guaranteed pay equality between the sexes, then IBM
president Thomas Watson promised women equal pay for equal
work. In 1943, the company had its first female vice president.
Again, 30 years before the Family and Medical Leave Act (FMLA)
granted women unpaid leave for the birth of a child, IBM offered
the same benefit to female employees, extending it to one year in
the 1960s and to three years in 1988. In fact, the company ranks in
the top 100 on Working Mother magazine’s “100 Best Companies”
list and has been on the list every year since its inception in 1986.
It was awarded the honor of number 1 for multicultural working
women by the same magazine in 2009.
IBM has always been a leader in diversity management. Yet, the
way diversity was managed was primarily to ignore differences and
provide equal employment opportunities. This changed when Louis
Gerstner became CEO in 1993.
Gerstner was surprised at the low level of diversity in the senior
ranks of the company. For all the effort being made to promote
diversity, the company still had what he perceived a masculine
culture.
In 1995, he created eight diversity task forces around demographic
groups such as women and men, as well as Asians, African
Americans, LGBT (lesbian, gay, bisexual, and transgender)
individuals, Hispanics, Native Americans, and employees with
disabilities. These task forces consisted of senior-level, well
respected executives and higher-level managers, and members
were charged with gaining an understanding of how to make each
constituency feel more welcome and at home at IBM. Each task
force conducted a series of meetings and surveyed thousands of
employees to arrive at the key factors concerning each particular
group. For example, the presence of a male-dominated culture,
lack of networking opportunities, and work-life management
challenges topped the list of concerns for women. Asian
employees were most concerned about stereotyping, lack of
networking, and limited employment development plans. African
American employee concerns included retention, lack of
networking, and limited training opportunities. Armed with a list of
priorities, the company launched a number of key programs and
initiatives to address these issues. As an example, employees
looking for a mentor could use the company’s Web site to locate
one willing to provide guidance and advice. What is probably most
unique about this approach is that the company acted on each
concern whether it was based on reality or perception. They
realized that some women were concerned that they would have to
give up leading a balanced life if they wanted to be promoted to
higher management, whereas 70% of the women in higher levels
actually had children, indicating that perceptual barriers can also
act as a barrier to employee aspirations. IBM management chose
to deal with this particular issue by communicating better with
employees as well as through enhancing their networking
program.
The company excels in its recruiting efforts to increase the
diversity of its pool of candidates. One of the biggest hurdles
facing diversity at IBM is the limited minority representation in
fields such as computer sciences and engineering. For example,
only 4% of students graduating with a degree in computer
sciences are Hispanic. To tackle this issue, IBM partners with
colleges to increase recruitment of Hispanics to these programs. In
a program named EXITE (Exploring Interest in Technology and
Engineering), they bring middle school female students together
for a weeklong program where they learn math and science in a
fun atmosphere from IBM’s female engineers. To date, over 3,000
girls have gone through this program.
What was the result of all these programs? IBM tracks results
through global surveys around the world and identifies which
programs have been successful and which issues no longer are
viewed as problems. These programs were instrumental in more
than tripling the number of female executives worldwide as well as
doubling the number of minority executives. The number of LBGT
executives increased sevenfold, and executives with disabilities
tripled. With growing emerging markets and women and minorities
representing a $1.3 trillion market, IBM’s culture of respecting and
appreciating diversity is likely to be a source of competitive
advantage.
DISCUSSION QUESTIONS
1. IBM has been championed for its early implementation of
equality among its workforce. At the time, many of these
policies seemed radical. To IBM’s credit, the movement
toward equality worked out exceptionally well for them. Have
you experienced policy changes that might seem radical?
Have these policies worked out? What policies do you feel are
still lacking in the workforce?
2. If you or your spouse is currently employed, how difficult
would it be to take time off for having a child?
3. Some individuals feel that so much focus is put on making the
workplace better for underrepresented groups that the
majority of the workforce becomes neglected. Do you feel this
was the case at IBM? Why or why not? How can a company
ensure that no employee is neglected, regardless of
demographic group?
4. What types of competitive advantages could IBM have gained
from having such a diverse workforce?

Answer 1

1. IBM focused on equality and tried to be radical in equal women and men pay ratios, increasing the women workforce, they even gave changes to the minorities which were lacking the support from the society. IBM did its best to reform the thinking of the society. And tried to fulfill the needs of all the gropus. They even supported motherhood and provided them with unpaid leaves.

Company was ranked among the top 100s for supporting working women.

They started hiring LGBT community members to spread equality among the society. They sorted out the issue of hispanic minorities. Besides supporting women IBM should have also paid a tribute to the men in the workforce cause it is the matter of equality so they could feel demotivated.

2. If me and my spouse is working together it would not be so difficult to take time off for the child cause IBM is providing unoaid leaves for women for the birth of a child. So the company would support over this as per their policy.

3.Some of the employees might have felt so that they were neglected in the process but then again the minorities that were being supported have never got a good support from the society so it was IBM that was letting them feel that conservative thinking doesn't matter and talent is always respected.As a company we cannot take care of all the masses in an equal way. But this can be avoided by making the workplace a friendly place. The salary and other benefits provided to all the employees should be more or less similar to keep an equality in the employees. But as far as maternity leaves are considered all men should repsect it cause it is the matter of alife and respecting women.

4. Since IBM didn't have a simple workforce or as per other companies it had a good competitive advantage over other companies cause IBM took employees worldwide and they didn't hire the employees as per the criteria. They only hired brilliant brains. So having such a brainy workforce will deifintely give a company its competitive advantage cause the workforce will think in diverse directions and they will do the best brain storming and think of several new ideas thta other company wokrforce cannot.