The Link Between Diversity and Equality Management Practice Bundles and Racial Diversity in the Managerial Ranks: Does Firm Size Matter?
Diversity and equality management (DEM) has been a legal requirement since the passage of the Civil Rights Act of 1964. However, in recent years, organizations and leaders have realized the value of a diverse workforce and the competitive advantage the diversity brings. Researchers have suggested that DEM practices such as enhancing the cultural competence of employees, and increasing the inclusion of diverse groups, can provide firms with a competitive advantage (Richard, Roh, & Pieper, 2013, p. 217). Specifically, diversity management is a strategy a firm can use to capitalize on the opportunities that …show more content…
Richard, Roh, & Pieper (2013) determined the firms with average racial diversity in managerial ranks who implement an additional minority based DEM practice would translate into a 5-6 percent increase in the racial diversity of management. Their study also concluded that for a one standard deviation increase (36.8 %) of managers who are held accountable for diversity goals resulted in a four percent increase in the racial diversity index of a firm with an average level of racial diversity (Richard, Roh, & Pieper, 2013, p. 227). Small firms with an average level of racial diversity will increase their racial diversity by approximately 11.25 percent with each standard deviation increase in minority opportunity based DEM practices (p. 227). Large firms would only see an increase of 1.25 percent (p. 227). Similar increases were found for the manager accountability DEM practices in small firms (7.18%) and large firms on (1.56%) for increasing accountability practices one standard deviation (p. …show more content…
The study concludes the that companies who want a competitive advantage should develop formal diversity programs to enhance the racial diversity in management to facilitate the competitive advantage. However, the data used to conduct the study was from 2002-2003 and were based on data obtained from US firms participating in Fortune magazine’s managing diversity questionnaire with a response rate of 14%. The determining factor for data selection was the fact that these firms went through an “extensive, rigorous evaluation process.” It was stated they were required to disclose their diversity practices at the headquarters level and approximately 40 percent of the firms used in the sample were listed in the Diversity Elite list (50 Best Companies for Minorities). Although the authors checked if response bias existed, 50 of the 137 firms were listed on a top 50 list for best companies for diversity. This would scream bias to an analyst reviewing the
Diversity and equality management (DEM) has been a legal requirement since the passage of the Civil Rights Act of 1964. However, in recent years, organizations and leaders have realized the value of a diverse workforce and the competitive advantage the diversity brings. Researchers have suggested that DEM practices such as enhancing the cultural competence of employees, and increasing the inclusion of diverse groups, can provide firms with a competitive advantage (Richard, Roh, & Pieper, 2013, p. 217). Specifically, diversity management is a strategy a firm can use to capitalize on the opportunities that …show more content…
Richard, Roh, & Pieper (2013) determined the firms with average racial diversity in managerial ranks who implement an additional minority based DEM practice would translate into a 5-6 percent increase in the racial diversity of management. Their study also concluded that for a one standard deviation increase (36.8 %) of managers who are held accountable for diversity goals resulted in a four percent increase in the racial diversity index of a firm with an average level of racial diversity (Richard, Roh, & Pieper, 2013, p. 227). Small firms with an average level of racial diversity will increase their racial diversity by approximately 11.25 percent with each standard deviation increase in minority opportunity based DEM practices (p. 227). Large firms would only see an increase of 1.25 percent (p. 227). Similar increases were found for the manager accountability DEM practices in small firms (7.18%) and large firms on (1.56%) for increasing accountability practices one standard deviation (p. …show more content…
The study concludes the that companies who want a competitive advantage should develop formal diversity programs to enhance the racial diversity in management to facilitate the competitive advantage. However, the data used to conduct the study was from 2002-2003 and were based on data obtained from US firms participating in Fortune magazine’s managing diversity questionnaire with a response rate of 14%. The determining factor for data selection was the fact that these firms went through an “extensive, rigorous evaluation process.” It was stated they were required to disclose their diversity practices at the headquarters level and approximately 40 percent of the firms used in the sample were listed in the Diversity Elite list (50 Best Companies for Minorities). Although the authors checked if response bias existed, 50 of the 137 firms were listed on a top 50 list for best companies for diversity. This would scream bias to an analyst reviewing the