10/18/2010

IBM

WORKFORCE DIVERSITY OF IBM

Name :Rashidul Islam ID:09-13259-1 Section: A Submitted To NIshat Moumita Lecturer Of Human resource Management

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Workforce Diversity

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IBM (International Business Machines)

Diversity in the workforce of IBM Benefits of IBMs Workforce Diversity

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Things that IBM can improve to Their Workforce Diversity

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Workforce Diversity
Diversity in the context of the Department primarily refers to the Equal Employment Opportunity (EEO) groups who are underrepresented in our workforce. These groups include: women in senior leadership roles; Aboriginal and/or Torres Strait Islander people; people whose first language was not English and members of racial, ethnic and ethno-religious minority groups; and people with a disability. Other dimensions of diversity include age diversity, family responsibilities, marital status, sexual orientation, educational level, life experience and socio-economic background. The Department embraces workforce diversity as a source of strength. This is not only about increasing visible differences in the workforce, but more importantly it is about the strategic advantage that comes from incorporating a wide variety of capabilities, ideas and insights in the decision making, problem solving and policy development.

Workforce Diversity is one of the essential parts for the organization. To reach the pick of success every organization need to have diversification in workforce. Businesses today have to be at the forefront in ensuring that their organizations are multi-culturally diverse because diversity is not only morally correct behavior, it also makes good business sense. Workforce diversity is a critical necessity, especially in todays knowledge economy. It is extremely important for firms to understand that workforce diversity works. It helps create a work environment in which female and minority employees and customers feel welcome. The demographics of the world are rapidly changing, and workforce diversity is vital for firms that desire to thrive in the future. Discrimination is costly not only on the individual level, but also on the corporate level and even on a national level. The key to managing a diverse workforce is increasing individual awareness of and sensitivity to differences of race, gender, social class, sexual orientation, physical ability, and age. There are several ways to go about creating the multicultural organization that performs extremely well. There are four key categories of a firm where workforce diversity is mostly needed. These are:

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Diversification is these categories help to develop effective communication in diverse organizational environments. These categories also include self-monitoring, empathy, and strategic decision-making. Self-monitoring refers to a communicator's awareness of how his or her behavior affects another person, and his or her willingness to modify this behavior

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based on knowledge of its impact. Empathy enables the receiver to go beyond the literal meaning of a message and consider the communicator's feelings, values, assumptions, and needs. Strategic decision-making implies that the communication sources and channels used to reach organization members, as well as the substance of the messages conveyed, are mindfully selected. Managing diversity goes far beyond the limits of equal employment opportunity and affirmative action. High performing diversity managers recognize that specialized skills are necessary for creating a productive, diverse workforce. They seek out continuous learning opportunities and some go as far as acquiring certification. Managers must be willing to work towards changing the organization in order to create a culture of diversity and inclusion. Assessment skills and diversity education are key elements of culture change. However, the leaderships support of the change cannot be understated.

IBM (International Business Machines)

IBM is considered as one of the best companies for diversity. In 2006 they were awarded as the best senior management diversity in the world. A brief Introduction of IBM is given below:

IBM CORP. Location: Armonk, NY Type of Business: Information Technology Diversity Contact: Ted Childs, VP, Global Workforce Diversity BIG BLUE IS AT THE FOREFRONT OF THE DIVERSITY EFFORT . THE $1 BILLION IT SPENT WITH MINORITY SUPPLIERS IN 2005 IS A TESTAMENT TO ITS COMMITMENT . TEMPORARY EMPLOYMENT SERVICES FIRM ACT-1 GROUP (N O. 4 ON THE BE INDUSTRIAL/SERVICE 100 LIST WITH $718 MILLION IN SALES ) IS ONE OF THE BLACKOWNED
ENTERPRISES THAT CONTINUE TO GAIN SUBSTANTIAL CONTRACTS WITH IBM. THE COMPANY ALSO FOCUSES ON DIVERSITY IN THE MARKETPLACE THROUGH ITS MARKET DEVELOPMENT TEAM; IN THE WORKFORCE , THROUGH PROJECT VIEW, A PROGRAM THAT RECRUITS MINORITY GRADUATES ; AND IN CORPORATE GOVERNANCE , WITH TWO AFRICAN A MERICAN DIRECTORS ON ITS 13-MEMBER BOARD .

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Diversity in the Workforce of IBM

IBM's efforts to promote workforce diversity and equal opportunity date back to 1899, when The Computing Scale Company, one of the three companies to later form what became IBM, hired Richard MacGregor, a black employee, as well as three women: Lilly J. Philp, Nettie A. Moore and Emma K. Manske. The company's first employee with a disability was hired in 1914. IBM was the only technology company ranked in Working Mother magazine's Top 10 for 2004, and one of two technology companies in 2005 (the other company being HewlettPackard). On September 21, 1953, Thomas Watson, Jr., the company's president at the time, sent out a controversial letter to all IBM employees stating that IBM needed to hire the best people, regardless of their race, ethnic origin, or gender. He also publicized the policy so that in his negotiations to build new manufacturing plants with the governors of two states in the U.S. South, he could be clear that IBM would not build "separate-but-equal" workplaces. In 1984, IBM added sexual orientation to its nondiscrimination policy. The company stated that this would give IBM a competitive advantage because IBM would then be able to hire talented people its competitors would turn down. On October 10, 2005, IBM became the first major company in the world to commit formally to not using genetic information in employment decisions. The announcement was made shortly after IBM began working with the National Geographic Society on its Genographic Project. The company has traditionally resisted labor union organizing, although unions represent some IBM workers outside the United States. In 2009 following the announcement in the UK of pension cuts that left many employees facing a shortfall in projected pensions, several hundred employees joined the Unite union. In the 1990s, two major pension program changes, including a conversion to a cash balance plan, resulted in an employee class action lawsuit alleging age discrimination. IBM employees won the lawsuit and arrived at a partial settlement, although appeals are still underway. IBM also settled a major overtime class-action lawsuit in 2006. Historically, IBM has had a good reputation of long-term staff retention with few large scale layoffs. Recently, there have been cuts to the workforce in less profitable markets as IBM attempts to adapt to changing global market conditions. After posting weaker than expected revenues in the first quarter of 2005, IBM eliminated 14,500 positions, predominantly in Europe. In May 2005, IBM Ireland announced that the MD (Micro-electronics Division) facility was closing down by the end of the year and offered a settlement to staff. However, all staff that wished to stay with the Company were redeployed within IBM Ireland. The production moved to a company called Amkor in Singapore who purchased IBM's Microelectronics business in Singapore and is widely agreed that IBM promised this Company a full load capacity in return for the purchase of the facility. On June 8, 2005, IBM Canada Ltd. eliminated approximately 700 positions. IBM projects the moves as part of a

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strategy to "rebalance" its portfolio of professional skills and businesses. IBM India and other IBM offices in China, the Philippines and Costa Rica have been witnessing a recruitment boom and steady growth in the number of IBM employees due to lower wages, local revenue growth and increasing percentages of educated and skilled technical and business workers in other countries.

Benefits of IBMs Workforce diversity

As the world enters to the 21st century, workforce diversity has become an essential business concern for IBM. In the so-called information age, the greatest assets of IBM are now on two feet (or a set of wheels). Undeniably, there is a talent war raging. IBM can afford to unnecessarily restrict its ability to attract and retain the very best employees available. As a Social Responsibility Because many of the beneficiaries of good diversity practices are from groups of people that are disadvantaged in our communities, there is certainly good reason to consider workforce diversity as an exercise in good corporate responsibility. By diversifying our workforces, IBM gives individuals the break they need to earn a living and achieve their dreams. As an Economic Payback Many groups of people who have been excluded from workplaces are consequently reliant on tax-supported social service programs. Diversifying the workforce, particularly through initiatives like welfare-to-work, can effectively turn tax users into tax payers. As a Resource Imperative The changing demographics in the workforce, that were heralded a decade ago, are now upon IBM. Todays labor pool is dramatically different than in the past. No longer dominated by a homogenous group of white males, available talent is now overwhelmingly represented by people from a vast array of backgrounds and life experiences. Competitive companies cannot allow discriminatory preferences and practices to impede them from attracting the best available talent within that pool. As a Marketing Strategy Buying power, particularly in todays global economy, is represented by people from all walks of life (ethnicities, races, ages, abilities, genders, sexual orientations, etc.) To ensure that IBM make their products and services which are designed to appeal to this diverse customer. Similarly, IBM interact directly with the public are finding increasingly important to have the makeup of their workforces reflect the makeup of their customer base. As a Business Communications Strategy
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IBM is seeing a growing diversity in the workforces around them - their vendors, partners and customers. For this reason their workforce diversity plays a vital role in their business communications strategy. As a Capacity-building Strategy Tumultuous change is the norm in the business climate of the 21st century. But IBM has the capacity to effectively solve problems, rapidly adapt to new situations, readily identify new opportunities and quickly capitalize on them. This capacity can be measured by the range of talent, experience, knowledge, insight, and imagination available in their workforces. In recruiting employees, IBM recognizes conformity to the status quo as a distinct disadvantage. In addition to their job-specific abilities, employees are increasingly valued for the unique qualities and perspectives that they can also bring to the table.

Things that IBM can improve to their Workforce Diversity

Though IBM takes many active steps in their workforce diversity, but there are six steps which they can take to improve the diversity of their work. First, increase executive management's awareness of, and involvement in, work force diversity issues. Require regular reporting to the highest level of management on work force data and trends. Demand that senior management develop an increased awareness and knowledge of workplace and diversity issues, and that they recognize the corresponding legal and business risks of failing to do so. Second, monitor and act on work force data. Create and maintain a validated employment database and analyze trends and issues concerning hirings, promotions and pay equity for all employees, especially women and minorities. Third, set aggressive but achievable annual targets for diversity hiring and promotions by managers. Consult benchmarking standards such as Fortune magazine's "50 Best Companies for Minorities." Consider the use of "diversity scorecards" to track progress, and demonstrate opportunities and placements not only to their customers, but also to their own work force. Incorporate diversity targets into performance objectives for department heads, hiring managers and other key employees. Fourth, eliminate miscommunication and ensure close coordination among recruiters, hiring managers and human resources personnel. They have to make sure their hiring managers know their business objectives, and set realistic expectations for all concerned. Most importantly, identify and implement lessons learned from each hire - what worked and what didn't. Fifth, develop a fair and effective employee complaint resolution process. Review their complaint process to ensure thorough and comprehensive complaint investigation. Assign a trained professional to respond to complaints and require prompt and thorough investigation. Determine supervisory and employee training

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needs. Consider alternative dispute resolution mechanisms such as mediation, arbitration or peer review. Last, ensure equitable hiring, compensation, discipline and promotion practices. Require annual review of applicable policies and procedures by their legal department or outside experts. Demand consistent application and enforcement of all policies. Discipline supervisors and managers who fail to consistently enforce your policies.

Diversity brings substantial potential benefits such as better decision making and improved problem solving, greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers. Simply recognizing diversity in a corporation helps link the variety of talents within the organization. Diversity also provides organizations with the ability to compete in global markets. Diversity is not only about preventing unfair discrimination and improving equality but also valuing differences and inclusion, spanning such areas as ethnicity, age, race, culture, sexual orientation, physical disability and religious belief.

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