Diversity Management: An Administrative Case Study in a Tax-Exempt Human Service Organization

Diversity management is a business strategy that is intended to create an organizational climate where people from diverse backgrounds can succeed based on their work performance and not their personal similarities or differences with the organization's leadership. Diversity management programs are intended to help business remove barriers resulting from discrimination. The present study investigated the need for a diversity management program in a tax-exempt human service organization. The perceptions and attitudes of organization employees, measured by survey instruments, in conjunction with an employee compensation study, provided the data for this investigation. The instrument designed for this study and the random sampling procedure were considered valid and reliable. The results of the present study could be generalized to the larger organization for use in the development of an effective diversity management program. Results indicated problems with the organization’s “Diversity Climate” and with “Employee Satisfaction”. Serious problems were indicated with the Hispanic employee population. Less serious yet potentially problematic were issues related to African-American employees. There were significant compensation differences between racial groups when controlling for job classification. Barriers to the promotion and advancement of minorities were identified. All groups surveyed called for changes in the way this organization managed diversity. Recommendations were offered based on the results of this study. This study called upon the diversity management field to produce outcome data and prove it’s utility as a management paradigm. Further recommendations were made for future research in the organization in the present study and the diversity management field. CHAPTER ONE: Introduction A. Problem Statement The present study investigated the need for a Diversity Management program in a taxexempt human service organization in the Midwest. The perceptions and attitudes of organization employees, measured by survey instruments, in conjunction with an employee compensation study, provided the data for this investigation. Diversity management is an emerging field designed to help business create an internal environment where employees of diverse backgrounds (race, gender, culture, sexual orientation, etc.) can work together to the best of their ability. The field focuses on the creation of a corporate culture that accepts individual differences while allowing for open participation in decision-making and advancement without barriers resulting from any form of discrimination. This is aimed at improving organizational performance regarding staff recruitment and retention, and towards organizational goal and objective achievement. The literature reported on diversity management programs in several for-profit corporations (Morrison, Ruderman & Hughes-James, 1993; Thomas, 1991; Fernandez, 1993). Authors suggested that effective diversity management improved business by: (1) attracting and retaining the best available human talent; (2) enhancing marketing efforts; (3) fostering higher creativity and innovation; (4) better problem-solving; and, (5) more organizational flexibility