Diversity management: A necessary prerequisite for organizational innovations?

1. Diversity management: A necessary prerequisite for organizational innovations? Ludvík Eger, Dana Egerová, Zuzana Krištofová

2. Diversity management • THE STARTING POINTS • Diversity is here to stay • The impact of diversity is growing • substantially • Diversity will increase in the next years • Organizations have to adapt to this reality • Diversity management should be considered as a necessity for • companies • „The crisis made our diversity efforts more intense. We are a survivor because of our relative diversity“ (E.Taylor, Deutsche Bank)

3. Diversity management • THE DEVELOPMENT OF THE CONCEPT OF DIVERSITY MANAGEMENT • From the affirmative actions to broad use of diversity management in organizations (after the year 2000) • CURRENT FOCUS ON DIVERSITY • An issue of personal management - as the sub-discipline within the Human Resource Management. • A complexissue - diversity as a matter concerning all the organization. • + more focus on customizing diversity.

4. Research study • THE PURPOSE OF THE RESEARCH STUDY • To explore diversity management practices in organisations. • To provide examples of successful diversity management implementations. • To describe these examples as case studies “best practices”. • To give a better understanding of application of diversity management in organizations. • RESEARCH QUESTION • What is the existing state of the implementation of diversity management in large organizations with foreign participation in the Czech Republic? • .

5. Research study • The method of case study was selected for the description and for more in-depth understanding of diversity management implementation in the selected organisations. • The case studies were carried out through: • structured interviews with the HR managers, • documentary analysis, • web pages analysis. • The study includes best-practice case studies from six organizations: • one company from the field of telecommunication services, • two companies from the field of food manufacture, • one from the field of IT services and • two companies from the field of banking.

6. „Bestpractices“ - Awards related to CSR and diversity T- Mobile , e.g. 2010 and 2012 - 2nd place in Company of the year - equal opportunities, 2011 - Top responsible company award Kraft Foods,e.g. 2009 - Best Social Responsibility Practice award, Woman Engineer Magazine award for proactive approach to employed women Nestle Česko, e.g. 2012 - competition Top responsible company – 2nd place – Workplace of the future Komerčníbanka, 2008 - 3rd place in the competition Company of the year: Equal opportunities, 2012 - title The most desirable employer of the decade IBM ID Centre Brno, 2008, 2009 a 2010 - 1st, 2nd and 3rd places in the competition Company of the year: Equal opportunities Českáspořitelna, e.g. 2011 – 1st place in the competition Company of the year: Equal opportunities, 2011 – title Workplace of the future in the competition Top responsible company

7. Summary of main findings from the case studies equal opportunities respect to individuality as values of org. culture shared values principle respect and openness as org. culture values open diversity culture educational programs, gender issues, company volunteering shared values principle civic society development charity, volunteering, equal opportunities Diversitystrategy – YES – allcompanies CSR CULTURE CULTURE

8. Summaryofmainfindingsfromthe case studies Diversity aspects and their integration full Integration full Integration full Integration full Integration full Integration Business Diversity full Integration full Integration full Integration full Integration full Integration full Integration full Integration Workforce Diversity full Integration partial integration full Integration full Integration partial integration partial integration Behavioural Diversity full Integration full Integration partial integration full Integration full Integration full Integration Structural Diversity

9. Summary of main findings from the case studies talent diversity, support of parents equal opportunities for specific groups gender diversity, people with disabilitiess work-life balance work-life balance cultural adaptability Fields od diversity

10. T-Mobile Czech Republic, a.s. • The company employs almost 3000 employees in the Czech Republic. The company entered the concept of social responsibility in the year 2005. • Examples of activities: • Within the strategy of diversity management the company focuses on two basic fields of diversity. • support of equal opportunities, the so called “Fair Share”. The company implements programmes to support career growth for women, a well balanced age structure of teams and the involvement of handicapped persons in work. • The work-life balance. • The company also initiates programmes for parents on maternity/parental leave, and assists them when they return after the maternity/parental leave. Last but not least, the company also supports the ethnical diversity of teams. • + Specific attention is paid to new employees and their coaching.

11. Kraft Foods CR Ltd. Company - Mondelēz International • In overall 5 factories in the CR and the SR, the company employs over 3,000 people. • Since April 2013 the official name of the company in the CR is Mondelez Czech Republic. • Examples of activities • The company supports diversity on the workplace by offering flexible working hours, the possibility of working from home, reduced and part time workloads. • The company also supports internal mobility at the local level and highlights the support of talents within Kraft Foods and uses the talent management at the international level. • Equal treatment in the company is supported by means of personnel processes, such as recruitment and selection of employees. • Kraft Foods also monitors women representation in the management. • Education and harmonizing work and private life is also part of the diversity attitude.

12. Nestlé Česko Ltd. Company • The company is part of the international food group Nestlé. • Social responsibility is applied in the range from ethical standards up to responsible behaviour in the field of the environment and active support of the non-profit sector. • Examples of activities • Two priorities of diversity management were set in the company. • The first one is the talent management and its link to diversity management. • The second is the cooperation with parents on maternity leave and the system by which they return to work. • Attention is also paid to the field aimed at harmonizing personal and professional life, alternative work modes…

13. Komerčníbanka, a.s. • Komerční banka, a.s. (KB) belongs to the three largest banks in the Czech Republic. • KB is part of the international group Société Générale. Currently it employs almost 8,000 employees, out of whom more than 70% are women. Social responsibility is integral part of the KB strategy and is understood as one of the key fields of the long-term success. • Examples of activities • Within the support of equal opportunities the company implements programmes aimed at specific groups of employees. • the program for career guidance called Carmen, • employees 50+, the handicapped employees, graduates and students. • Mentoring, in KB it is included in the programme called Talent management, is also applied in the field of gender diversity and within the support of women to help them develop their careers. • + supportig work-life balance.

14. Summaryoffindings • Diversity strategy is developed in all organizations • Diversity strategy is aligned to the business strategy • Diversity is considered to be CSR issue • Diversity is considered as one of the key elements of CSR • Diversity is a part of organization culture • Diversity is considered as one of the important company value • Diversity programs and policies reflect specific purposes and organization conditions

15. Conclusion • Economic, social and cultural changes in the Czech Republic make diversity management necessity for companies that want to thrive in the current highly competitive and uncertain business environment. • Managing diversity well provides some potential benefits to organisation: • improved quality and effectiveness of the workforce • Increased creativity and innovation • broader service to customer • improved decision-making and problem-solving • Increased loyalty (from staff, customers) • Improved retention/ recruitment • lowered staff turnover

16. Conclusion • „Innovation provides the seeds for economic growth, and for that • innovation to happen depends as much on collective difference as • on aggregate ability….“ • „Finding new and better solutions, innovating, requiresthinking • differently. That’swhy diversity powers innovation.“ (Page, 2007)

17. Conclusion • Thank you for your attention ! • leger@kmo.zcu.cz • egerova@kpm.zcu.cz