15.660 Strategic Human Resource Management MIT Sloan School of ManagementGender Differences The EvidencePERCENT FEMALE IN OCCUPATIONS Marketing Financial Managers Lawyers Engineers Nurses Elementary Teachers 1970s 7% 19 5 1 97 83 1990s 37% 50 26 8 93 84PERCENTAGE WOMEN (500 TOP FIRMS BY SALES) ? CORPORATE OFFICERS = 12% ? CORPORATE OFFICERS WITH LINE RESPONSIBILITY = 7% • HR 15% • FINANCE/ACCOUNTING 2% • LEGAL/REGULATORY 11% • SALES 2% • MARKETING 7% SOURCE: BETRAND AND HALLACK, ILRR, 10/01HOURS OF WORK MEN WOMEN <35 10.5% 28.9% >40 40.4% 19.3%PAY, TOP FIVE OFFICERS (S & P 500, MIDCAP 400, SMALLCAP 600) ? MEN $1,333,000 ? WOMEN $894,000 (ALL SOURCES) SIZE OF FIRM = 33% OF GAP SIZE + PERSON’S AGE = 53% OF GAP SOURCE: BETRAND AND HALLOCK, ILRR, 10/01THE PRICE TO BE PAID AMONG CORPORATE OFFICERS, 1986 MEN WOMEN AGE 51 44 EVER MARRIED 99% 80% DIVORCED 4% 20% HAVE KIDS 95% 50% SOURCE: FUCHSTwo Paths ? Legal ? OrganizationalTitle VII of the Civil Rights Act of 1964 ? Unlawful to discriminate on the basis of race, sex, religion, or national origin. ? Applies to all firms and organizations with at least 15 workers who have been employed for a period of 20 weeks in a calendar year. ? Administered and enforced by the Equal Employment Opportunity Commission (EEOC).Discrimination Disparate Treatment Disparate Impact Reasonable AccommodationFrom Affirmative Action to Affirming Diversity AA/EEO Diversity • Special Program • Cultural Shift • Benefits Disadvantaged • Benefits the Organization • Focus on Hiring, Retention, • Focus on Performance Promotion • Legally Mandated • Strategically ImportantDiversity Paradigms David A. Thomas and Robin J. Ely “Making Differences Matter: A New Paradigm for Managing Diversity.” Harvard Business Review, September-October 1996, Pages 79-90.Examples ? The legal profession ? Boston Symphony Orchestra ? Deloitte & Touche ? MITPART TIME LAWYERS Women are 28% of lawyers at 100 largest firms in Massachusetts, but 40% of lawyers who leave annually are women 90% of firms offer part-time work Part-time women leave firms at a rate 70% higher than full-time men Boston Globe, 12/4/2000THERE ARE MORE SUBTLE PROBLEMS “Once a women decides to work less than 60 hours a week she gets fewer challenging cases…people will see you in the elevator and say ‘Oh, you’ve been with the kids,’ but in fact you’ve been in court.” Boston Globe, 12/4/2000Blind Auditions at the Boston Symphony Orchestra ? BEFORE: 10% of new hires were women ? AFTER: 35% of new hires were women NO LEAVE OF ABSENCE or TURNOVER DIFFERENCE BETWEEN MEN AND WOMEN SOURCE: GOLDIN AND ROUSE, AER, 9/2000Deloitte & Touche 1991 ? 5% of partners are women ? Female turnover much higher than male turnover. ? 4/50 Partner candidates were women 2000 ? 14% of partners are women ? Female and male turnover are equivalent. ? Overall turnover falls from 25% to 18% saving $250,000,000 in hiring and training costs SOURCE: HBS Case and HBR articleDeloitte & Touche Process COMMIT INVESTIGATE & ? DEFINE THE EDUCATE PROBLEM ? TASK FORCE ? ESTABLISH TASK GATHERED DATA ON FORCE TURNOVER, PROMOTION RATES, ? PERSONALLY CHECK QUALITY OF ATTENDANCE ASSIGNMENTS ? PERSONALLY CALL ? WORKSHOPS OFFICES FOR DATA 100% ATTENDANCE OF 5000 PROFESSIONALS TEACH CULTURE CHALLENGE ASSUMPTIONS SURFACE PRACTICES CHANGE POLICIES ? “FLEXIBLE ACCOUNTABILITY” MANAGERS HELD RESPONSIBLE FOR PROGRESS (DIFFERENT THAN AFFIRMATIVE ACTION?) ? FORMAL CAREER PLANNING PROCESS ? NETWORKING EVENTS ? WORK/FAMILY POLICIES AND CULTUREDoes MIT Discriminate? ? Women in Science ? Gender issues in the entire university MIT’S STAGES HUH? INDIVIDUAL FIXES SYSTEMIC FIXESMIT PROCESS ? SENIOR LEADERSHIP ? REPORT/PUBLICITY ? HIRING PRACTICES MONITORED ? FINANCIAL HIRING INCENTIVES ? WORK FAMILY POLICIES AND CLOCK STOPPINGDIVERSITY STRATEGIES ? STAFFING recruitment goals and timetables succession planning ? TRAINING/CULTURAL CHANGE, SENIOR LEADERSHIP ? COMPLAINT MECHANISMS, EEO STAFF ? POLICIES, E.G. FLEX TIME, WORK/FAMILY ? AFFINITY GROUPSORGANIZATIONAL CHANGE ? SENIOR LEADERSHIP ? MEASURE AND REWARD MANAGERS ? STAFFING PROCEDURES RECRUITMENT/GOALS POSTING, BIDDING MENTORING ? WORK-FAMILYDOES A FIRM HAVE ANY RESPONSIBILTY FOR WORK-FAMILY ISSUES OR AN EMPLOYEES PERSONAL LIFE?MOVTIVATION FOR WORK-FAMILY ? IT’S THE RIGHT THING TO DO ? SOLVE ISSUES SUCH AS ABSENTEEISM ? BUILD LOYALITY AND COMMITMENT ? ATTRACT A PARTICULAR WORKFORCE PROFILE ? GARNER GOOD PUBLICITYMOTIVATION FOR WORK-FAMILY PROGRAMS SOLVE ABSENTEEISM ETC. 41% HELP RECRUIT KEY EMPLOYEES 41% CHEAPER THAN WAGE INCREASE 19% DEMONSTRATE THAN WE CARE 73% Source: Osterman 1992WORK-FAMILY PROGRAMS ? DAY CARE ON SITE ? DAY CARE SUBSIDIES ? PAID PARENTAL LEAVE ? FLEXIBLE HOURS ? UNPAID PARENTAL LEAVE ? REFERRAL SERVICES ? SEMINARSSOME WORK-FAMILY COMPLICATIONS ? BACKLASH: WHAT TO DO FOR EMPLOYEES WITH NO WORK-FAMILY ISSUES (I WANT TWO WEEKS OFF TO GO MOUNTAIN CLIMBING) ? WHETHER WORKERS FEEL COMFORTABLE UTILIZING THE BENEFITS (ORGANIZATIONAL CULTURE)IS IT FAIR? ? IS IT WIN/WIN OR ARE THERE LOSERS? ? SHOULD POLICIES BE SHAPED TO INDIVIDUAL CIRCUMSTANCE OR SHOULD THE SAME RULES APPLY TO EVERYONE?MEANING OF MERIT ? SAME SKILLS, BACKGROUND, EXPERIENCE =SAME OUTCOME? ? WHAT COUNTS AND WHAT WEIGHTS ARE PLACED ON DIFFERENT ATTRIBUTES? ? WHERE DO SKILL, BACKGROUND, AND EXPERIENCE DIFFERENCES COME FROM? ? PROCESSES INTERNAL TO FIRM? ? “PRE-EMPLOYMENT” ? FAMILY CIRCUMSTANCES? ? DOES THE FIRM HAVE ANY