Managing Change for Diversity & Inclusion, Alma Mater Studiorum UNIBO Presentation

ALMA MATER STUDIORUM UNIVERSITÀ DI BOLOGNA

Managing change for Diversity & Inclusion Claudia Manca Assistant Professor in HR & Organization @ Unibo Co-director of Studies, Master in HR & Organization @ BBS

Understanding Diversity

What is "diversity"? All of the seen and the unseen characteristics and experiences in which people are different. They also include the "Big Six" or "relevant markers of difference". Why are these variables so important (and the typical target of D&I initiatives)?

• + Gender
• Sexual orientation
• Ethnicity
• Religion
• Age
• Mixed abilities

The Big Six and Social Identity

What is "diversity"? The Big Six shape who we are as human beings and how we define ourselves based on the groups we belong to. They are especially important in determining our social identities.

• * + -> Gender
• Sexual orientation
• Ethnicity
• + Religion
• Age
• Mixed abilities

Social Identity Theory

Social Identity Theory (Tajfel & Turner, 1979) We all come to define who we are through the groups we belong to (e.g., I'm a woman, of a certain age, coming from a particular city, belonging to a certain profession, etc.). These groups define our social identities - i.e., who we are as members of social groups.

Gender Sexual orientation Ethnicity + Religion Age Mixed abilities

How to think of "diversity"? 7

Defining Inclusion

What is "inclusion"? Inclusion means creating an environment of respect, connection and community in which people feel valued, supported, and empowered to be their authentic selves.

This definition connects with the concept of psychological safety (cf. change slides). In an inclusive environment, people feel safe bringing their unique perspectives, ideas, and values to the table because they are not afraid of being degraded simply because they do not match those of the majority.

The Importance of D&I

Why do we (still) talk of D&I?

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Source pic: https://www.paroledimanagement.it/ce-ancora-un-futuro-per-la-dei-nellera-trump/ 9

The Business Case for D&I

The business case for D&I Companies in the top quartile for ethnic diversity are 36% more likely to financially outperform their peers

Difference in likelihood of outperformance of 1st and 4th quartile1 Ethnicity 35% 33% 36% 2014 2017 2019 McKinsey & Company

"Difference in likelihood of financial out performance vs the national industry median of five years average EBIT margin, using the full dataset of companies in each year. Source: https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters?cid=other-soc-twi-mip-mck-oth --- &sid=3434513061&linkId=91270445 10

Benefits of Diverse Ideas and Decision-Making

The business case for D&I The more diverse individuals, the more diverse ideas might emerge and prompt creativity

Difference in likelihood of outperformance of 1st and 4th quartile1 Ethnicity likely to financiallv D&I is essential to letting different voices being heard and improve decision-making World is changing fast! (increased buying power of an increasingly diverse and aware population, increased emphasis on purpose)

35% 33% 36% 2014 2017 2019

"Difference in likelihood of financial out performance vs the national industry median of five years average EBIT margin, using the ful dataset of companies in each year. 11

Challenges in Reaching Diversity Targets

The business case for D&I Companies in the top quartile for ethnic diversity are 36% more likely to financially

Difference in likelihood of outperformance of 1st and 4th quartile1 Ethnicity If there is a business case, why, many times, does it take company initiatives to reach diversity targets?

2014 2017 2019 McKinsey & Company

"Difference in likelihood of financial out performance vs the national industry median of five years average EBIT margin, using the ful dataset of companies in each year. 12

Forces Against D&I

The business case for D&I Companies in the top quartile for ethnic diversity are 36% more likely to financially

Difference in likelihood of outperformance of 1st and 4th quartile1 Ethnicity This question suggests that other forces may be at play, pushing against D&I.

2014 2017 2019 McKinsey & Company

"Difference in likelihood of financial out performance vs the national industry median of five years average EBIT margin, using the ful dataset of companies in each year. 13

Strategies for Organizational Diversity

How to bring diversity in your organization?

Positive Discrimination

How to bring diversity in your organization? Perspective #1. Positive discrimination. Considering the business case, increasing diversity is always good, even when diversity is forced within the organization by increasing the proportional representation of the minority.

Merit-Based Systems

How to bring diversity in your organization? Perspective #2. Merit-based systems. Favoring some individuals over others contradicts the core principles of merit-based organizations, where employees' performances are assessed fairly, independent of their differences ("the best" gets more opportunities).

Perspective #1. Positive discrimination. Considering the business case, increasing diversity is always good, even when diversity is forced within the organization by increasing the proportional representation of the minority.

Defining "The Best"

How do you define who's the best for something? Perspective #2. Merit-based systems. Favoring some individuals over others contradicts the core principles of merit-based organizations, where employees' performances are assessed fairly, independent of their differences ("the best" gets more opportunities).

Perspective #1. Positive discrimination. Considering the business case, increasing diversity is always good, even when diversity is forced within the organization by Increasing the proportional representation of the minority.

Social Identity and Competence Perception

How do you define who's the best for something? Social identity theory suggests we tend to associate with and trust those we perceive as similar to us (in-group favoritism) ... 0000

How do you define who's the best for something? Social identity theory suggests we tend to associate with and trust those we perceive as similar to us (in-group favoritism) ... 000 ... also, how we perceive competence is often shaped by unconscious or implicit bias

Implicit Bias

Implicit bias A father and his son are involved in a horrific car crash and the man died at the scene.

But when the child arrived at the hospital and was rushed into the operating theatre, the surgeon pulled away and said: "I can't operate on this boy, he's my son".

How can this be? 20

Implicit bias A father and his son are involved in a horrific car crash and the man died at the scene.

But when the child arrived at the hospital and was rushed into the operating theatre, the surgeon pulled away and said: "I can't operate on this boy, he's my son".

How can this be? 21

Cultural Stereotypes and Competence

Implicit bias The way we perceive competence can be biased by unconscious associations between social identities that we view as mutually exclusive or mutually complementary.

These automatic associations have nothing to do with proven competence; rather, they stem from cultural stereotypes (e.g., the idea that surgeons are stereotypically men). 22

Implicit Bias and AI

Implicit bias and Al B B C Sign in Home News Sport Reel Worklife Travel NEWS Home | War in Ukraine Coronavirus Climate | Video | World | UK | Business Tech Science Tech Amazon scrapped 'sexist AI' tool @ 10 October 2018 GETTY IMAGES The algorithm repeated bias towards men, reflected in the technology industry An algorithm that was being tested as a recruitment tool by online giant Amazon was sexist and had to be scrapped, according to a Reuters report. The artificial intelligence system was trained on data submitted by applicants over a 10-year period, much of which came from men, it claimed.

Doutore sine told har mambare oft! working it that the custom In 2018, Amazon launched its Al-based recruiting platform for selecting the best candidates around the globe. The algorithm searched for those candidates whose CV characteristics correspond to the ones of the best performers in the company. A few months later, Amazon dropped its AI system. What do you think happened?

Implicit Bias and Remote Work

Implicit bias and remote work Hypothesized Model for the Relationship between Flexible Work Practice Use and Career Successa Attribution theory Productivity FWP Attributions Employee FWP Use Perceived Employee Commitment Employee Career Success Signaling theory Personal Life FWP Attributions Self-Reported Employee Commitment Employee Job Performance a Dashed borders indicate control variables.

Source: Leslie, L. M., Manchester, C. F., Park, T. Y., & Mehng, S. A. (2012). Flexible work practices: a source of career premiums or penalties ?. Academy of Management Journal, 55(6), 1407-1428.

D&I and Power Dynamics

D&I and power Critical diversity studies advocate for the concept of positive discrimination, suggesting that we should prioritize disadvantaged individuals over others.

Exclusion is historical and systemic, having deeply embedded itself in the system. It requires a critical mass to overcome these entrenched effects (i.e., a number of people belonging to traditionally underrepresented groups in positions of power).

Source: Mahadevan, J. (2017). Workplace diversity, Muslim minorities and reflexive HRM: Concepts, challenges and power implications in context. In Muslim minorities, workplace diversity and reflexive HRM (pp. 1-12). Routledge.

Majority Backlash

D&I and power Yet, increasing numbers and expecting the change to happen are not enough. Indeed, it can also trigger a backlash.

The majority backlash is a form of resistance enacted by the majority to defend its dominant position, exhibiting more discriminatory behaviors that ultimately reduce the power of minorities.

Source: Mahadevan, J. (2017). Workplace diversity, Muslim minenties and reflexive HRM: Concepts, challenges and power implications in context. In Muslim minorities, workplace diversity and reflexive HRM (pp. 1-12). Routledge.

Altering Power Relationships

D&I and power Therefore, if we want to see a significant change, we need to work on altering the power relationships within organizations, specifically between dominant and subdominant groups, between majorities and minorities.

Also, instead of asking ourselves whether D&I brings value to the organization, we need to shift the question by asking ourselves what conditions should be in place to unleash the value of diversity - this links to the concept of diversity perspectives.

Source: Mahadevan, J. (2017). Workplace diversity, Muslim minorities and reflexive HRM: Concepts, challenges and power implications in context. In Muslim minorities, workplace diversity and reflexive HRM (pp. 1-12). Routledge.