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8 CASE Managing Diversity: Johnson Chemical International Jeff Rice, vice president of corporate human resources at Johnson Chemical International, was very anxious about the meeting he was about to have with John Henderson (CEO), Gary Polaski (secretary and general counsel), Steven Hong (vice president of operations, Haverford plant), and Matt Beale (vice president of public affairs and communications). The last two days had been quite tense in the company ever since an e-mail (see Exhibit 1.9) was sent throughout the company's Haverford plant. Johnson Chemical International is one of the world's leading manufacturers of specialty chemical products. The company was founded in 1902 by Herman Johnson, who was an MIT- trained chemist. Over the years, Johnson Chemical has built a reputation for producing high- quality products developed through cutting-edge technology and research. As a privately held corporation, Johnson Chemical does not report sales or earning figures. It has plants and operations in 30 countries and manufacturing facilities in 10 countries (Argentina, Canada, Kenya, Indonesia, Greece, United Kingdom, Japan, Taiwan, Malaysia, and Brazil). Johnson Chemical employs more than 14,500 people worldwide with its headquarters located in Chicago. Employment in the United States is about one-half of its total workforce worldwide, with a majority of those employees in the Chicago area. Because of its need for highly trained scientists and technicians, the company recruits a substantial number of employees with training in the science and engineering fields. The U.S. manufacturing operations are conducted at the Haverford plant, about 15 miles outside of Chicago. The state-of-the-art plant is about three million square feet and is one of the most modern chemical manufacturing facilities in the world. The facility also has state-of- the-art laboratories and houses the company's research division. In addition to its hourly employees, the company employs a large number of R&D employees consisting of scientists, technicians, and engineers. Because of its need for highly trained technical employees, the company conducts extensive recruiting at the major colleges and universities with outstanding science and engineering programs. A majority of Johnson Chemical's top management has come from the technical ranks of the company. Its current CEO, John Henderson, is a chemical engineer and the former president of international operations. THE MEETING John Henderson: Come on in, Jeff. Good morning, folks. I want to thank you for meeting with me this morning. We have a major problem on our hands. A crude e-mail has sent a tidal wave through the company. It's already hit the press. We've had several calls from the media asking for us to comment on what has happened. Matt, how are we handling the calls? Matt Beale: John, I have issued a press release that basically states that Johnson Chemical does not tolerate any form of racist or sexist jokes and the individual responsible will be dealt EXHIBIT 1.9 TV TV3 The e-mail message Morning Puzzle: Do you recognize these acronyms? UFO IBB NAACP Answer: UFO = Ugly ------- Orientals; IBB = Itty bitty breasts; and NAACP = -----, apes, alligators, coons and possums with appropriately. Our information systems folks are trying to determine the origins of the e-mail. Gary Polaski: John, don't worry. We are on firm legal grounds if we fire the individual or individuals responsible for using the company e-mail to send racist and sexist jokes. I think we should take very strong action when we find out who is responsible. Steven Hong: Well, we better do something fast because it is certainly affecting plant operations. People aren't working but are busy talking about the e-mail. I'm afraid that it really has taken people off track for the time. It also seems to be unleashing some grievances that our women and minority employees have about their treatment in the company. The men and white employees seem to be worried that they're going to all be blamed for the e-mail or, even worse, that they agree with the sentiments in that e-mail. John, I'm worried about the impact of this on employee morale. Jeff Rice: John, since the e-mail I have had several women and minority employees, especially the African-American employees, come to my office to talk about problems and other incidents in the company. To be honest, it has caught me off guard. We have an excellent equal opportunity/affirmative action program in place and have made some strides in hiring women and minorities in the last five years (see Exhibit 1.10). I am wondering if we've really done enough. John Henderson: I'm not sure what you mean, Jeff. Our company has enjoyed a good reputation as a leader in the industry when it comes to equal employment opportunity. How could this happen? Jeff Rice: Well, I was thinking about this last night. You know, John, in the last few years we have begun to have a more diverse group of employees after years of being a company with 28 Perti. Human Resource Management in Perspective EXHIBIT 1.10 Employment Trends There has been a 10 percent increase in employee growth at the Haverford Plant. The percent of women employees has increased from 10 to 15 percent. The percent of African-American employees has remained at 6 percent The percent of Asian employees has increased from 5 to 10 percent. Plant turnover averages 2 percent, but is ten times higher for women and African Americans. The percent of women in management/supervisory positions increased from 2 to 2.7 percent. The percent of African Americans in management/supervisory positions increased from 1.5 to 2.0 percent The percent of Asians in management/supervisory positions increased from 2 to 3.5 percent. There has been an 8 percent increase in minority scientists (most of that represents Asians). The percentage of women scientists has grown by 2 percent. The highest ranking woman in the company is Meredith Jensen, vice president and deputy counsel. The highest ranking African-American manager is vice president for equal opportunity and employee relations The highest ranking Asian manager is vice president, plant operations. primarily white male employees. Perhaps, it was only a matter of time before these tensions emerged. John Henderson: Well, we're going to have to get a handle on the issues. Jeff, I want you and your staff to find out what the issues are and give me a report on your findings in 60 days. After we review your report, we'll have to determine what we need to do. Get whatever help you need from consultants. I expect a negative media backlash on this thing, and we're going to have to show that we are a company prepared to deal with tough issues. I have prepared a companywide message that will be sent to all employees this afternoon (see Exhibit 1.11). RICE'S REPORT Two months after the meeting, Jeffrey Rice sent John Henderson and the rest of the executive staff a 20-page confidential report of his findings. Excerpts from his report are contained in Exhibits 1.121.18. With the assistance of a consulting firm, Rice organized focus groups with African-American employees, women employees, Asian employees, and white male EXHIBIT 1.11 Letter to Employees from John Henderson, CEO Dear Johnson Employees: By now, you have heard about the e-mail that was sent through the company's computer system that contained offensive comments. I want to be very clear: We will not tolerate behavior that makes our work environment uncomfortable and hostile for others. The telling of racist, sexist, or offensive comments is not appropriate behavior at Johnson Chemical. It is disrespectful of fellow employees. Using company e-mail to perpetuate offensive views of others violates company policy. Rest assured that we will see that those responsible for sending the e-mail are duly disciplined. I am counting on you to respect your fellow employees and to commit to ensuring a working climate that is tolerant of our diversity. Johan Hendern John Henderson employees. Focus groups were recruited on a volunteer basis and were facilitated by the consultants to assure confidentiality and candidness (see Exhibit 1.12). The topics covered in the focus groups are shown in Exhibit 1.13. The views expressed by each group are summarized in Exhibits 1.141.17. In addition to the focus groups, an employee attitude survey was also administered to all plant employees. The results of the survey are shown in Exhibit 1.18. QUESTIONS 1. Evaluate Johnson Chemical's actions in dealing with the e-mail. 2. Examine the data contained in Exhibits 1.10 and 1.121.17. What seem to be the mos: significant diversity issues at Johnson Chemical? 3. What is the cost of these problems to the organization? What will happen if they are no: addressed? 4. Where and how do these issues need to be dealt with? 5. What support, skills, and training do managers need to deal with these issues? 6. What human resource management systems or policies need to be examined and possibl: modified? EXHIBIT 1.12 Letter of Invitation to Participate in Focus Group Discussions As you know, we continue to be committed to having an equal opportunity work climate at Johnson Chemical. In an effort to achieve this goal, we invite you to participate in a focus group to help us collect data around issues of diversity. The focus groups will be organized so that we bring together different categories of employee groups over the next two months. To assure confidentiality and anonymity, the actual discussion sessions will be facilitated by an outside consultant group we have contracted to assist us in our efforts. Discussion will focus on your experiences and thoughts on topics related to our human resource policies and systems, and equal opportunity work climate I hope you will be willing to participate in one of the focus groups. Thank you in advance for your help. If you have any questions, please call my office. I'll be happy to provide additional information. Sincerely, Jeffrey Rice Jeffrey Rice, Vice President Corporate Human Resources EXHIBIT 1.13 Focus Group Discussion Areas 1. Comment on your experience and view of the following areas of the company: A. Recruitment and hiring: sources of recruits; selection criteria; orientation of new employees B. Promotion: fairness of rating system; adequacy of opportunity C. Training and career development access to training; selection of trainees; adequacy of and availability of career development counseling D. Performance management: pros and cons of the performance appraisal process; supervisor feedback E. Benefits: adequacy; administration of benefits F. Affirmative action program: effectiveness of target of opportunity efforts; attitudes toward G. Treatment: personal experiences of bias or barriers because of one's race, ethnicity or gender, or other areas EXHIBIT 1.14 Statements Made by Participants in African-American Employee Focus Group Recruitment of African-Americans scientists and engineers is inadequate. African-Americans have to be "more qualified" than other groups to get a job in the company. African-American students from historically black schools participate in summer intern programs but are rarely hired as full-time employees. African-Americans employees do not have access to the same training and development opportunities as white employees. Selection for training and development rests with supervisors. This allows supervisors wit- negative views of the potential of African-Americans to control who gets access to training. The promotion system is driven by potential ratings given by supervisors, and African-Americans are disproportionately given low potential ratings for promotability. White supervisors are not comfortable working with African-American employees, and many do not know how to give helpful performance feedback. Most of the African-American employees are pigeonholed into staff positions in management. African-Americans can't break into the "informal network," and are excluded from many social activities. Because there were so few African-Americans in higher level positions, there are no mentors and role models. African-Americans are stereotyped as being non-technical, lazy, and not suitable for management. Racial slurs and jokes are often heard on the plant floor. There is the "rule of three"no three African-American employees should be seen together in the cafeteria or other places. If so, majority group employees assume something is going on or ask, "Why are the African- American employees all eating together?" EXHIBIT 1.15 Statements Made by Participants in Women Employee Focus Groups Women are not treated as individuals but subjected to sex role stereotypes. They are viewed as emotional, non-technical, and subordinate. Women who display different behaviors (assertive, good technical skills) are characterized as "pushy or macho." A myth persists that many of the women in the company don't need to work. Many male supervisors don't know how to work with women as peers and therefore, treat female subordinates in condescending ways. Women are often made to feel that their ideas are inconsequential. They are cut off in meetings, especially when a woman is the only female in a group meeting. There are too few women in management and supervisory positions. None of the top women in the company are in line positions. There are no women in senior management. Women receive lower potential ratings than men in the company. Women are excluded from the "old boys" network. Women are always being tested with offensive sexual jokes or comments. Affirmative action stigmatizes women and makes them look like victims rather than leaders. Company benefits do not have programs to help women balance work and family. EXHIBIT 1.16 Statements Made by Participants in Asian Employee Focus Groups Asian employees are stereotyped as having excellent technical skilis but not having suitable skills for management. Asian employees are not promoted because supervisors tend to give them low ratings on communication skills. Asian employees are stigmatized by affirmative action and shouldn't be lumped with other minority groups in the company There are a very small number of Asian managers in the company relative to their numbers in the company. Most employees are ignorant of the diversity among Asian employees (e.g., Chinese, Korean, Japanese, etc.). EXHIBIT 1.17 Statements Made by Participants in White Male Employee Focus Groups White men are stereotyped as racist and sexist. The company's affirmative action plan has lowered opportunities for white employees. White supervisors have to be careful when managing minority employees. African-American employees are hostile toward white supervisors. The company's focus on equal employment opportunity doesn't include white men. Women employees are overly sensitive; plant environments are tough. EXHIBIT 1.18 Results of Employee Survey: Percentage of Employees with Favorable Responses All Employees African- Americans Question Asian Women 75 57 74 60 My department is effectively managed. People in my department have the skills and abilities to be an effective team. 85 79 82 78 75 60 70 61 I feel proud to work at Johnson Chemical I am satisfied with my opportunity to get a better job. 79 39 65 44 I like the work I do. 85 75 84 74 52 38 51 35 65 49 60 48 My manager gives me feedback that helps improve my performance. My department has a climate that respects employee diversity. My manager is sensitive to the relationship between my work life and my personal life. 61 58 59 49 77 54 65 55 My supervisor applies company policies and rules regardless of race, gender, etc. 9 INCIDENT Too Much Diversity? Bill Baldwin, president and founder of Baldwin Scientific Instruments, had just finished meeting with Tran, a Baldwin assembler of Vietnamese descent. Tran was very upset about the treatment that he and his Vietnamese co-workers had been receiving from their first-line Latino supervisors, a brother and sister who were originally from Peru. Tran had reported that the two supervisors did not respect any of the 10 Vietnamese assemblers, that they were intentionally mean and rude to them, and that they spoke negatively about them in Spanish behind their back. He pointed out that the assemblers are the key to the firm's success, and asked the president to take immediate action to restore the respect they deserved. Baldwin was aware that distrust and friction existed between the Latinos and Vietnamese. Fortunately, there had never been any fights or even loud arguments. However, he noticed that during lunch both groups sat apart and spoke in their native languages. At the annual company summer picnic and Christmas party, both groups also sat separately, and, while cordial, were never very friendly toward one another. Baldwin realized that part of the problem might be that the Latinos were often in supervisory positions whereas the Vietnam- ese were mostly assemblers. This structure reflected the fact that the Latino supervisors had far more experience and length of service than the new Vietnamese employees did. Bill also realized that another part of the problem might be that the head of the assembly department, a non-immigrant Californian who supervised the brother and sister, was not an effective leader because he refused to address employee relations problems. He knew a lot about assembling instruments, but allowed problems to fester among the diverse workforce rather than solve them. As Baldwin was pondering what should be done, the sales manager walked into the office and gleefully announced that another large order had just come in. Baldwin knew this would necessitate the hiring of five more skilled assemblers, and that advertisements in the southern California area newspapers would result in mostly Latino and Vietnamese applicants. He wondered what the firm's hiring policy should be, given that he did not want to create more problems. 1. From the description of Johnson Chemical International's (JCI) staffing policy (recruitment, hiring), what do you have to say about the ability and competence level of JCI employees in Chicago? Why so? 2. Review the company's employment trends (Exhibit 1.10). 2a. Use the plus (positive) and minus (negative) signs to mark each trend. (Note: For the last 03 trends, pay attention to the job titles and consider the power/influence level of these employees in the company.) 2b. What can you conclude about the diversity strengths and weaknesses in human capital management at JCI? Plus or Minus? EXHIBIT 1.10 Employment Trends There has been a 10 percent increase in employee growth at the Haverford Plant. The percent of women employees has increased from 10 to 15 percent. The percent of African-American employees has remained at 6 percent The percent of Asian employees has increased from 5 to 10 percent. Plant turnover averages 2 percent, but is ten times higher for women and African Americans The percent of women in management/supervisory positions increased from 2 to 2.7 percent The percent of African Americans in management supervisory positions increased from 1.5 to 2.0 percent. The percent of Asians in management supervisory postions increased from 2 to 3.5 percent. There has been an 8 percent increase in minority scientists (most of that represents Asians). The percentage of women scientists has grown by 2 percent The highest ranking woman in the company is Meredith Jensen, vice president and deputy counsel. The highest ranking African-American manager is vice president for equal opportunity and employee relations The highest ranking Asian manager is vice president, plant operations, 3. Review the focus group statements made by the African-American employees (Exhibit 1.14), by women (Exhibit 1.15), by Asian employees (Exhibit 1.16), and by White male employees (Exhibit 1.17). 3a. Which group(s) seem to face the most problems/issues associated with their group membership, socially and professionally in the company? For example? 3b. What do you have to say about the Power & Privilege level of the employee group(s) who face fewer issues than their colleagues? Why so? 4. If JCI want to promote multiculturalism in their Chicago branch, what HRM policies would they need to create and/or modify? 8 CASE Managing Diversity: Johnson Chemical International Jeff Rice, vice president of corporate human resources at Johnson Chemical International, was very anxious about the meeting he was about to have with John Henderson (CEO), Gary Polaski (secretary and general counsel), Steven Hong (vice president of operations, Haverford plant), and Matt Beale (vice president of public affairs and communications). The last two days had been quite tense in the company ever since an e-mail (see Exhibit 1.9) was sent throughout the company's Haverford plant. Johnson Chemical International is one of the world's leading manufacturers of specialty chemical products. The company was founded in 1902 by Herman Johnson, who was an MIT- trained chemist. Over the years, Johnson Chemical has built a reputation for producing high- quality products developed through cutting-edge technology and research. As a privately held corporation, Johnson Chemical does not report sales or earning figures. It has plants and operations in 30 countries and manufacturing facilities in 10 countries (Argentina, Canada, Kenya, Indonesia, Greece, United Kingdom, Japan, Taiwan, Malaysia, and Brazil). Johnson Chemical employs more than 14,500 people worldwide with its headquarters located in Chicago. Employment in the United States is about one-half of its total workforce worldwide, with a majority of those employees in the Chicago area. Because of its need for highly trained scientists and technicians, the company recruits a substantial number of employees with training in the science and engineering fields. The U.S. manufacturing operations are conducted at the Haverford plant, about 15 miles outside of Chicago. The state-of-the-art plant is about three million square feet and is one of the most modern chemical manufacturing facilities in the world. The facility also has state-of- the-art laboratories and houses the company's research division. In addition to its hourly employees, the company employs a large number of R&D employees consisting of scientists, technicians, and engineers. Because of its need for highly trained technical employees, the company conducts extensive recruiting at the major colleges and universities with outstanding science and engineering programs. A majority of Johnson Chemical's top management has come from the technical ranks of the company. Its current CEO, John Henderson, is a chemical engineer and the former president of international operations. THE MEETING John Henderson: Come on in, Jeff. Good morning, folks. I want to thank you for meeting with me this morning. We have a major problem on our hands. A crude e-mail has sent a tidal wave through the company. It's already hit the press. We've had several calls from the media asking for us to comment on what has happened. Matt, how are we handling the calls? Matt Beale: John, I have issued a press release that basically states that Johnson Chemical does not tolerate any form of racist or sexist jokes and the individual responsible will be dealt EXHIBIT 1.9 TV TV3 The e-mail message Morning Puzzle: Do you recognize these acronyms? UFO IBB NAACP Answer: UFO = Ugly ------- Orientals; IBB = Itty bitty breasts; and NAACP = -----, apes, alligators, coons and possums with appropriately. Our information systems folks are trying to determine the origins of the e-mail. Gary Polaski: John, don't worry. We are on firm legal grounds if we fire the individual or individuals responsible for using the company e-mail to send racist and sexist jokes. I think we should take very strong action when we find out who is responsible. Steven Hong: Well, we better do something fast because it is certainly affecting plant operations. People aren't working but are busy talking about the e-mail. I'm afraid that it really has taken people off track for the time. It also seems to be unleashing some grievances that our women and minority employees have about their treatment in the company. The men and white employees seem to be worried that they're going to all be blamed for the e-mail or, even worse, that they agree with the sentiments in that e-mail. John, I'm worried about the impact of this on employee morale. Jeff Rice: John, since the e-mail I have had several women and minority employees, especially the African-American employees, come to my office to talk about problems and other incidents in the company. To be honest, it has caught me off guard. We have an excellent equal opportunity/affirmative action program in place and have made some strides in hiring women and minorities in the last five years (see Exhibit 1.10). I am wondering if we've really done enough. John Henderson: I'm not sure what you mean, Jeff. Our company has enjoyed a good reputation as a leader in the industry when it comes to equal employment opportunity. How could this happen? Jeff Rice: Well, I was thinking about this last night. You know, John, in the last few years we have begun to have a more diverse group of employees after years of being a company with 28 Perti. Human Resource Management in Perspective EXHIBIT 1.10 Employment Trends There has been a 10 percent increase in employee growth at the Haverford Plant. The percent of women employees has increased from 10 to 15 percent. The percent of African-American employees has remained at 6 percent The percent of Asian employees has increased from 5 to 10 percent. Plant turnover averages 2 percent, but is ten times higher for women and African Americans. The percent of women in management/supervisory positions increased from 2 to 2.7 percent. The percent of African Americans in management/supervisory positions increased from 1.5 to 2.0 percent The percent of Asians in management/supervisory positions increased from 2 to 3.5 percent. There has been an 8 percent increase in minority scientists (most of that represents Asians). The percentage of women scientists has grown by 2 percent. The highest ranking woman in the company is Meredith Jensen, vice president and deputy counsel. The highest ranking African-American manager is vice president for equal opportunity and employee relations The highest ranking Asian manager is vice president, plant operations. primarily white male employees. Perhaps, it was only a matter of time before these tensions emerged. John Henderson: Well, we're going to have to get a handle on the issues. Jeff, I want you and your staff to find out what the issues are and give me a report on your findings in 60 days. After we review your report, we'll have to determine what we need to do. Get whatever help you need from consultants. I expect a negative media backlash on this thing, and we're going to have to show that we are a company prepared to deal with tough issues. I have prepared a companywide message that will be sent to all employees this afternoon (see Exhibit 1.11). RICE'S REPORT Two months after the meeting, Jeffrey Rice sent John Henderson and the rest of the executive staff a 20-page confidential report of his findings. Excerpts from his report are contained in Exhibits 1.121.18. With the assistance of a consulting firm, Rice organized focus groups with African-American employees, women employees, Asian employees, and white male EXHIBIT 1.11 Letter to Employees from John Henderson, CEO Dear Johnson Employees: By now, you have heard about the e-mail that was sent through the company's computer system that contained offensive comments. I want to be very clear: We will not tolerate behavior that makes our work environment uncomfortable and hostile for others. The telling of racist, sexist, or offensive comments is not appropriate behavior at Johnson Chemical. It is disrespectful of fellow employees. Using company e-mail to perpetuate offensive views of others violates company policy. Rest assured that we will see that those responsible for sending the e-mail are duly disciplined. I am counting on you to respect your fellow employees and to commit to ensuring a working climate that is tolerant of our diversity. Johan Hendern John Henderson employees. Focus groups were recruited on a volunteer basis and were facilitated by the consultants to assure confidentiality and candidness (see Exhibit 1.12). The topics covered in the focus groups are shown in Exhibit 1.13. The views expressed by each group are summarized in Exhibits 1.141.17. In addition to the focus groups, an employee attitude survey was also administered to all plant employees. The results of the survey are shown in Exhibit 1.18. QUESTIONS 1. Evaluate Johnson Chemical's actions in dealing with the e-mail. 2. Examine the data contained in Exhibits 1.10 and 1.121.17. What seem to be the mos: significant diversity issues at Johnson Chemical? 3. What is the cost of these problems to the organization? What will happen if they are no: addressed? 4. Where and how do these issues need to be dealt with? 5. What support, skills, and training do managers need to deal with these issues? 6. What human resource management systems or policies need to be examined and possibl: modified? EXHIBIT 1.12 Letter of Invitation to Participate in Focus Group Discussions As you know, we continue to be committed to having an equal opportunity work climate at Johnson Chemical. In an effort to achieve this goal, we invite you to participate in a focus group to help us collect data around issues of diversity. The focus groups will be organized so that we bring together different categories of employee groups over the next two months. To assure confidentiality and anonymity, the actual discussion sessions will be facilitated by an outside consultant group we have contracted to assist us in our efforts. Discussion will focus on your experiences and thoughts on topics related to our human resource policies and systems, and equal opportunity work climate I hope you will be willing to participate in one of the focus groups. Thank you in advance for your help. If you have any questions, please call my office. I'll be happy to provide additional information. Sincerely, Jeffrey Rice Jeffrey Rice, Vice President Corporate Human Resources EXHIBIT 1.13 Focus Group Discussion Areas 1. Comment on your experience and view of the following areas of the company: A. Recruitment and hiring: sources of recruits; selection criteria; orientation of new employees B. Promotion: fairness of rating system; adequacy of opportunity C. Training and career development access to training; selection of trainees; adequacy of and availability of career development counseling D. Performance management: pros and cons of the performance appraisal process; supervisor feedback E. Benefits: adequacy; administration of benefits F. Affirmative action program: effectiveness of target of opportunity efforts; attitudes toward G. Treatment: personal experiences of bias or barriers because of one's race, ethnicity or gender, or other areas EXHIBIT 1.14 Statements Made by Participants in African-American Employee Focus Group Recruitment of African-Americans scientists and engineers is inadequate. African-Americans have to be "more qualified" than other groups to get a job in the company. African-American students from historically black schools participate in summer intern programs but are rarely hired as full-time employees. African-Americans employees do not have access to the same training and development opportunities as white employees. Selection for training and development rests with supervisors. This allows supervisors wit- negative views of the potential of African-Americans to control who gets access to training. The promotion system is driven by potential ratings given by supervisors, and African-Americans are disproportionately given low potential ratings for promotability. White supervisors are not comfortable working with African-American employees, and many do not know how to give helpful performance feedback. Most of the African-American employees are pigeonholed into staff positions in management. African-Americans can't break into the "informal network," and are excluded from many social activities. Because there were so few African-Americans in higher level positions, there are no mentors and role models. African-Americans are stereotyped as being non-technical, lazy, and not suitable for management. Racial slurs and jokes are often heard on the plant floor. There is the "rule of three"no three African-American employees should be seen together in the cafeteria or other places. If so, majority group employees assume something is going on or ask, "Why are the African- American employees all eating together?" EXHIBIT 1.15 Statements Made by Participants in Women Employee Focus Groups Women are not treated as individuals but subjected to sex role stereotypes. They are viewed as emotional, non-technical, and subordinate. Women who display different behaviors (assertive, good technical skills) are characterized as "pushy or macho." A myth persists that many of the women in the company don't need to work. Many male supervisors don't know how to work with women as peers and therefore, treat female subordinates in condescending ways. Women are often made to feel that their ideas are inconsequential. They are cut off in meetings, especially when a woman is the only female in a group meeting. There are too few women in management and supervisory positions. None of the top women in the company are in line positions. There are no women in senior management. Women receive lower potential ratings than men in the company. Women are excluded from the "old boys" network. Women are always being tested with offensive sexual jokes or comments. Affirmative action stigmatizes women and makes them look like victims rather than leaders. Company benefits do not have programs to help women balance work and family. EXHIBIT 1.16 Statements Made by Participants in Asian Employee Focus Groups Asian employees are stereotyped as having excellent technical skilis but not having suitable skills for management. Asian employees are not promoted because supervisors tend to give them low ratings on communication skills. Asian employees are stigmatized by affirmative action and shouldn't be lumped with other minority groups in the company There are a very small number of Asian managers in the company relative to their numbers in the company. Most employees are ignorant of the diversity among Asian employees (e.g., Chinese, Korean, Japanese, etc.). EXHIBIT 1.17 Statements Made by Participants in White Male Employee Focus Groups White men are stereotyped as racist and sexist. The company's affirmative action plan has lowered opportunities for white employees. White supervisors have to be careful when managing minority employees. African-American employees are hostile toward white supervisors. The company's focus on equal employment opportunity doesn't include white men. Women employees are overly sensitive; plant environments are tough. EXHIBIT 1.18 Results of Employee Survey: Percentage of Employees with Favorable Responses All Employees African- Americans Question Asian Women 75 57 74 60 My department is effectively managed. People in my department have the skills and abilities to be an effective team. 85 79 82 78 75 60 70 61 I feel proud to work at Johnson Chemical I am satisfied with my opportunity to get a better job. 79 39 65 44 I like the work I do. 85 75 84 74 52 38 51 35 65 49 60 48 My manager gives me feedback that helps improve my performance. My department has a climate that respects employee diversity. My manager is sensitive to the relationship between my work life and my personal life. 61 58 59 49 77 54 65 55 My supervisor applies company policies and rules regardless of race, gender, etc. 9 INCIDENT Too Much Diversity? Bill Baldwin, president and founder of Baldwin Scientific Instruments, had just finished meeting with Tran, a Baldwin assembler of Vietnamese descent. Tran was very upset about the treatment that he and his Vietnamese co-workers had been receiving from their first-line Latino supervisors, a brother and sister who were originally from Peru. Tran had reported that the two supervisors did not respect any of the 10 Vietnamese assemblers, that they were intentionally mean and rude to them, and that they spoke negatively about them in Spanish behind their back. He pointed out that the assemblers are the key to the firm's success, and asked the president to take immediate action to restore the respect they deserved. Baldwin was aware that distrust and friction existed between the Latinos and Vietnamese. Fortunately, there had never been any fights or even loud arguments. However, he noticed that during lunch both groups sat apart and spoke in their native languages. At the annual company summer picnic and Christmas party, both groups also sat separately, and, while cordial, were never very friendly toward one another. Baldwin realized that part of the problem might be that the Latinos were often in supervisory positions whereas the Vietnam- ese were mostly assemblers. This structure reflected the fact that the Latino supervisors had far more experience and length of service than the new Vietnamese employees did. Bill also realized that another part of the problem might be that the head of the assembly department, a non-immigrant Californian who supervised the brother and sister, was not an effective leader because he refused to address employee relations problems. He knew a lot about assembling instruments, but allowed problems to fester among the diverse workforce rather than solve them. As Baldwin was pondering what should be done, the sales manager walked into the office and gleefully announced that another large order had just come in. Baldwin knew this would necessitate the hiring of five more skilled assemblers, and that advertisements in the southern California area newspapers would result in mostly Latino and Vietnamese applicants. He wondered what the firm's hiring policy should be, given that he did not want to create more problems. 1. From the description of Johnson Chemical International's (JCI) staffing policy (recruitment, hiring), what do you have to say about the ability and competence level of JCI employees in Chicago? Why so? 2. Review the company's employment trends (Exhibit 1.10). 2a. Use the plus (positive) and minus (negative) signs to mark each trend. (Note: For the last 03 trends, pay attention to the job titles and consider the power/influence level of these employees in the company.) 2b. What can you conclude about the diversity strengths and weaknesses in human capital management at JCI? Plus or Minus? EXHIBIT 1.10 Employment Trends There has been a 10 percent increase in employee growth at the Haverford Plant. The percent of women employees has increased from 10 to 15 percent. The percent of African-American employees has remained at 6 percent The percent of Asian employees has increased from 5 to 10 percent. Plant turnover averages 2 percent, but is ten times higher for women and African Americans The percent of women in management/supervisory positions increased from 2 to 2.7 percent The percent of African Americans in management supervisory positions increased from 1.5 to 2.0 percent. The percent of Asians in management supervisory postions increased from 2 to 3.5 percent. There has been an 8 percent increase in minority scientists (most of that represents Asians). The percentage of women scientists has grown by 2 percent The highest ranking woman in the company is Meredith Jensen, vice president and deputy counsel. The highest ranking African-American manager is vice president for equal opportunity and employee relations The highest ranking Asian manager is vice president, plant operations, 3. Review the focus group statements made by the African-American employees (Exhibit 1.14), by women (Exhibit 1.15), by Asian employees (Exhibit 1.16), and by White male employees (Exhibit 1.17). 3a. Which group(s) seem to face the most problems/issues associated with their group membership, socially and professionally in the company? For example? 3b. What do you have to say about the Power & Privilege level of the employee group(s) who face fewer issues than their colleagues? Why so? 4. If JCI want to promote multiculturalism in their Chicago branch, what HRM policies would they need to create and/or modify