United States    Office of Administration
        Environmental    and Resources       September
        Protection Agency  Management (PM-224)    1992



EPA        Study of Cultural


             Diversity
             Literature Search

             and Best Practices

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            Table of Contents
Background                                   4
Findings In Brief                               5
Recommendations                             6
Introduction                                  7
Need for Valuing and Managing Diversity         8
Findings                                      9
 Recruitment                                 10
Mentoring                                    10
Core Groups                                 11
Performance Management                      11
Training                                      12
Cultural Diversity and Affirmative Action         13
Cultural Diversity and TQM                     13
Resources to Implement a Diversity Initiative     14
Communications                              14
Involvement/Inclusion                          15
Knowledge and Skills                           IS
Information                                   16
Influence                                     16
Incentives                                    16
Recommendations                             17

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 Findings In Brief
    The organizations we surveyed decided to
address cultural diversity to Improve their capability
to:

    Address employee complaints about human
    resources Issues (perceived inequities in
    awards, promotions, training, etc).

    Prepare to address the organizational
    concerns related to the Workforce 2000
    predictions.

    Address business goals In an Increasingly
    diverse market (le. minority and women
    employees on the staff may be better able
    to deal with minority and women custom-
    ers).

    Private and public organizations have used a
variety of techniques to help Implement the Diver-
sity Initiative within their organizations. The most
common Included;

    An aggressive recruitment strategy to
    attract qualified minorities and women.

    A mentoring program to help employees
    grow by developing a formal support
    network

    Core groups that help Individual or groups
    of employees focus on needs, feelings or
    attitudes that are of concern. These are not
    Intended to be gripe sessions. The focus Is
    on providing a forum for employees to be
    In a support group setting that can serve as
    a sounding board and fosters encourage-
    ment and support In areas of need
    Performance management criteria and
    rewards for managers that advance diver-
    sity efforts within the organization.

    Comprehensive training strategies to
    address diversity In the workplace.

    The Diversity and Total QuaUty Initiatives have
been combined In several of the organizations
surveyed  Their rationale, which Is very much In line
with the EPA strategy. Is  that continuous review and
Improvement of work processes can be significantly
enhanced by Inclusion of  employees with diverse
backgrounds and capabilities.

    Organizations that are recognized as leaders in
Managing Diversity have Incorporated a comprehen-
sive communications strategy as part of their effort
They are careful to use every opportunity to
advance the concept of diversity in the workplace.
SPA Cultural Diversity Best Practices
                                        PageS

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Introduction
    In May, 1990. the U. S. Environmental Protec-
tion Agency (EPA) bunched a comprehensive
Initiative to address cultural diversity as a manage-
ment priority. This action was taken In an effort to
address employee concerns that the Agency was not
making the maximum use of available talents within
the Agency. The Initiative Is to be one of the
centerpieces of die management Improvement and
cultural change agenda set by William K. Rellly and
F. Henry Habldit, the Administrator and Deputy
Administrator of EPA. A taskforce was created to
develop the framework for an EPA Cultural  Diver-
sity Study. The goal of the taskforce 'Is to con-
struct a profile of past practices and prevailing
attitudes with regard to staffing, staff development
and general sensitivity towards minority and
women's concerns.  This process should also assist
In the Implementation of total quality management
principles which are based, In part, on creating an
Institutional culture that will draw upon the unique
contribution of each person In the workforce."

    The Workforce Diversity Taskforce was
organized Into four working groups:

               Literature Search and
                  Best Practices

                Employee Survey.

                DM Analysis, and

                Training.

    The Literature Search and Best Practices Work
Group developed and used a set of Interview
questions to guide the group's Interview process In
benchmarking organizations that have launched a
diversity Initiative. A systems perspective on
workforce diversity was the underlying principle of
the Interview guide.  The guide followed a program
development format to include questions pertaining
to what prompted the search for managing diversity.
what activities or processes were used to assess the
diversity Issues, and what types of programs resulted
from their organizational assessment. The Inter-
views focused on the organizational reasons for
addressing cultural diversity, basic parts of their
Initiatives, methodologies used the effectiveness of
the Initiatives, and the organization's point of
contact for Cultural  Diversity.

    The group was briefed by several Federal
agencies on their diversity Initiatives. Including the
Central Intelligence Agency, the Internal Revenue
Service. Department of Labor. Department of
Transportation, and  the United States Army. A
number of private corporations were visited.
Including the Digital  Computer Corporation, the
Washington Post; Dupont, and Proctor & Gamble.
In addition, members of the group  reviewed
documentation and had discussions with officials
from Hughes Aircraft. Corning, and Avon.

    Through discussions with corporate senior
managers. Human Resource and Equal Employment
Opportunity staffs, we sought to obtain differing
views and experiences In managing cultural diversity
In the workplace.  We were pleased with the open
and enthusiastic discussions that took place during
all of our visits.

    Throughout our reviews, we recognized the
Importance of drawing sound conclusions about the
necessary conditions required to support and
develop a culturally diverse workforce. But. we also
recognized the need to maintain a  degree of
confidentiality regarding  specific problems or Issues
that were confided during our Interviews. The
conclusions generated In this report are based on
the thoughts and perceptions of the members of the
Best Practices Group, coupled with the experiences
and Ideas of the officials from die organizations  we
contacted
EPA Cultural Diversity Best Practices
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Findings
    Through our benchmarking efforts, we have
drawn a number of pertinent conclusions on how
best to Incorporate cultural diversity into a compre-
hensive organizational effectiveness strategy at EPA:

    To effectively Implement the Diversity Initiative,
a high degree of Involvement and commitment is
necessary from our senior managers.  Through
example, they can set the new course toward
promoting cultural change within the Agency. By
example they should ensure that their hiring reflects
the work force demographics, and that promotions.
awards and other human resource decisions are
based on performance.

    To accomplish this change, we will need
    new skills and an enhanced level of aware-
    ness. Thlslearnlnprocdevelopmentatall
    organizational levels for all employees.

    The change process wlK require an ex-
    tended period of time to Implement and
    maintain, contingent on the size of the
    organization and the availability of re-
    sources.

    Successful  Implementation will necessitate
    the Integration of cultural  diversity factors
    Into the overall review, revamping and
    utilization of agency human resources
    policies and practices.
    The Diversity Initiative needs to be clearly
    articulated In written policies, practices
    and procedures. A management strategy
    that outlines specific programs, goals.
    expectations, and methods of accountabil-
    ity Is necessary.

In addition, organizations that are effectively
addressing diversity in the workplace have Identi-
fied two guiding principles.  Rrst.lt Is Important to
recognize that management pbys a significant role
In setting and reinforcing the organization's culture.
Second, employee participation and Involvement Is
crucial for the successful Implementation of an
organization's management agenda.

    Private and public organizations have used a
variety of techniques to help Implement the
Diversity Initiative within their organizations. The
following Is a brief  summary of some of these
techniques.
EPA Cultural Diversity Best Practices
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Core Groups
                     Performance Management
    In an effort to help employees relate to one
another and gain interpersonal skills, the practice of
setting up "Core Groups" has been implemented by
one of the organizations surveyed. Several core
groups meet routinely to discuss information,
feelings, attitudes, and behaviors that are of concern
to the individual members.  This vehicle allows
employees to experience feelings, express attitudes,
and demonstrate behaviors without repercussions
from the other members of the group.  In essence.
the group is a laboratory for individual growth.

    Participation in the groups is voluntary. How-
ever, participation in such groups is perceived to be
illustrative of an employee's interest in developing
stronger interpersonal skills. All members of the
organization have an understanding that building
interpersonal skills is a signal to management of the
person's  interest and investment in building a
capacity for managerial responsibilities.
    Core groups are comprised of either employees
or managers but are not mixed. This is done to
maximize confidentiality. The company did state,
however, that there could be exceptions  if all of the
participants agreed.

    In all of our discussions with the organization
representatives, the question of how to induce
managers to take the diversity issue seriously was
raised.  Two of the private sector organizations
that we visited hold their managers accountable for
managing or addressing diversity. Management
bonuses are contingent on positive performance in
this area. The major inducement, however, is the
expectation of the management peer group to make
progress in this area.

    In one particular organization, managers are
provided with yearly "health assessment" data
feedback to determine the manager's progress in
implementing diversity in his or her organization.
EPA Cultural Diversity Best Practices
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 Cultural Diversity and Affirmative Action
Cultural Diversity and Total Quality
 Management
    Most of the organizations make a distinction
between Managing Diversity and Affirmative Action.
it li Important, they believe, for the difference to be
apparent to those Involved In the diversity effort
Ahhough there I* no doubt In dielr minds that
Affirmative Action and Managing Diversity are
related Issues.

    The general feeling Is that Affirmative Action
requirements are legally-mandated employment
criteria. Affirmative Action is also  seen as a way to
redress discriminatory practices. Cultural dverslty
Is understood to be a resource utilization Issue.
Diversity Is seen as a strategy to ensure maximum
utilization of all employees. The focus Is on:

    valuing and developing Indvfdual capabilities.

    the employee's ability to work with groups.

    the organization provtdng the  resources, work

    procedures, and management style to support
this effort.

    Affirmative Acton and Diversity, working
together, form i major portion of the organization's
employment stratify for workforce planning and
utilization.  The outcome "wlP Impact the
organization's overall performance.
     The Cultural Diversity and Total Quality
 initiatives have been combined by several major
 corporations and a Federal agency. Their rationale
 Is that continuous review and improvement of work
 processes an be significantly enhanced by Inclusion
 of employees with diverse backgrounds and capabili-
 ties.  Diverse employees are apt to provide a range
 of different perspectives that would have a positive
 Impact on the work processes.

     This way of thinking Is very much In One with
 Mr. Habiohf s  vision regarding the two processes.
 "This process should also assist In the Implementa-
 tion of total quality management principles, which
 are based In part, on creating an institutional
 culture that wiB draw upon the unique contribution
 of each person In the workforce."
EPA Cultural Diversity Best Practices
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 Involvement/Inclusion
Knowledge and Skills
    The Best practices work group has Identified
the principle of Involvement/Inclusion as salient In
managing cultural diversity. This principle Is further
defined by four underlying attributes. These
attributes Include: Knowledge and Skills, Informa-
tion. Influence, and Incentives.  From the manage-
ment perspective. Involvement entails having the
organization provide programs or management
Initiatives that Increase the level of these factors
among the Agency's employees.

    In  our assessment of other organizational
approaches to managing diversity, we Identified the
Involvement/Inclusion principle operating at varying
degrees. As a point of reference, the Best Practices
Work  Group conducted an Illustrative appraisal of
EPA practices to demonstrate this factor In opera-
tion here at the Agency.
    The EPA Institute and Superfund Academy are
Illustrative of current operations whose purpose Is
to enhance our employees work-related knowledge
base and to increase work performance skids.
Improving the knowledge and skills level has positive
effects on work performance and effectiveness.

GLO (Greater Leadership Opportunities) Is another
program that demonstrates die enhancement of
EPA employee knowledge and skills levels.  It
provides visibility for women and minorities and
opportunities to enhance their leadership and
management skills dtrough formal  dassroom training
and developmental/rotational assignments, thereby
enabling them to compete more successfully for
supervisory positions. One of the fundamental
activities used to raise this knowledge and skill level
Is die mentoring process.  One salient outcome of
this mentoring process is a higher degree of under-
standing of die Agency's mission and goals.

    The Minority Academic Institutions Task Force
has provided a framework and action plan for die
Agency to have a more proactive relationship wldi a
number of Colleges and Universities. Through this
Initiative Agency employees wlB have die opportu-
nity to work with diese Institutions to teach, help
develop curriculum and to promote environmental
careers. The Agency will also benefit by employing
faculty and students for a variety of positions.
EPA Cultural Diversity Best Practices
                                        Page IS

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Recommendations
    Based on the Information gathered through our
survey, a number of factors will be critical for
success In our dvenity Initiative at EPA:

    Continued Involvement and commitment
    from our senior managers. Through
    example, they can set the new course
    toward promoting cultural change within
    the Agency.  By example they should
    ensure that their hiring reflects the work
    force demographics, and that promotions.
    awards and other human resource deci-
    sions are based on performance.

    Increased Inclusion/Involvement by our
    employees.

    Recognition and understtndng, up front.
    that a quality effort will require time to
    Implement and carry out as part of the
    Strategic Planning effort.

    Appropriate level of resources need to be
    devoted to the Initiative. Should provided
    for a senior manager and staff to carry out
    the Diversity Initiative. Should also ensure
    that the Diversity manager has the neces-
    sary support and endorsement from top
    rvtiittgement

    Adoption of a comprehensive strategy to
    Implement dlverslty-by ensuring continuous
    assessment and Improvement of how we
    use our human resources programs and
    policies.

    Develop the necessary training and Incen-
    tive programs to meet the needs of both
    managers and employees In the Agency.
All facets of organizational training and
development should include a cultural
diversity component

Establish the mechanisms to develop formal
mentoring and core group programs for
employees that are Interested In getting
additional support

The Diversity Initiative need* to be dearly
articulated In written potctes. practices, and
procedures. A management strategy that
outlines specific programs, goals, expecta-
tions, and methods of accountability Is
necessary.

Need to continue wHh an aggressive
recruitment program coupled with pro-
grams to Increase retention and develop-
ment of our diverse mff.

The Agency Include managing diversity
criteria In supervisory and managerial
performance standards. As reinforcement.
bonus decisions should consider positive-
performance In this area.

Communications on the Agency's Change
Management Triad (TQM. Strategic
Planning. Cultural Diversity), needs to  ake
place at all levels of the organization and
should be integrated as a common  theme
to facilitate the organizational change
process.

Need to foster a decentralized approach to
promote cultural diversity creativity and
innovation across EPA.
BRA Cultural Diversity Best Practices
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