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 ------- 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 ------- 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 ------- 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 Page 7 ------- 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 Page 9 ------- 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 Page ------- 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 Page 13 ------- 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 ------- 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 Page 17 ------- ------- ------- ------- ------- ------- ------- ------- ------- |