Defining the Attributes and Processes that Enhance the Effectiveness of Workforce Diversity Initiatives in Knowledge Intensive Firms

Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author.Abstract Workforce diversity continues to be a key focus for organizations, driven by globalization of the U.S. economy and the desire for organizations to more accurately reflect the demographic diversity of the US population. Yet, most research on diversity in organizations has focused on the outcomes associated with workforce diversity and not on the processes that can enhance diversity in organizations. We address this limitation by developing a conceptual model and propositions that highlight the attributes of effective workforce diversity initiatives and the process through which workforce diversity initiatives become effective. We focus on knowledge intensive work and argue that in this context, the nature of the work is directly tied to societal stereotypes of underrepresented minorities, making knowledge intensive firms a rich environment to examine diversity initiatives and explore the dynamics that hinder retention and promotion for underrepresented minorities in these firms. We close by discussing directions for future research on workforce diversity initiatives. Workforce Diversity Initiatives-3-The Diversity Challenge Workforce diversity has continued to grow in importance to organizations. This increased focus has been driven by globalization of the US economy, the growing demographic diversity in the US population, and greater knowledge of the benefits that can ensue from effective management of diversity. To reap these benefits, efforts to increase diversity in the corporate sector have been underway for more than two decades (Thomas & Ely, 1996). Yet, despite these efforts, minorities continue to be underrepresented in upper-management ranks in organizations. There are four black, four Hispanic, and five Asian CEOs of Fortune 500 companies, and it is estimated that only 10% of corporate officers in Fortune 500 companies are These bleak statistics are often attributed to the challenges organizations face in attracting, retaining, and promoting a diverse workforce (Thomas & Gabarro, 1999). In an effort to address these challenges, it is estimated that large corporations spend billions of dollars on diversity training and devote resources to a variety of diversity-related initiatives such as hiring diversity management staffs, establishing corporate-sponsored affinity groups, and sponsoring programs aimed at attracting and retaining a diverse workforce (Corporate Leadership Council, 2003; Hansen, 2003). Given these substantial investments in diversity initiatives, it becomes important to understand the …