Case Analysis - Spencer Owens & Co

Case Analysis- Spencer Owens & Co

Introduction

Spencer Owens & Co is an international consulting firm focused on economic development. They were one of the first in their business to start a great effort to increase diversity in their company. In the mid-1980s, they decided to increase gender, racial, and ethnic diversity for all level. By 1995 Spencer Owens & Co had gain a big success and was considered a model of successful diversity efforts, as minorities had been holding positions at all levels of the company, including senior administrators . In 2000, following this affirmative action goal, they had hired Agnes Richards as the first female director. Spencer & Owens had been proud of their reputation and incredible success as one of the most diverse companies but it soon became obvious to Richards that there is a growing friction around race relations. Spencer Owens even devoted its employees with lots of training and follow up discussions to raise people’s awareness of individual prejudices and institutional racism and sexism. Top management also founded two networking groups for women employees and for employees of color. Richards had noticed how quick employees of color bring charges of racism against whites in the organization. This racial tensions even grew more when she fired a female African-American manager in Human Resources because of her attitude problem. At this point Richards and her management team decided to hire consultants to study and help them to correct their strategy. The consulting team led by an African American man, interviewed a cross-section of employees. The consultants’ findings have shown there was absolutely a strong racial tension within the firm. The interviews disclosed important points: • Employees have concerns about the affirmatory action enterprise • White employees feel that the diverseness plan is adversely impacting the quality of the firm’s work • White male directors are opposed to new methods brought away by newer employees • Peoples of colour are critical of affirmatory action plan including superficial consequences and feel that they are tolerated and non accepted • Peoples of colour feel their thoughts and ideas are routinely disregarded • There was fright of being called a racialist.

The Problems Statement

There are several reasons that Spencer & Owens are experiencing these problems :

The Spencer & Owens has built a diverse workforce but not a diverse work output. This problem can illustrated better by Thomas & Ely’s discrimination and fairness paradigm. (Thomas and Ely, Making Differences Matter, October 1996) Thomas and Ely’s paradigm suggests that “ progress in diversity is measured by how well the company achieves its recruitment and retention goals rather than by degree to which conditions in the company allow employees to draw on their personal assets and perspectives to their work more effectively.”

The survey conducted by consulting group was showing surprising responses. The ninety-two percent of employees’ participation had indicated they are care and concern for these situations in Spencer Owens company. As a result, from exhibit 1, we can see that the managers are very committed not only to the company’s missions but also the diversity policies. Around 70-80 percent of managers love the organization and think the company is successful with its affirmative action goals but their employees do not think the same as most of the Support staff and the minority program staff (around 70 percent or more) disagree with the success of the diversity programs.

Additionally, more than a half of program staff (around 55 percent) believe that there is still racial polarization in their departments.

I think, despite the company’s good aims their approaches and their management skill are the direct causes leading to the growing conflicts.

There is lack of communications in Spencer & Owens. The company’s business model of consultants working with clients primarily and not connected as much with internal is an issue.

The results of survey had shown, the mission of the company has been weakened in the past few years.

Diversity and focus on color has became part of organizations identity and the original goal of ‘foreign and economic development’ was forgotten.

The new management have allowed networking groups too