Company Background:
Dravities Industries is a multinational conglomerate based in
Norfolk, VA. It operates in a number of industries, but most heavily in
building technologies, information systems, and infrastructure
development. The company was founded in the early 20th century as a
manufacturer of heavy equipment. Using mostly mergers and acquisitions,
it grew in size and complexity until it gained a spot on the DOW Jones
Industrial Average in 1979. Dravities Industries remained on the DOW
Jones until 2001, when company performance declined following a series
of poor investments.
Dravities remains a global economic powerhouse but has a severely
diminished capacity. Though it still draws hundreds of millions in
profit every year, the company seems to lack a clear vision or the
ability to make strategic moves in the evolving marketplace. The company
has gone through three CEOs in the last eight years. None of them have
been able to hit the three-year mark or affect any change in the
company’s culture or performance. Productivity of work teams and
individuals in the company appears stagnate and perhaps in decline. With
no notable innovations in the last ten years, the company appears to be
coasting on past successes. Overall, Dravities employs 87,000 workers
across the globe with roughly a third of those being in the state of
Virginia.
Your Role & Organizational Issues:
Your are the VP & Head of Compensation at Dravities Industries.
In your role, you have access to sensitive information, that even your
direct boss, the EVP of Human Resources, cannot access as in contains
sensitive, compensation-related information of her executive peers. You
also engage in periodic meetings with the CEO and a small subsection of
top Dravities executives, who comprise the company’s compensation
committee. Although it can be intimidating, engaging with this group of
executives tends to foster a sense of privilege and insider-ship with
this influential group.
Recently you noticed data trends that are deeply concerning. Some summary headings of these trends are as follows:
- 23% of the workforce are from non-white racial demographics, but
less than 2% of promotions in the last five years has gone to an
individual in one of these groups. - 42% of the workforce was made up of women, but only 12% of middle
management were women and there are no women in upper-level management. - People from non-white racial demographics are paid $.89 on the $1.00
compared to white employees, in the case of women they are paid $.82 on
the $1.00 – these both hold true even in comparable positions in the
organization.
Furthermore ― before, during, and after some of your compensation
committee meetings, you’ve noticed or overheard executives using
degrading and demeaning terminology to discuss employees from
underrepresented groups. For example, they referred to one individual
from the accounting department as “the little colored girl” and talking
about another leader in the manufacturing division as seeming “to be
lacking that Mexican work ethic” – the employee referenced was of
Cuban-American descent. When discussing a promotion for an employee from
their operations in Nigeria, one that would require relocating the
employee to the headquarters in Virginia, one executive commented “We
don’t need to let any more of them into our country – let’s find someone
else.”
Considering the above situation and wearing the hat of the above describe role, what would you do?
Please write a brief essay. The five-paragraph format
is recommended and the following rubric will be applied:
- Format & Writing– Starts with an
introduction that hooks your reader and introduces your themes. The
theme (usually three of theme) offer concise, yet deep discussion in a
logical sequence. Ends with a synthesize summary that may feature the
call to action. - Theory Application & Analysis – Demonstrates understand of theory and applies concepts to situation within useful analysis.
- Logic & Thinking Demonstrated – Overall discussion and position of case demonstrates logic and practicality.
In your approach, please consider how you might help the executives
intrinsically change their views/thinking/behavior (i.e., best if they
own changes: doing because that want to, not because they have to). You
may apply any theories covered so far this semester, including the
following theories featured in Chapter Five:
- Similarity-Attraction Paradigm
- Justification- Suppression Model
- Social Identity Theory
- Cognitive Diversity Hypothesis
- Schema Theory
- Social Cognitive Theory