Managing Diversity

Marathon Oil Company Actively Manages Diversity Marathon Oil Company (MOC) is a large US integrated oil firm where diversity is an important element of its business strategy and is integrated into every facet of its human resource planning. Although an integrated company marathon’s refining and marketing activities are operated through an affiliate, Marathon Ashland Petroleum (MAP), a venture with Ashland in which Marathon has a 62% interest. MOC and its affiliate, MAP both has been successful at driving diversity synergies by linking and insuring consistency in their approaches to formulating diversity business cases and strategies, plus implementing common diversity initiatives. While aligned, each company has autonomy in implementation of diversity programs. The presidents of each of these affiliated companies, Gray Heminger (MAP) and Clarence Cazalot (MOC), have committed resources (time, Money, and people) to insure that diversity drives business success. The head of each diversity organization partners with the respective senior leadership diversity best practices, identify natural synergies between the two companies, and troubleshoot common challenges. During the last two years, both companies have committed to an inclusive diversity strategy and many corporatewide diversity initiatives, including (1) customized diversity business case for their respective business; (2) diversity training for over 10,000 employees; (3) mentoring program; and (4) multicultural recruiting. Each company tailored these four initiatives to address their business needs and the unique culture of their organization. An example of the company’s approach to diversity can be seen through a closer look at its refining and tailoring business. Marathon Ashland Petroleum’s successful implementation of several diversity initiatives demonstrates how focused leadership commitment, a diversity strategy that complements business objectives, and a practical plan creates significant results in a short period of time. In fact, diversity is one of MAP’s five core values, which are diversity, ethics, environmental stewardship, safety, and premier employer, for which its senior leadership and employees are held accountable. Minority Recruiting Faye Gerard’s (MAP’s diversity manager) positive professional experiences as and African-American female chemical engineer, intensifies her commitment to achieve MAP’s goal to increase representation of minorities and women in technical positions. The declining number of minorities, particularly minority women, and the increased competition for technical talent makes this a daunting task. MAP’s senior executives, partnering with Faye, have created a six component recruiting strategy that focuses on (1) corporatewide, cross-functional recruiting; (2) relationship-based recruiting with firstand second-tired schools; (3) internship; (4) scholarship; (5) informal mentoring; and (6) organizational affiliations. Diversity Awareness Training The senior leadership felt it was important for each employee to understand diversity’s relationship to MAP’s business strategies, corporate success and expectations for their behavior. Therefore, MAP required its 6,000 employees to attend diversity training. Managers and supervisors attended an eight-hour in-class session; nonmanagement spent

four hours at in-class session training, and the hourly work-force had computer-based diversity training. In less than 1.5 years, 95% of MAP’s workforce has been trained. Mentoring Over the last year, MAP has implemented Knowledge Enhancement Exchange Program, (KEEP) a mentoring program that targets all employees. Its objectives is to increase retention and contributions to the business, expand individual knowledge bases, and further instill MAP’s five core values by driving supportive work relationships. There are two target populations: new hires are paired with senior, more experienced employees. Informal and formal feedbacks (employee surveys) have indicated that KEEP has been extremely effective. Phase II Diversity at MAP MAP is now in the design and implementation of its Phase II diversity initiative. This Phase focuses on (1) increasing diversity skills and tools for managers and supervisors; (2) work-life balance; (3) accelerated join-up for new hires; and (4) on-going senior executive leadership for diversity. Case Summary We have embraced diversity to foster the creativity of thought and innovative solutions that result in enhanced business opportunity. Clarence P. Cazalot Jr. President and Chief Executive Officer At Marathon, diversity is a core value in their business strategy. they are committed to maintaining an inclusive environment in which all employees are respected and valued for the full range of talents, experiences, thoughts and opinions they bring to the workplace. Leveraging the diversity of their workforce and their Supplier Diversity Program enables them to build relationships and business partnerships that ensure their goal for sustainable value growth. • Marathon’s minority recruiting program is also very efficient in developing diversity. • Marathon diversity councils help drive Marathon’s global diversity initiatives. These are advisory bodies comprised of a representative cross-section of the Corporation's employees. • Marathon’s diversity educations programs help raise the level of awareness of Marathon’s employees. • Marathon’s global mentoring programs help employees grow in their current jobs and develop future career opportunities.

Questions for Discussion 1. Which layers of diversity is Marathon Oil targeting in its recruiting and mentoring initiatives? Functional Level/ Classification

Geographic Location Marital Status Mgmt. Status

Parental Status Race

Appearance

Union Affiliation

Ethnicity

Income Work Content/ Field

Age

Person ality

Personal Habits

Recreational Habits

Sexual Orientation

Physical Ability Work Experience

Division/ Dept./ Unit/ Group

Religion

Educational Background Work Location

Seniority

There are four layers of diversity, (1) personality, dependant upon coming three dimensions or layers of diversity, (2) Internal Dimension, consist of age, race ethnicity, Physical Ability, and sexual orientation, (3) External Dimension, consists of Income, Religion, Work Experience, appearance, parental status, marital status etc, (4) Organizational dimension, the last one consist of Management status, union affiliation, work location, seniority, field, functional level or classification. MAP is targeting the internal and external dimensions/layers of diversity. For example they are recruiting irrespective of race, age, ethnicity, Physical Ability, and sexual orientation. Means recruiting women on technical positions and giving minority preferences and making them trained. If you come at the mentoring program of the MAP they are pairing the newly hired employees with most experienced and senior employees of the organization. 2. Compare and contrast the extent to which Marathon is using principles from affirmative action, valuing diversity, and managing diversity. Explain your rationale. Affirmative action is an artificial intervention aimed at giving management a chance to correct an imbalance, an injustice, a mistake, or outright discrimination. MAP has

used affirmative action somewhere in minority recruiting program and giving chance to the woman to take part in technical position in an organization like MAP. MAP did not do things like include/exclude instead they gave value to diversity. Valuing diversity emphasizes the awareness, recognition, understanding, and appreciation of human differences. As MAP has giving chances to the minority and woman by employing them as MAP and gave them value and absorb them in the organization. The diversity awareness program of MAP is step to give value to diversity. Managing diversity entails enabling people to perform up to their maximum potential. MAP has managed diversity through programs like mentoring which entails newly hired employees with most senior employees in the organization. 3. Which of R Roosevelt Thomas, Jr’s eight generic diversity options is Marathon Oil using to manage diversity? Explain. Thomas identified eight basic responses for handling any diversity issue. Option 1: Include/Exclude Option 2: Deny Option 3: Assimilate Option 4: Suppress Option 5: Isolate Option 6: Tolerate Option 7: Build Relationships Option 8: Foster Mutual Adaptation Exclusion, denial, assimilation, suppression, isolation, and toleration are among the least preferred options. MAP is not following these options. While options like inclusion, building relationship, and mutual adaptation are preferred options for MAP to follow. 4. Using Table for Common Diversity Practices as a point of reference, identify the various accountability, development, and recruitment practices used by Marathon Oil. These are the accountability, development, and recruitment practices used by MAP • Accountability practices • Inclusion of diversity in performance evaluation goals, ratings. • Inclusion of diversity in promotion decisions, criteria. • Inclusion of diversity in management succession planning. • Policies against racism, sexism. • Development practices • Diversity training programs • Informal networking activities • Formal mentoring program. • Internal training(such as personal sagety or language)

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Recruitment practices • Corporate image as liberal, progressive, or benevolent. • Partnerships with educational institutions.

• Recruitment incentives such as cash supplements. • Internships. • Targeted recruitment of managers. Table for common diversity practices