William “Billy” Durant and Henry Ford are celebrated founders of the two greatest automobile companies in America’s history: General Motors (GM) and Ford Motor Company. Ford was the famous inventor who introduced the Model T, the world’s first affordable automobile. Durant was an entrepreneur whose Flint, Michigan, carriage business manufactured a variety of luxury models and farm wagons for diverse customers.

Although both were pioneers of the auto industry, their approaches could not have been more different. Whereas Ford remained focused on one brand and one vehicle, Durant dreamed of a whole family of car companies, each producing different models for different kinds of consumers and needs. Not satisfied owning only GM Buick in 1908, Durant proceeded to acquire
Oldsmobile, Cadillac, and Oakland Motor Car Company. (Pontiac), among others, bringing them under one roof alongside Chevrolet, which he co-founded on the side.

The story of William Durant is a powerful metaphor for the spirit of diversity that infuses the work and culture of GM today. In the global marketplace, managers interact with people of different cultures, languages, beliefs, and values. Recognizing diversity, and the unique way people with different backgrounds interact and communicate, is key to success in the international arena.

As GM celebrates 100 years of auto manufacturing greatness, its workforce is increasingly made up of people of all ethnicities and walks of life. The company is home to a variety of employee-resource groups, including the African Ancestry Network, the Hispanic Initiative Team, the Native American Cultural Network, the People with Disabilities Group, and the
Veteran’s Affinity Group. Employees who join these special support groups discover a wealth of resources for career and personal development.

By promoting a workforce that is as diverse as its customer base, GM brings a broad range of ideas and voices to bear on tough business challenges. “By valuing and respecting differences and similarities in the workplace, we will be in a better position to win in the marketplace,” said Rod Gillum, vice president of corporate responsibility and diversity at GM. “It is our goal to recruit and retain diverse talent that reflects our global customers and to create an environment where everyone can fully contribute in creating great GM products and services.”

The top automaker has made great strides toward Gillum’s goal. Diversity Inc magazine ranks GM among its Top 50 Companies for Diversity. The magazine writes that GM shows “unbiased retention” in hiring people of all races, ethnicities, and gender—and at all levels of the organization. To appear in the magazine’s rankings, companies must demonstrate a commitment to diversity in four areas: CEO commitment, human capital, organizational communications, and supplier diversity.

Cultivating a broad multinational workforce means eliminating glass ceilings that discourage groups from participating fully in the company. Edward T. Welburn is GM’s vice president of global design, heading up a multinational division with 11 design centers around the world. Appointed in 2005, Welburn is the sixth person to hold this position, and the fi rst African-American. Under his leadership, GM unified its design efforts worldwide by establishing coordinated collaboration between 1,900 designers in eight countries. The results speak for themselves. Whether it’s the sleek luxury of the Cadillac CTS or the retrospective cool of the 2010 Chevy Camaro, GM’s most exciting new concepts are developing rapidly under Welburn’s watchful eye. Hired by GM in 1972, Welburn appears to have been born for the job. “All I ever wanted to do was design cars,” the design chief says.

Yet for any diversity initiative to thrive in an organization, it must have support all the way to the top. CEO Rick Wagoner understands the challenges of the new millennium as well as diversity’s role in meeting those challenges. “At General Motors, we know that to succeed in today’s global marketplace, we need a diverse workforce, one that brings together a wide range of talents, ideas, experiences, and perspectives.”

Questions

1. What do you think are the most compelling advantages of diversity presented here?

2. What challenges do managers face in creating a diverse workplace, and how might they respond to these challenges?

3. Do you think that GM’s encouragement of employee networks always leads to a culture of diversity and cooperation? Explain.