Question: For the past 20 years, Metropolitan Hospital celebrated the fact that 50 percent of its new hires in management positions had been women. The hospital assumed that with such a practice, women would eventually represent 50 percent of their top management executives (vice presidential level and above). But something unexpected happened. Five years ago, the hospital became concerned that its diversity program was not producing results. Instead of seeing an increase in the number of women in executive positions, the organization was observing a decline. Talented female managers were leaving, draining the pool of capable people. To address this problem, the hospital founded the Task Force on Retention and Advancement of Women in Executive Positions. This task force aimed to pinpoint the reasons that female executives were leaving. The task force conducted a massive informationgathering initiative, interviewing women in all position levels and women who left. The team uncovered three main areas of concern through the interviews:

(1) limited opportunity for advancement,

(2) lack of mentoring and networking, and

(3) existing work and family issues.

In response to these findings, Metropolitan Hospital retooled the workplace, renewing its commitment to flexible work arrangements, reduced workloads, and flex time. The hospital also developed plans for company-sponsored networking and formal career planning for its women employees. Since these initiatives were implemented, the results have been positive. Retention of women employees at all levels has risen, and turnover rates of those in management positions (just below the executive level) have been lower for women than for men. In addition, the hospital promoted the highest percentage (41 percent) of women as new executives in its history. Metropolitan Hospital is now basking in its new reputation as a woman-friendly employer. This gives the organization external recognition in the marketplace, which helps with recruiting efforts, and enhances their reputation in the community.

Case Questions

1. How and why did the problems at Metropolitan Hospital occur in the first place?

2. How did the changes address the underlying problems?

3. What managerial actions are required to successfully implement a diversity program?