Managing diversity at

Cityside Financial
Services
Submitted by: Group Y2
Gyanasagar A 16S514
Himanshu Jha 16S517
Kavleen kaur 16S522
Priyanka Gupta 16S540
Vinay Sharma 16S554

Case Background :

It was founded in 1930

A successful Midsized bank
Serving White , Upper middle class
Sold to racially diverse group of investers
In 1999, Two Units is operated in sales Division

Retail Operations

External Deposits

Local Community personal

Portfolio of money market

accounts
Individual retirement
accounts (IRAs)
Certificate of Deposits (CDs)

Saving account
Small business loans

Home and real estate

mortgages
Hired mostly black
employees (Many from local
community itself)

Hired mostly White , Middle

aged college graduates

By 2000s, 52% of total
deposit was accounted for
external deposits

Individuals Involved :
Ron Wilkins : A young black investment banker who purchased
a part of the Cityside financial services.
Bernard Thomas : Black , The head of Retail Operations
Sue McMillen : White , The head of External Deposits

Employee Diversification :
As the neighborhood population got diversified , Wilkins and his
partners diversified their staffs too hoping that it will work in their
favor and It initially did :

 Females : Half of the workforce

African Americans : 53% of Middle managers
42% of Senior managers
25% of Executives
90% of Supports staff

The Schism:
Long Term customers who had moved out of the neighborhood
but still was customer for the bank was getting limited services
because those other services which was expected by them was
catered only to customers of External Deposits.
This was the result of segmentation mistake of the bank.
These recent schism between the two group not only threatened
the quality of service , but also compromise the banks efficiency

What went wrong ??????

A sense of rivalry and disagreement was created between Retail

operation and External deposits because of overlapping of the

services and fault in Re-categorization of customers.
Diversification was not done correctly because even after
diversification retail operation had maximum black employees
and vice versa.
Stereotyping was there in both unit as External deposits assumed
only white people as workaholic and black people as people
wanting 9-5 jobs.
Cooperation, coordination & collaboration was not there between
the two units which many times created conflicts.
There was a sense of discrimination among the African
American and black people.

Recommendation :
Re Diversification should be done with making sure that both
the unit get equal number of employees from both of the races
(Specially in the Decision making position)

 Even after Re Diversification, Stereotyping will be there which

will result in dissatisfaction of self-esteem needs of both races.
So, Diversity management should be done in a proper manner