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					Managing the Diverse

Chapter 11
Bateman and Snell
Learning Objectives
   After studying Chapter 11, you will know:
     how changes in the U.S. workforce make diversity
     a critical organizational and managerial issue
     the distinction between affirmative action and
     managing diversity
     how companies can gain a competitive edge by
     effectively managing diversity
     what challenges a company is likely to encounter
     with a diverse workforce
     how an organization can take steps to cultivate
Diversity: A Brief History
  Managing diversity
    understanding and appreciating employee
    differences to build a more effective and
    profitable organization
    recognizing the characteristics common to
    specific groups of employees while dealing with
    such employees as individuals and supporting,
    nurturing, and utilizing their differences to the
    organization’s advantage
Diversity Today

    broad term used to refer to all kinds of
     • race, age, sex, religion, attitudes, physical abilities,
       life interests, expectations, flexibility,
       aggressiveness, extroversion
    members of different groups share common
    values, attitudes, and perceptions
     • there is still much diversity within each group
Components Of A Diversified
Workforce                              Gender

 Racial and ethnic                       Age
 minorities in the
  United States                        Other
                                 Religious affiliation
                     Workforce   Veteran status
    Immigrants                   Sexual orientation
                     Diversity   Expectations and values
  Physically and                 Skill level
 mentally disabled               Educational level
                                 Economic class
                                 Function and/or position
                                    within the company
How Effective Is Your Diversity Program?
       2%                              Very
                         Undecided   Effective
      Somewhat             11%         8%
      ineffective   8%                             22%

Diversity Today (cont.)
  Workers of the future
    until recently, white, American born males dominated
    the U.S. workforce
     • now, they only account for 15 percent of the net growth
    Gender issues - growing number of women working
    outside the home
     • balancing work life with family responsibilities and parenting
       presents an enormous challenge
     • average full-time working female earns about 77% of the
       average full-time working male
         – result of both the level and type of work performed by women
         – glass ceiling - invisible barrier hindering women and minorities
           from moving beyond a certain level in the corporate hierarchy
Diversity Today (cont.)
   Workers of the future (cont.)
     Gender issues (cont.)
      • sexual harassment - conduct of a sexual nature that
        has negative consequences for employment
          – EEOC - investigates and prosecutes cases of sexual
          – quid pro quo harassment - submission to or rejection of
            sexual conduct is used as a basis for employment decisions
          – hostile environment - unwelcome sexual conduct has
            the purpose or effect of reasonably interfering with job
            performance or creating an intimidating, hostile, or
            offensive working environment
      • the changing status of women has given men the
        opportunity to redefine their roles, expectations, and
Diversity Today (cont.)
  Workers of the future (cont.)
    Minorities and immigrants - growing percentage of
    the workforce
     • estimated that 14 percent of the work force is foreign born
     • African Americans are about 12 percent, Asian Americans are
       about 5 percent, Hispanic Americans about 12 percent
     • Asians and Hispanics are growing the fasted
    Mentally and physically disabled - largest
    unemployed minority population is the U.S.
     • disability - a physical or mental impairment that substantially
       limits one or more major life activities
     • disabled lack access to educational and workplace
     • attitudes of employers an important barrier to employment
Diversity Today (cont.)
   Age of the workforce
      average age is increasing
      • many older workers are opting for early
      • fewer new workers will enter the labor force
        than will be lost through retirement
     retirement-age workers can be encouraged
     to remain or reenter the workforce on a
     flexible or part-time basis
Diversity Today (cont.)
   Future jobs and workforce qualifications
     the U.S. is becoming a predominantly service-
     oriented economy
     people without high school diplomas are at a
     distinct disadvantage
     gap is growing between the knowledge and skills
     jobs require and those many employees and
     applicants possess
      • literacy is often the underlying problem
      • employers are combating this basic-skills gap
          – offer in-house basic-skills training program
Managing Diversity Versus Affirmative Action
   Affirmative action (AA)
      instituted to curb discrimination and correct the past
      exclusion of women and minorities from U.S.
      nonetheless, employment discrimination still persists
       • AA has not adequately improved the upward mobility of
         women and minorities
      reverse discrimination exists when qualified white
      males are passed over for employment opportunities
   Managing diversity
      means moving beyond legislated mandates to embrace
      a proactive business philosophy that values differences
      eliminates barriers that hinder attainment of full
Managing Diversity Versus Affirmative
Action (cont.)
    Competitive advantage through diversity
      original impetus to diversity workforces was social
      responsibility and legal necessity
       • today, many organizations are also approaching diversity
         from a more practical, business-oriented perspective
      Ability to attract and retain motivated
       • companies with reputation for diversity have competitive
         advantage in the labor market
       • companies will be sought out by most qualified
       • employees who believe that their differences are valued
         may become more loyal, productive, and committed
Managing Diversity Versus Affirmative
Action (cont.)
 Competitive advantage through diversity (cont.)
   Better perspective of a differentiated market
    • as the composition of the American workforce changes, so
      does the customer base of these companies
        – diverse customers may prefer to patronize such organizations
    • a multicultural workforce can provide a company with greater
      knowledge of the preferences and consuming habits of this
      diversified marketplace
   Ability to leverage creativity and innovation in
   problem solving
    • people from different backgrounds hold different perspectives
    • diverse work groups are freer to deviate from traditional
Managing Diversity Versus Affirmative
Action (cont.)
    Competitive advantage through diversity
      Enhancement of organizational flexibility
       • managing diversity requires a corporate culture that
         tolerates different styles and approaches
    Challenges of a diverse workforce
      Lower cohesiveness - lack of similarity in
      culture causes diverse groups to be less cohesive
      Communication problems - most common
      negative effect
       • diversity increases errors and misunderstandings
Managing Diversity Versus Affirmative
Action (cont.)
    Challenges of a diverse workforce (cont.)
      Mistrust and tension - mistrust and
      misunderstanding of those who are different
      because of a lack of contact and low familiarity
      Stereotyping - inappropriately stereotype their
      “different” colleagues rather than accurately
      perceiving and evaluating those individuals’
      contributions, capabilities, aspirations, and
       • stereotypes affect how people are treated
Multicultural Organizations
   Monolithic organizations
     an organization that has a low degree of integration
      • employs few women, minorities, or other groups that differ
        from the majority
          – low minority employees must adopt the norms of the majority
      • has a highly homogeneous employee population
   Pluralistic organizations
     have a more diverse employee population
     use an affirmative action approach to managing
     some acceptance of minorities into the informal
     much less discrimination and less prejudice
Multicultural Organizations (cont.)
    Multicultural organization
      values cultural diversity and seeks to utilize and
      encourage it
      fully integrate gender, racial, and minority group
      members both formally and informally
      absence of prejudice and discrimination
      low levels of intergroup conflict
      synergistic environment
       • all members contribute to their maximum potential and
         the advantages of diversity can be fully realized
How Organizations Can Cultivate A
Diverse Workforce
   Top management leadership and commitment
     top management support is critical
     incorporate organization’s attitudes toward diversity
     into the corporate mission statement, strategic plans,
     and objectives
     establish corporate offices or committees to coordinate
     the companywide diversity effort that provides
     feedback to top management
     minority advisory groups or task forces to monitor
     organizational policies, practices, and attitudes
      • assess program impact on diverse groups
      • provide feedback and suggestions to top management
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Organizational assessment
     establish an ongoing assessment of the
     organization’s workforce, culture, policies, and
      • identify problem areas
      • make recommendations where changes are needed
     corporate values and norms should be identified
     and critically evaluated regarding their necessity
     and their impact on the diverse workforce
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Attracting employees
     Recruitment - a company’s image can be a
     strong recruiting tool
      • a reputation for hiring and promoting all types of people
        can be a competitive advantage
      • many minorities and economically disadvantaged people
        are physically isolated from job opportunities
          – companies can bring information about job opportunities
            to the source of labor
          – companies can transport labor to the jobs
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Attracting employees (cont.)
     Accommodating work and family needs
      • corporate work and family policies are now one of the
        most important recruiting tools
      • providing child care leads to:
          – decreased turnover and absenteeism
          – improved morale
      • concerns for dual-career couples expressed by:
          – limiting relocation requirements
          – provide job search assistance to relocated spouses
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Attracting employees (cont.)
     Alternative work arrangements
      • offer flexible work schedules and arrangements
         – compressed workweeks
         – job sharing - two part-time workers share one full-
           time job
         – teleworking - working from home
         – telecommuting - working from home via computer
           hookup to the main worksite
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Diversity training
     attempt to identify and reduce hidden biases and
     develop skills needed to effectively manage a
     diversified workforce
     Awareness building - to increase awareness of
     the meaning and importance of valuing diversity
      • sensitize employees to assumptions they make about
      • become familiar with stereotypes and cultural differences
      • become familiar with organizational barriers that inhibit
        the full contributions of all employees
      • teach the unwritten “rules” or cultural values to those
        who need to know them
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Diversity training (cont.)
     Skill building - designed to allow all employees to
     develop the skills they need to deal effectively with one
     another and customers in a diverse environment
      • most of the skills taught are interpersonal
      • develop personal action plans before they leave the program
      • experiential exercises and videotapes often are used
   Retaining employees
     Support groups - form minority networks to promote
     information exchange and social support
      • provide emotional and career support
      • help diverse employees understand work norms and cultures
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Retaining employees (cont.)
     Mentoring - higher-level managers help
     ensure that high-potential people are
     introduced to top management and socialized
     into the norms and values of the organization
      • help diverse employees enter the informal network
     Career development and promotion -
     establish teams to evaluate the career progress
     of diverse employees
      • devise ways to move them up through the ranks
How Organizations Can Cultivate A
Diverse Workforce (cont.)
   Retaining employees (cont.)
     Systems accommodation - recognize:
      •   cultural and religious holidays
      •   differing modes of dress
      •   dietary restrictions
      •   needs of individuals with disabilities
     Accountability - managers held accountable for
     workforce development
      • performance appraisal and reward systems reinforce the
        importance of effective diversity management

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