WEEK 6: The manager as a person – II Managing dIversIty BUSN 107 – 31.10.2012

Values Values => The conscious, affective desires or wants of people that guide their behavior Guiding principles in an individual’s life, shaping their view of the world Linked to attitudes in that a value serves as a way of organizing attitudes.

Values

Values Value System => a hierarchy based on a ranking of an individual’s values in terms of their intensity I. Terminal Values: A lifelong goal or objective that an individual seeks to achieve; desirable end-states of existence II. Instrumental Values: A mode of conduct that an individual seeks to follow; means of achieving one’s terminal goals

Terminal and Instrumental Values in the Rokeach Value Survey

Attitudes Attitudes => A collection of feelings and mental state of readiness Evaluative statements or judgements concerning objects, people or events. Implications for managers: Define predispositions toward the world Provide emotional basis of interpersonal relations and identifications with others Some are persistent and some are subject to change Each of us has attitudes on numerous topics – friendship, love, sports, dieting, career goals, laws... Attitudes have many sources: family, friends, society, school/teachers, previous experiences, culture Some attitudes are persistent and enduring; yet some are subject to change.

Attitudes isn’t everything, but it’s close Attitudes isn’t everything, but it’s close. New York Times headline, August 6, 2006

Why Should Managers Be Interested in Employees’ Attitudes? Attitudes give warnings of potential problems and they influence behavior Employees with positive attitudes towards work perform better on the job Managers often face the task of changing employees’ attitudes because existing attitudes hinder organizational –job performance. For this to happen: employees should trust the manager and convinced in his message.

The Components of Attitudes Cognitive = evaluation My supervisor gave a promotion to a coworker who deserved it less than me. My supervisor is unfair Negative attitude towards supervisor Affective = feeling I dislike my supervisor! Behavioral = action I am looking for another work; I’ve complained about my supervisor who would listen

Important Job Attitudes: Job satisfaction Organizational commitment Perceived organizational support Job involvement Employee engagement

Important Job Attitudes Job Satisfaction A collection of feelings and beliefs that managers and employees have about their jobs It results from the perception of the job based on following factors: Pay, job, promotion opportunities, work environment and conditions, organizational policies and procedures, supervisors, co-workers Employees high on job satisfaction like their jobs, feel that they are being fairly treated, and believe that their jobs have many desirable features “Happy workers are productive workers”

How to create satisfied employees? Management is able to control each of these: Mentally challenging work Opportunities to use their skills and abilities; varieties of tasks, freedom and feedback Equitable rewards Pay systems employees perceive as just, unambigious and in line with their expectations

How to create satisfied employees? Management is able to control each of these: Supportive working conditions Safe and comfortable working environment Supportive coworkers Social interaction, friendly and supportive managers and coworkes

Job Satisfaction In Close US workers job satisfaction relatively high (Gallup Poll, 2008): http://www.gallup.com/poll/109738/us-workers-job- satisfaction-relatively-high.aspx US job satisfaction struggles to recover to 2008 levels (Gallup Poll, 2011): http://www.gallup.com/poll/147833/job-satisfaction- struggles-recover-2008-levels.aspx

Important Job Attitudes Organizational Commitment The degree to which a manager/employee identifies with the organization and its goals and wishes to maintain membership there –loyalty to the org. Committed managers are loyal to their firms and less likely to quit Leads to a strong organizational culture Helps managers perform their figurehead and spokesperson roles

Attitudes - Performance Relationship: Job Satisfaction Job Performance Org. Commitment

Organizational Culture Shared set of beliefs, expectations, values, norms, and work routines that influence how members of an organization relate to one another and work together to achieve organizational goals The set of important assumptions about the organization and its goals and practices that members of the company share

Organizational Culture In strong organizational cultures, the majority of people within the organization agree on organizational goals In weak organizational cultures, the majority of people within the organization disagree on organizational goals

Factors that Maintain and Transmit Organizational Culture:

Diversity of the Workforce and the Environment Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities

Diversity of the Workforce and the Environment Reasons why diversity is an important concern: The ethical imperative for equal opportunity and fair and just treatment Effectively managing diversity can improve organizational effectiveness The continuing unfair treatment toward diverse individuals as a result of biases, stereotypes and overt discrimination

Sources of Diversity in the Workplace:

Workforce Diversity: Gender Women in the Work Place in US: U.S. workforce is 46.5 % percent female Women’s weekly median earnings are $572 compared to $714 for men. Women hold only 16% of corporate officer positions

Workforce Diversity: Gender World Economic Forum: The Global Gender Gap Report 2012 http://www.weforum.org/issues/global-gender- gap

Workforce Diversity: Gender Turkey in Gender Gap Report:

Workforce Diversity: Gender Turkey in Gender Gap Report:

Solving Diversity-Related Problems Think about the last time: (1) you were treated unfairly because you differed from a decision maker on a particular dimension of diversity, or (2) observed someone else being treated like this Why do you think the decison maker acted unfairly in this situation? In what ways if any were biases, stereotypes or overt discrimination involved in the situation? Was the decision maker aware that he or she was acting unfairly? What could you or the person have done to improve matters and rectify the injustice on the spot? If you had authority over the decision maker, what steps would you take to ensure that the decision maker no longer treated diverse individuals fairly?

Managing Diversity Effectively Critical Managerial Roles: Conveying it as a valued goal and objective Enabling diverse employees to coordinate and cooperate in the organization Using authority and status to influence and persuade others Commitment and reward for the support of diversity Showing confidence in the abilities and talents of diverse employees

Managing Diversity Effectively Two Moral Principles for Managing Diversity: Distributive Justice => Fair distribution of pay, promotions and other organizational resources based on meaningful contributions Procedural Justice => Use of fair procedures to determine how to distribute outcomes to organizational members

Perceptions as a Determinant of Unfair Treatment The process through which people select, organize and interpret what they see, hear, touch, smell and taste to give meaning and order to the world around them Inaccurate perception leads managers to bad decisions and inapproporiate actions; unfair treatment towards diverse employees

Perceptions as a Determinant of Unfair Treatment Managers’ perceptions likely to differ because of their differences in: Personality, values, attitudes and moods Past experiences: acquired knowledge about people, events and situations Pre-existing schemas => abstract knowledge structures Gender schemas Race and ethnicity schemas

Perceptions as a Determinant of Unfair Treatment Stereotype: Simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people Biases: Systematic tendency to use information about others in ways that result in inaccurate perceptions Similar-to-me effect, social status effect, salience effect Overt Discrimination: Knowingly and willingly denying individuals access to opportunities and outcomes in an organization

Steps in Managing Diversity Effectively Secure top management commitment Increase the accuracy of perceptions Increase diversity awareness Encourage flexibility Pay close attention to how employees evaluated Consider the numbers in terms of diversity Empower employees to challenge discriminatory behaviors Reward employees for effectively managing diversity Provide training and mentoring on diversity

Next Week Read from your course book: Chapter 4: Ethics and Social Responsibility