CHAPTER FOUR Managing Diversity

Chapter Objectives Review Key Terms Define Affirmative Action Define Management of Diversity Discuss the reason for and challenges involved with Managing Employee Diversity Draw a Profile of Employee Groups that are less likely to be part of the corporate mainstream and examine some of the common stereotypes associated with each Review HR systems that will aid organizations with the Management of Diversity Review Key Terms Affirmative Action Cultural Relativity Concept of Management Cultural Determinism Diversity Diversity Audit Diversity Training Programs Glass Ceiling Management of Diversity Old Boys’ Network Universal Concept of Management

Affirmative Action A phrase describing a range of policies to seek out, encourage and sometimes give preferential treatment to individuals in protected groups.

Affirmative Action Considerations - Advocates Makes fuller use of talent and creates political stability Justified to compensate for past disparities (wage gaps alone since 1929 equals close to $500 billion) It is right to have a system of preferential treatment until equality prevails

Affirmative Action Considerations - Critics It is ineffective and creates significant problems of fairness Economic rewards should be distributed based on merit, not on race, ethnicity, or sex Destroys a more fundamental right – the right of all individuals to be treated equal under the law

Managing Employee Diversity Diversity: Human characteristics that make people different from one another. Management of Diversity: The set of activities involved in integrating nontraditional employees (women and minorities) into the workforce and using their diversity to the firm’s competitive advantage.

Managing Employee Diversity A key factor in corporate performance is how well nontraditional employees such as women and minorities can be fully integrated and work effectively with both one another and their white male counterparts – issues to consider include: Demographic Trends Diversity as an Asset Marketing Concerns

Managing Employee Diversity Diversity as an asset Research (Rosabeth Kanter) has shown that diversity in the workforce can bring about: Greater Creativity Better Problem solving Greater system flexibility Better Information

Key Challenges in Managing Employee Diversity Valuing Employee Diversity Individual vs. Group Fairness Universal Concept of Management vs. Cultural Relativity Concept of Management Resistance to Change Group Cohesiveness & Interpersonal Conflict Segmented Communications Networks Resentment Backlash Retention Glass Ceiling: intangible barrier in an organization that prevents female and minority employees from rising to positions above a certain level Competition for Opportunities

Diversity in Organizations Groups identified to be most likely left out of corporate mainstream: African Americans Asian Americans People with Disabilities Foreign Born Homosexuals Latinos Older Workers Religious Minorities Women

Diversity in Organizations Religious Minorities Current focus of many HR discussions including: Permissible attire at work Allowable religious holidays Harassment issues based on one’s faith Display of religious symbols on company property

Improving the Management of Diversity Top Management Commitment to Valuing Diversity Diversity Training Programs programs that train and educate employees on specific cultural and sex differences and how to respond to these in the workplace Support Groups groups established to provided nurturing climate for those that might feel isolated or alienated Accommodation of Family Needs Senior Mentoring Programs support program in which senior managers identify promising women and minorities and play an important role in nurturing their careers

Improving the Management of Diversity Apprenticeships programs in which promising prospective employees are groomed before they are actually hired Communication Standards Diversity Audits: review of the effectiveness of an organization’s diversity management program (potential drawbacks) Management Responsibility & Accountably

Some Warnings Avoid Appearance of “White Male Bashing” Avoid the Promotion of Stereotypes Cultural determinism idea that one can successfully infer an individual’s motivations, interests, values and behavioral traits based on that individual’s memberships