Chapter 7 The Impact of Diversity: Trends and Issues

Society is Either: Homogenous: Their members share a relatively uniform or standard set of values and backgrounds. Homogenous: Their members share a relatively uniform or standard set of values and backgrounds. Heterogeneous: A society composed of many dissimilar people with a varied mix of backgrounds, values, needs, and interests. Heterogeneous: A society composed of many dissimilar people with a varied mix of backgrounds, values, needs, and interests. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Primary and Secondary Dimensions of Diversity McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

CAUTION: Stereotyping Must Be Avoided!!!! Stereotyping: Placing people in broad social groups, then generalizing about and labeling them because they are part of a given group. Stereotyping: Placing people in broad social groups, then generalizing about and labeling them because they are part of a given group. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity Challenges and Opportunities Workforce Diversity: The movement of people from differing demographic and ethnic backgrounds and value organizations into the organizational mix. Key Diversity Issues: Growing presence of women in the workforce Balancing work and family Growth in racial and ethnic minorities Age and generational influences McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Growing Presence of Women in the Workforce In 1955, 35% of U.S. women worked, today 60% work. In 1972, U.S. women help 19% of management positions, today they hold 50%. More CEO’s chairs are being filled by women. In Fortune 500 companies, women hold 12.4% of board seats. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Women in Top Management The Glass Ceiling: Systematic barriers that prevent women from advancing in the organization. The Glass Border: The tendency for women not to receive international assignments important for their advancement. The Glass Ceiling: Systematic barriers that prevent women from advancing in the organization. The Glass Border: The tendency for women not to receive international assignments important for their advancement. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Balancing Work and Family Work/Family Conflict: The sense that work and family demands interfere with each other. Dual-Career Household: A family in which both partners are actively pursuing full-time careers. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ways Companies Meet Work and Family Demands Telecommuting: Situations where workers spend part of each week working at home and communicating with the office via computer. Flextime: Work arrangements that allows employees to adjust work hours, often to meet other responsibilities. Job Sharing: Work arrangements where two employees share one job and split all the duties, responsibilities, and compensation of that job. Telecommuting: Situations where workers spend part of each week working at home and communicating with the office via computer. Flextime: Work arrangements that allows employees to adjust work hours, often to meet other responsibilities. Job Sharing: Work arrangements where two employees share one job and split all the duties, responsibilities, and compensation of that job. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Growth of Racial and Ethnic Minorities McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Population Workforce White (non-Hispanic) African American Hispanic Asian

Racial and Ethnic Issues Management Faces An Ethnic and Racial Glass Ceiling. Feelings of Being Unfairly Treated on the Job. Caucus Groups: Groups of employees who get together to address key concerning relating to members of their particular group. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Age and Generational Influences Baby Boomers: The generation of Americans born between 1946 and Issues with Baby Boomers: The Aging or “Graying” of the Workforce. Employee Retraining: Regularly providing the education and training workers need to expand their base of skills so the can meet the needs of business. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Age and Generational Influences Generation X: People born between 1965 and Issues with Gen Xers: Will not sacrifice family for career. Will work hard and be productive leaders. Place high value on family, friendships, and social causes. Loyal to professions not employers. Value health and fitness. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Age and Generational Influences Generation Y: Today’s teenagers born between 1981 and Issues with Generation Y: The largest group since Baby Boomers – 17 million. Racially diverse – 1/3 not Caucasian. Most have working mothers. Have strong buying power. Highly computer and technology savvy. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

FACT: The Times Are Changing The U.S. divorce rate has been declining over the past 20 years. 15% of Americans have tattoos, body piercings, or both. More than 4% of minority Americans own a business. Over 50% of health club and fitness center members are over % of U.S. companies have on-site child care. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

FACT: The Times Are Changing 24% of companies let employees bring children to work in an emergency. In recent research, 44% of African Americans felt they were treated unfairly on the job.” Most Gen Xers are married and 2/3 of Gen X women have children. 32% of all households are non-family households. From 1990 to 2000, non-family households grew 2x as fast as traditional household families. 24% of companies let employees bring children to work in an emergency. In recent research, 44% of African Americans felt they were treated unfairly on the job.” Most Gen Xers are married and 2/3 of Gen X women have children. 32% of all households are non-family households. From 1990 to 2000, non-family households grew 2x as fast as traditional household families. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Accommodating Individuals with Disabilities. FACT: Over 20%, or 54 million Americans have some level of disability. The Americans with Disabilities Act requires businesses to be more responsive to the unique needs of disabled workers. FACT: Over 20%, or 54 million Americans have some level of disability. The Americans with Disabilities Act requires businesses to be more responsive to the unique needs of disabled workers. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Teams and Diversity Typically, teams work well to address what needs to be done. In diverse teams, conflict and clashes can greatly increase. Successful companies train teams to appreciate, respect, and work through differences to reach better decisions. Strong organizations know they need diversity in their Boards of Directors. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Global Business and Diversity Keys for Successful Global Operations: Cultural sensitivity – understanding what a culture appreciates and respects Cross-cultural literacy Respect for cultural values and norms Sensitivity to the keys that define a culture: Political philosophy Economic philosophy Educational systems Language The social structure Religious and ethical systems Keys for Successful Global Operations: Cultural sensitivity – understanding what a culture appreciates and respects Cross-cultural literacy Respect for cultural values and norms Sensitivity to the keys that define a culture: Political philosophy Economic philosophy Educational systems Language The social structure Religious and ethical systems McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Issues in Diversity Management Diversity Management: Putting together a well- thought-out strategy for attracting, motivating, retaining, and fully utilizing the talents of competent people regardless of their race, gender, ethnicity, religion, physical ability, or sexual orientation. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Government Actions Affecting Diversity Management The Equal Employment Opportunity (EEO) Act “A business cannot deny a person a job because of race, gender, ethnicity, age, or sexual preference.” Affirmative Action Directs businesses to take positive steps to hire and promote members of the classes noted in the EEO Act. Assimilation: The assumption that women and minorities should blend in and learn how to work within the existing organization and its culture. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Why Business Must Be Concerned With Diversity Management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Arguments for Diversity Management Resource AcquisitionAttract Skilled and talented workforce Resource RetentionKeep the talent of their workforce Resource UtilizationBuild an environment where everyone can contribute fully Customer SensitivityBetter understand and respond to broad base of customers Innovation and CreativityBring fresh ideas and novel approaches Legal RequirementsRespond to and avoid legal problems Ethical StanceThe right thing to do

Keys to Building a Diversity Management Culture Top Management Champions Diversity Audit A snapshot of how good a job a business is doing in the area of diversity management. Goals and Accountability Education, Training, and Support McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.