2-1 Michael A. Hitt C. Chet Miller Adrienne Colella Organizational Diversity Chapter 2 Organizational Diversity Slides by Ralph R. Braithwaite

2-2 Diversity in the LAFD What are your thoughts about the opening scenario? Are there jobs that should be left to one gender or the other? Why or why not? Have you seen discrimination based on race? Were the consequences as a result of the Los Angeles Fire Department’s actions too lenient, too severe, or just right? Do you think the “steps to remedy the situation” are enough? Why or why not? Exploring Behavior in Action

2-3 Knowledge Objectives 1.Define organizational diversity and distinguish between affirmative action and diversity management. 2.Distinguish multicultural, plural, and monolithic organizations. 3.Describe the demographic characteristics of the U.S. population and explain their implications for the composition of the workplace. 4.Discuss general changes in the United States that are increasing the importance of managing diversity effectively. 5.Understand why successfully managing diversity is extremely important for high-involvement work organizations. 6.Discuss the various roadblocks to effectively managing a diverse workforce. 7.Describe how organizations can successfully manage diversity.

2-4 Diversity Defined A characteristic of a group of people where differences exist on one or more relevant dimensions such as gender. Diversity is a group characteristic, not an individual characteristic.

2-5 Common Dimensions Gender Race Ethnicity Age Religion Social Class Sexual Orientation Personality Functional Experience Geographical Background

2-6 Quote “The effects of diversity can result from any attribute that people use to tell themselves that another person is different.” K. Y. Williams and C. A. O’Reilly Thoughts?

2-7 Examples of Definitions Thoughts?

2-8 Strategic Importance of Organizational Diversity Improves Corporate culture Recruitment Relationships with clients and customers Builds competitive advantage Understand and serve diverse customer base Heterogeneous teams deal better with complex problems and challenging tasks More commitment to organization’s mission

2-9 Affirmative Action vs. Diversity Management Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity Management Programs Ongoing, permanent changesTemporary, until representation of disadvantaged groups Time Frame Attempts to uncover the root causes of diversity problems Does not address the cause of problems Cause of Problems Allows all associates to reach their full potential Recruitment, mobility, and retention Focus Assumes that managers and the organizations will change Assumes individuals will assimilate and adapt Assimilation Create an inclusive, empowered work environment Prevent and remedy discrimination Purpose Diversity ManagementAffirmative Action

2-10 Organizational Diversity Multicultural Organization Plural Organization Monolithic Organization

2-11 Forces of Change Changing workforce demographics – percentage by race, age and sex – Exhibit 2-2 Increase in the service economy Global economy Requirements for teamwork

2-12 High-Involvement Organizations Commitment to the organization Job involvement Satisfaction Individual Outcomes Decision making Creativity Complex tasks Productivity Return on equity Market performance Group Outcomes Organizational Outcomes

2-13 Societal and Moral Outcomes $10.5M & $8M $192.5M $176M $132.5M $250M $47M $508M

2-14 Laws Preventing Discrimination Adapted from Exhibit 2-3: Federal Laws Preventing Employment Discrimination Title VII of the 1964 Civil Rights Act, Civil Rights Act of 1991 Equal Pay Act of 1963 Age Discrimination in Employment Act of 1967 Title I of the Americans with Disabilities Act of 1990

2-15 The Case of France Religious discrimination Discrimination issues in hiring Promotional issues Thoughts on the policy of not collecting data on race and ethnicity or no affirmative action laws? Thoughts on what these companies are doing? Experiencing Strategic OB

2-16 Roadblocks to Diversity

2-17 Prejudice and Discrimination PrejudiceDiscrimination Modern Racism

2-18Stereotypes A generalized set of beliefs about the characteristics of a group of individuals What thoughts come to mind when you perceive the individuals in these photographs?

2-19 Common Stereotypes Adapted from Exhibit 2-4: Common Stereotypes White Men Women People with Disabilities Jewish People Black People Japanese Men Arab People AthletesAccountants

2-20 Stereotyping – Difficult to Stop Tough to dispel Guide what information we look for, process and remember Seems to be an enduring human quality – everyone has some stereotypes

2-21 Women, Work and Stereotypes Experiencing Strategic OB While things have improved, are there still gender issues in the workplace? Are the issues faced by the women in the text unique and unusual? What are your thoughts about the survey conducted by Elle and MSNBC.com?

2-22 Social Identity A person’s knowledge that he or she belongs to certain social groups, where belonging to those groups has emotional significance. Key Points: Person’s social identity becomes more salient and noticeable when in the minority on an important dimension Having a social identity different than the majority may make people feel they have to behave in ways that are unnatural for them in certain contexts Minority group members often fear losing their social identity People often evaluate others based on their membership in social groups

2-23 Sample Self-Identity Structures Adapted from Exhibit 2-5: Sample Self-Identity Structures

2-24 Sources of Power Expert Knowledge Formal Position Control Rewards and Resources Being Irreplaceable

2-25 Ascribed Status Status and power that is assigned by cultural norms and depends on group membership High-status individuals speak more and use stronger influence tactics than members of low- status groups People belonging to groups with different amounts of power and status may avoid interacting with one another and may form cliques with members of their own groups

2-26 Communication Problems Different languages Different levels of fluency in the dominant language Excluding those who don’t speak the language

2-27 Communication Disagreement Among Cultures Willingness to openly disagree Importance of maintaining “face” or dignity The way “agreement” is defined Time devoted to establishing personal relationships Willingness to speak assertively Mode of communication - written or verbal Personal space and nonverbal communication

2-28 Structural Integration The degree to which minorities and women are represented in all occupations within an organization. Two levels exist – poorly integrated and well integrated. The next two slides show examples of each – both organizations have approximately 35% of the employees being female and/or minority.

2-29 Poor Structural Integration Middle Management 0% 2%0% 1%10%2% 0%5%15%5% 25% 40%26% 60%65%80%75% 0.5% 3.25% 6.25% 29% 70% Finance Marketing HR Sales Average All Functions Top Management Supervisor Staff Line Worker Percentage of people who are female and/or racial and ethnic minority group members Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations

2-30 Good Structural Integration Percentage of people who are female and/or racial and ethnic minority group members 35% Top Management Supervisor Staff Middle Management Line Worker Finance Marketing HR Sales Average All Functions Adapted from Exhibit 2.6: Examples of Poorly Integrated and Well-Integrated Organizations

2-31 Roadblocks Poor integration creates power and status differentials – become associated with gender and race Poor integration fosters negative stereotypes Women and minorities who are successful may be perceived to have token status Women and minorities perception – impossible to move up

2-32 Commitment of Leaders Communicate through multiple channels Personally lead all diversity efforts Sponsor employee councils Ensure cross-cultural communication Be accountable for advancing diversity initiatives

2-33 Managerial Advice Promoting a Positive Diversity Environment Principles Pause to short circuit the emotion and reflect Connect with others in ways that affirm the importance of relationships Question interpretations and explore blind spots Obtain genuine support that doesn’t necessarily validate initial points of view but rather helps in gaining a broader perspective Shift the mindset Thoughts?

2-34 Integration With the Strategic Plan Increased market share and new customer bases External awards for diversity efforts Associates’ attrition rate Associates’ work satisfaction Associates’ and managers’ satisfaction with workplace climate Common measures of diversity effectiveness include:

2-35 Associate Involvement Discussion groups from a cross-section of staff Employee satisfaction surveys Cultural diversity audits Informal employee feedback hotlines Develop and support affinity groups – groups that share common interests Provide training

2-36 Diversity Initiatives at Denny’s Recruiting Retention Development External partnerships Communication Training Staffing and infrastructure

2-37 The Strategic Lens 1.How does organizational diversity contribute to an organization’s competitive advantage? 2.What actions are required to create diversity in an organization, particularly in one that has homogeneous membership at present? 3.How does diversity in an organization affect its strategy?

2-38 Questions