BA 351 Managing Organizations Employee Diversity

As globalization increases, the need for__________ increases. affirmative action programs diversity management brainstorming climate oriented teamwork Both C and D

If effectively managed, diversity can provide: A powerful competitive edge The ability to foster creativity Improve problem solving Provide greater flexibility Make the firm more attractive to a broad labor market

Diversity Defined Diversity is a characteristic of a group of people suggesting differences among those people on any relevant dimension Diversity is a group characteristic, not an individual characteristic

Advantages of Employee Diversity Improved International Competition Better Market Access Better Team Performance Multiplicity of Points of View 3

The Challenges of Diversity Pressures Toward Homogenization Lower Cohesiveness Confusing Diversity With Affirmative Action Interpersonal Conflict and Tension 3

The U.S. workforce is a mosaic of diverse cultures and groups African Americans Older Workers Asian Americans Women Disabled Americans Homosexuals Hispanic Americans Foreign-Born Americans

Fourteen Dimensions of Diversity Diagram Work Background Educational Income Sexual/ Affection Orientation Age Race Marital Status Parental Status Physical Abilities/ Qualities Ethnicity Gender Military Experience Geographic Location Religious Beliefs

Laws Preventing Discrimination Exhibit 2.3 Federal Laws Preventing Employment Discrimination Laws Preventing Discrimination Law Employers Covered Who Is Protected Title VII of the 1964 Civil Rights Act, Civil Rights Act of 1991 Private employers, state and local governments, education institutions, employment agencies, and labor unions with 15 or more individuals Everyone based on race, color, religion, sex, or national origin Equal Pay Act of 1963 Virtually all employers Men and women who perform substantially equal work Age Discrimination in Employment Act of 1967 Private employers, state and local governments, education institutions, employment agencies, and labor unions with 20 or more individuals Individuals who are 40 years old or older Title I of the Americans with Disabilities Act of 1990 Private employers, state and local governments, education institutions, employment agencies, and labor unions with 15 or more individuals Individuals who are qualified and have a disability Source: U.S. Equal Employment Opportunity Commission, 2002, http://www.eeoc.gov/facts/qanda.html

Exhibit 2.1 Affirmative Action Programs vs. Diversity Management Programs Affirmative Action Diversity Management Exhibit 2-1 To prevent and remedy discrimination To create an inclusive work environment where all associates are empowered to perform their best Purpose Assimilation Assumes individuals will individually assimilate into the organization; individuals will adapt Assumes that managers and the organizations will change (i.e., culture, policies, and systems foster an all-inclusive work environment) Focus Recruitment, mobility, and retention Creating an environment that allows all associates to reach their full potential Cause of Diversity Problems Does not address the cause of problems Attempts to uncover the root causes of diversity problems Time Frame Temporary, until there is appropriate representation of disadvantaged groups Ongoing, permanent changes

True or False Affirmative Action programs attempt to uncover the root cause of diversity problems

Effective Diversity Management in High-Involvement Organizations Individual outcomes Commitment to the organization Job involvement Satisfaction Group outcomes Decision making Creativity Complex tasks Organizational outcomes Productivity Return on equity Market performance

Effectively Creating and Managing Diversity Commitment of the organization’s leaders Communicate message through multiple channels Top leaders personally lead all diversity efforts Vice presidents sponsor employee councils All managers held accountable for advancing diversity initiatives May require associates to be diversity advocates before promotion into leadership positions

Top Management Commitment Question to improve diversity: How can we develop all employees so that they are ready for opportunities that arise in the company? How can we be sure that minorities and women gain access to better jobs, as they become available? How can we make sure that we give minorities and women opportunities without discriminating against white men? How can we show all employees that we value their contributions? How can we change attitudes of both employees and customers? Will the same approach work for new employees and those with many years of service?

Linking Diversity to Strategies and Objectives It should be key components of corporate mission statements Inclusion in corporate handbooks Examples: Diversity briefing for senior management Networking groups Linking diversity performance to other corporate objectives Benchmarking with other companies

Effectively Creating and Managing Diversity Integration with the strategic plan Diversity Audits - Define and measure diversity effectiveness Associates’ attrition rate Associates’ work satisfaction Increased market share and new customer bases External awards for diversity efforts Satisfaction with workplace climate

Effectively Creating and Managing Diversity Associate involvement Focus groups Employee satisfaction surveys Cultural diversity audits Informal employee feedback hotlines

Effectively Creating and Managing Diversity Individual efforts Avoid rushing to judgment about others Take responsibility for being the gatekeeper at meetings Get to know people who are different from you Stick up for others when you see unfair behaviors

Problems With Stereotyping Faulty decision making Unrealistic assumptions Unfair treatment Stereotype Behavior Negative effects on interpersonal relations

Some of the problems with Stereo Typing individuals include all of the following except: Unfair treatment Realistic assumptions Negative effects on interpersonal relationships Faulty decision making

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