Diversity old Ch. 8 new Ch. 9 A critical organizational and managerial issue Affirmative action and managing diversity Competitive benefits Challenges Monolithic, pluralistic, and multicultural organizations Steps to cultivate diversity Global management: skills and knowledge Cultural differences influence management

Here’s a question Companies invest in training to enhance individual performance and organizational productivity. Which of the following is NOT a typical training exercise? A)Orientation training B)Team training C)Personality training D)Diversity training E)All of the above are typical

Managing Diversity What do you see as benefits of employing people with different backgrounds, beliefs, capabilities, and cultures? What do you see as the problems? How would you develop positive connections between diverse employees?

Components of a Diversified Workforce

Some typical dimensions of diversity Sex (gender) Race Age Religious affiliation Disability status Military experience Sexual orientation Educational level

Sex (gender) issues Women—almost half of the U.S. workforce 60% of all marriages are dual-earner 1 of 4 wives in two-income households earns more than husband Glass ceiling Pay disparities Sexual harassment

Women in America report US Dept. Commerce and White House March 2011 Age 25-34: more women with college degrees than men More women with graduate degrees Pay gap persists: 75 ₵ per $

Glass Ceiling Difficult for women/minorities to rise to top Fortune 500 companies: about 12 CEOs are women

Sexual Harassment Conduct of a sexual nature that has negative consequences for employment. Two categories Quid pro quo: agreeing to or rejecting sexual conduct affects employment decisions. Hostile environment: when unwelcome sexual conduct “has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.”

A Sexual Harassment Policy Develop/share a policy with all employees. Train supervisors: legal requirements, management role, and investigative procedures if charges occur. Establish a formal complaint procedure in which employees can discuss problems without fear of retaliation. Act promptly when employees complain. When investigation supports the charges, discipline the offender promptly. Follow up to ensure resolution.

Minorities and Immigrants Black, Asian, and Hispanic workers—one of four U.S. jobs Fastest growing: Asian, Hispanic, Black Three in ten college enrollees are non-Caucasian Foreign-born workers—15%+ of the U.S. labor force (half Hispanic, 22% Asian) One in 66 people in the U.S. identifies self as multiracial (might be 1 in 5 by 2050)

Managing diversity is more than eliminating discrimination Disparities in employment and earnings Hispanics, Blacks: Higher unemployment Minorities and Immigrants

Mentally and Physically Disabled People Largest unemployed minority Assistive technologies—ADA compliance, productivity What kind of work do you think?

The Future Impact of immigration Lower U.S. birth rates Median age of workers increasing 70% of workers between the ages of 45 and 74 intend to work in retirement

Older Employees

Example: Walgreens Read page 180. Benefits of Walgreens’ active efforts to hire disabled workers? Challenges in managing them?

Managing Diversity vs. Affirmative Action Managing Diversity: make positive use of differences in people Affirmative Action: efforts to hire people who were discriminated against in the past

Diversity as a competitive advantage Ability to attract good employees Better perspective on a differentiated market Creativity and innovation Organizational flexibility

Diversity challenges Seeing other perspectives can be hard Lack of cohesiveness Communication problems such as misunderstandings, inaccuracies, inefficiencies, and slowness People prefer people like themselves Different backgrounds and experiences may mean different interpretations

Some Diversity Assumptions

Multicultural Organizations Monolithic highly homogeneous employees Pluralistic relatively diverse employees population Multicultural encourages and uses cultural diversity

Cultivating a Diverse Workforce 1.Need top management’s commitment 2.Assess progress toward goals 3.Attract employees 4.Train employees in diversity—awareness and skills 5.Retain employees—support groups, mentoring

Managing Across Borders Expatriates Host-country nationals Third-country nationals

Successful Global Managers have… Are sensitive to cultural differences Have business knowledge Adventurous

International Cultural Differences Power distance –society accepts that power in organizations is distributed unequally Individualism/collectivism –people act on their own or as a part of a group Uncertainty avoidance –people in a society feel threatened by uncertain and ambiguous situations Masculinity/Femininity –a society values quantity of life over quality of life