1 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Diversity Management A diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices

2 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Organizational Barriers Old boys’ network –Informal relationships that provide increased opportunities for men –Reinforces a male culture Glass ceiling –Invisible, but real obstructions to career advancement of women and visible minorities –Results in frustration, career dissatisfaction, and increased turnover

3 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Glass Ceiling This picture depicts two working women trying to get to the top but are prevented by a glass barricade. A man is standing on top of that glass barricade. The glass ceiling refers to the barrier that prevents women form excelling to top positions simply because of their gender. The glass ceiling is very prominent in today’s society with women only making up 3percent of senior executives

4 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Glass Ceiling In order to break the glass ceiling many companies are trying to diversify their organizations so that people are equally hired and promoted (Gamble & Gamble, 2003, ).

5 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Old Boy An old boy network, or society, can refer to social and business connections among former pupils of male-onlyformer pupils

6 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Workplace Diversity Important human characteristics that influence values, perceptions of self and others, behaviours, and interpretations of events

7 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Dimensions of Diversity AgeGenderRaceReligion Ethnicity & Culture Sexual Orientation Mental & Physical Disabilities Education Past Work Experiences Family Status Income First Language Recreational Interests Geographic Location Family Background CoreSecondary

8 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Strategic Importance DiversityManagement ChangingWorkforce Importance of Human Capital Diversity as a CompetitiveAdvantage Increasing Role of Work Teams Paradigm (Concept) Shift Shifting from paper filing system to computer filing system

9 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Traditional versus New Paradigms Success from standardization Diversity is a cost Rules shaped by senior executives Emphasis on “masculine” values Change to suit the organization’s culture Success from individual contribution Diversity is a competitive advantage Rules to satisfy customers & employees “Feminine” values are important Modify culture to meet employee needs TraditionalNew

10 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Steps in Managing Diversity Identify Ideal Future State Analyze Present Systems and Procedures Change Systems, Procedures, and Practices Evaluate Results andFollow-up

11 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Current Industry Practices AlternateWorkArrangements MentoringPrograms Diversity Training Programs Apprenticeships Awareness training Skill-building training Senior manager provides guidance Can be formal or informal Non-traditional work arrangements Flextime, telecommuniting Provide more flexibility to employees A form of on-the-job training Learn from an experienced person more

12 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Current Industry Practices (cont’d) SupportGroups CareerDevelopment CommunicationStandards Pay attention to each individual Rely on older employees’ experience Opportunity to learn new skills Provides emotional support to new employees and employees who shares a common attribute (race, religion) Maintain formal internal protocols that eliminate biases (gender, racial) in communication

13 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas - Global Firms KeyFocusAreas EmployeeSensitization to Differences Recruitment & Selection CompensationDecisions Orientation, Training & Development PerformanceAppraisal making responsive to certain ideas, events and situations

14 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas – Global Firms Recruitment & Selection Expatriates (home country nationals sent to foreign location) Host country nationals (Canadians employed by HSBC Bank in Canada) Third country nationals (Hiring foreign nationals) PerformanceAppraisalOrientation, Training & DevelopmentCompensationDecisionsSensitizing to Cultural Differences

15 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas – Global Firms Recruitment & Selection PerformanceAppraisalCompensationDecisionsSensitizing to Cultural DifferencesOrientation, Training & Development Cross-cultural orientation themes – –Language ( English and French in Canada ) – –Cultural norms ( Canadians prefer masculinity, heroism; Swedish value femininity, modesty ) – –Managing personal and family life ( Cultural shock for expatriates ) Cross-cultural training methods – –Training provided to prepare employees for a foreign environment.

16 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas – Global Firms PerformanceAppraisalOrientation, Training & DevelopmentCompensationDecisionsSensitizing to Cultural Differences Home country evaluations – –Performance appraisal carried out by an expatriate’s home office Host country evaluations – –Performance appraisal carried out by an expatriate’s local (or host) office Recruitment & Selection PerformanceAppraisal

17 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas – Global Firms Orientation, Training & DevelopmentPerformanceAppraisalSensitizing to Cultural DifferencesRecruitment & Selection CompensationDecisions Relocation assistance – –Financial or other assistance to help expatriates move to the new work destination

18 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Focus Areas – Global Firms Sensitizing to Cultural DifferencesOrientation, Training & DevelopmentPerformanceAppraisalCompensationDecisions Diversity increases as foreign nationals are transferred to the home country and Home employees are transferred to other countries. Recruitment & Selection