1. Managing Diversity: Releasing Every Employee’s Potential Defining Diversity Building the Business Case for Managing Diversity Barriers and Challenges to Managing Diversity Chapter 2

2. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-2 Understanding Diversity Diversity: Host of individual differences that make us similar and different from each other Please stand up….. If the statement made doesn’t pertain to you have a seat! If a statement does describe you, stand up again!

3. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-3 The Four Layers of Diversity Personality Functional Level/ Classification Geographic Location Age Work Location Seniority Division/ Dept./ Unit/ Group Work Content/ Field Union Affiliation Mgmt. Status Marital Status Parental Status Appearance Educational Background Work Experience Race Income Personal Habits Religion Recreational Habits Ethnicity Physical Ability Sexual Orientation Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33

4. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-4 Managing Diversity Enables all people to perform up to their maximum potential. How can managing diversity be a competitive advantage?

5. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-5 Sources of Competitive Advantage What are the three strategies for successfully managing diversity?

6. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-6 Increased Workforce Diversity - Women Glass Ceiling Invisible barrier blocking women and minorities from top management positions March 2004 – Women received 76% of men’s earnings What helps break the ceiling?

7. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-7 Increased Workforce Diversity - Race Racial minorities are growing 2004 – 1,189 charges of discrimination to EEOC

8. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-8 Increased Workforce Diversity - Age

9. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-9 Pros and Cons of Diversity Social categorization theory Similarity leads to liking and attraction Information/Decision-Making Theory Diversity leads to better task-relevant processes and decision-making

10. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-10 A Process Model of Diversity

11. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-11 Morrison’s Diversity Initiatives Accountability practices Focus on treating diverse employees fairly Development practices Focus on preparing diverse employees for greater responsibility and advancement Recruitment practices Attempts to attract qualified diverse employees at all levels

12. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-12 Morrison’s Diversity Initiatives