1. Organizational Behavior BBA & MBA
Lecture 456
Diversity in Organizations
Course Lecturer: Farhan Mir

2. Expected Topics Attitude and Job Satisfaction Introduction
Management
Overview and key components
Management as a Field
What are Organizations?
Management Functions & Roles
Organization Behavior
Challenges and Issues for OB
OB Model
Diversity Management
Demographic Characteristics
Discrimination and EEO laws
Affirmative Actions Vs Diversity Management
Diversity Management Strategies
Attitude and Job Satisfaction
BAB (Beliefs, Attitude and Behavior) Model
Job Attitudes
Job Satisfaction and Its Outcomes & OCB
Dissatisfaction and CWB

3. Australia – Cultural Diversity

5. Demographics of the U.S. Workforce
Today’s workforce:
Is more ethnical and racially diverse
Includes more women and older workers
Has a smaller wage gap between Whites and other racial and ethnic groups
The demographics of the U.S. workforce has changed over the last thirty-plus years. Today’s workforce is not only more ethnically and racially diverse, it also includes more women and older workers. Wage gaps persist across genders and racial and ethnic groups; however, the gaps have begun to shrink.

7. Describe the Two Major Forms of Workforce Diversity
Diversity Management
Surface-Level Diversity
Everybody brings differences to an organization where they work. These differences can create energy and excitement in the workplace, but they can also cause conflict. So it is important that we have an understanding of how diversity works in organizations.
When we look at the workplace we can recognize two levels of diversity. Surface-level diversity represents the characteristics that are easily observed such as race, gender, age etc. Deep-level diversity represents the aspects that are more difficult to see at first glance such as values, personality, and work preferences.
Deep-Level Diversity

8. Biographical Characteristics and How Are They Relevant to OB
Those readily available in a personnel file
Age
Belief is widespread that job performance declines with increasing age.
The workforce is aging.
U.S. legislation that, for all intents and purposes, outlaws mandatory retirement.
Biographical characteristics represent many of the surface-level aspects of diversity. These are characteristics that are very easy to identify. Biographical characteristics typically include age, gender, and race. They can also include tenure, religion, sexual orientation, and gender identity. Let’s look at the first, AGE. Age is an increasingly relevant characteristic as the workforce is aging. Older workers bring with them a wealth of knowledge and experience, but the perception is that productivity often declines with age. Whether this is true or not, it is a perception people act upon and will affect the workplace. And recent legislative actions have basically done away with mandatory retirement at any age.

10. Biographical Characteristics and How Are They Relevant to OB
Those readily available in a personnel file
Sex
Few issues initiate more debates, misconceptions, and unsupported opinions than whether women perform as well on jobs as men do.
Few, if any, important differences between men and women affect job performance.
Psychological studies have found women are more agreeable and willing to conform to authority, whereas men are more aggressive and more likely to have expectations of success, but those differences are minor.
The second of the biological characteristics is sex. In studying gender in the workplace, it has been found that there are very few differences between men and women that impact job performance. However, women, especially those with pre-school age children, do prefer flexible work schedules and will seek an employer who offers options in their schedules.

12. Biographical Characteristics and How Are They Relevant to OB
Those readily available in a personnel file
Race and Ethnicity
Employees tend to favor colleagues for their own race in performance evaluations, promotion decisions, pay raises.
Different attitudes on affirmative action with African-Americans preferring such programs than do whites.
African-Americans generally do worse than whites in employment decisions.
No statistical difference between Whites and African-Americans in observed absence rates, applied social skills at work, or accident rates.
Race and Ethnicity offers little explanation for differentials in workplace outcomes. It has been shown, however, that people in the workplace do identify more with people like themselves so in some cases there may be opportunities given to people based on the fact that they are like their supervisor. In general, research has found no significant differences in race or ethnic backgrounds related to absence rates, applied social skills or accident rates.

14. Biographical Characteristics and How Are They Relevant to OB
Those readily available in a personnel file
Disability
A person is disabled who has any physical or mental impairment that substantially limits one or more major life activities.
The “reasonable accommodation” is problematic for employers.
Strong biases exist against those with mental impairment.
A person with a disability is one who has a physical or mental impairment that limits one or more major life activities. The Americans with Disabilities Act of 1990 requires employers to make “reasonable accommodation” for disabilities. Because of its vagueness, this provision is problematic for employers. The result is the existence of string biases against those with disabilities, particularly mental.

15. Biographical Characteristics and How Are They Relevant to OB
Those readily available in a personnel file
Tenure
The issue of the impact of job seniority on job performance has been subject to misconceptions and speculations.
Religion
Although employees are protected by U.S. federal law regarding their religion, it is still an issue in the workplace.
Tenure refers to the length of time people have been on the job and is tied to seniority. Often, tenure is seen as a positive as it signifies that people are happy with their employment because they have remained in their job for a long period of time. Therefore, employees with long tenure tend to be more productive, call in sick less frequently, and don’t leave the organization as readily.
Religion may also impact work outcomes due to religious restrictions, such as dress and grooming. Schedules may also conflict with the way work is typically done, such as a Muslim worker adhering to the prayer schedule outlined in Islam.

16. Define Intellectual Abilityand Demonstrate Its Relevance to OB
Ability is an individual’s current capacity to perform various tasks in a job
Two types
Intellectual abilities
Physical abilities
Ability is an individual’s capacity to perform job tasks. In discriminating between people, two types of abilities can be assessed. First is Intellectual abilities and second it physical ABILITIES

17. Define Intellectual Abilityand Demonstrate Its Relevance to OB
Intellectual abilities are abilities needed to perform mental activities—thinking, reasoning, and problem solving.
Most societies place a high value on intelligence, and for good reason.
Intellectual abilities are those needed to perform mental activities. These would include abilities in critical thinking, reasoning and problem solving. In most cultures high value is placed on intelligence and it is easy to see why. These skills provide solutions and actions that are positive in a culture or society’s development.

18. Define Intellectual Abilityand Demonstrate Its Relevance to OB
Number Aptitude
Memory
Verbal Comprehension
Intellectual Ability
Spatial Visualization
Perceptual Speed
The seven most frequently cited dimensions making up intellectual abilities are number aptitude, verbal comprehension, perceptual speed, inductive reasoning, deductive reasoning, spatial visualization, and memory. Exhibit 2.2 describes these dimensions.If you score high on verbal comprehension, you’re more likely to also score high on spatial visualization. Evidence strongly supports the idea that the structures and measures of intellectual abilities generalize across cultures.
Deductive Reasoning
Inductive Reasoning
Exhibit 2.2

19. Contrast Intellectual from Physical Ability
Physical Abilities
The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.
The three main categories of physical ability are…
Strength
Flexibility
And Other characteristics
Physical abilities are needed when performance requires physical activity to complete a task. People must have the capacity to do tasks that demand stamina, dexterity, strength, and similar physical abilities. There are three main categories of physical ability – strength, flexibility and other characteristics.

20. Contrast Intellectual from Physical Ability
Insert Exhibit 2.3 .
Strength factors include dynamic strength, trunk strength, static strength, and explosive strength. Flexibility factors include both components of extent flexibility and dynamic flexibility. Other strength factors include body coordination, balance, and stamina.

21. Contrast Intellectual from Physical Ability
Importance of ability at work increases difficulty in formulating workplace policies that recognize disabilities.
Recognizing that individuals have different abilities that can be taken into account when making hiring decisions is not problematic.
It is also possible to make accommodations for disabilities.
When an organization discusses abilities, it can cause difficulty when developing policies that recognize diversity in terms of disabilities. While it is important for the organization to strive for diversity in the hiring process, it is important to be careful to avoid discriminatory practices during hiring by making generalizations about people with disabilities.

22. Describe the Major Forms of Workforce Diversity
Insert Exhibit 2.1
Exhibit 2-1 lists definitions and examples of different types of discrimination (page 77).Under increasing legal scrutiny and social disapproval, most forms have faded. This observation and attention may have resulted in an increase in covert forms such as incivility or exclusion.Some forms are difficult to affect because they are unobservable. Whether intentional or not, serious negative consequences may arise for employers.Diversity is a broad term, and workplace diversity can describe any characteristic that makes one person different from another.

23. Stereotypes and How They Function in Organizational Settings
“Discrimination” is to note a difference between things.
Unfair discrimination is assuming stereotypes about groups and refusing to recognize differences.
The concept of “discrimination” is to note differences between things. A person who believes in differences between pizzas made by one firm and another, and believes the differences are significant is discriminating. Stereotyping is when differences between things are reduced in importance and similarities are over emphasized. For example, considering a young person as an individual with personal likes, dislikes, attitudes and behaviors is discriminating. Considering him or her as a drunken, dope smoking college kid is negative stereotyping. Stereotyping by preexisting beliefs and ideas associated with the physical characteristics leads to unfair discrimination and negative attitudes and feelings among workers. Recognizing people for their abilities rather than assumptions of stereotypes is an important part of OB and its application to the work environment.

24. Introduction
Equal employment opportunity (EEO) has implications for almost every activity in HRM
HR officials and managers in every function of the organization are involved
EEO programs are implemented to:
Prevent employment discrimination in the workplace
Take remedial action to offset employment discrimination

25. Problems at Boeing Boeing Introduction
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined
customers in 145 countries around the world
Famous for it’s 737 and 747 aircrafts
Boeing has a long tradition of aerospace leadership and innovation
Headquartered in Chicago, Illinois, U.S.A., Boeing employs more than 155,000 people in some 67 countries

29. Problem at Boeing The Problem
Although facing stiffer competition from outside by companies like Airbus but at this moment we are discussing “Internal Problem based on ethics
Boeing has faced many discrimination complaints
For Example: 38 females engineers filed a discrimination case against company in year 2000
The case suggested that woman were paid less as compared to men especially at start of their jobs
“Business Week” investigated into the matter and found that this differences in pay was not a new phenomenon rather was evident in past
Salary Analysis in 1999 showed that Boeing needed to allocated $30 million to eliminate gender-based pay differences but rather allocated $10 million only
The Lawsuit (case) was based on potential plaintiffs and liability of $1 Billion
Boeing people themselves believe that something generally not right about the way they are doing it

30. What is Discrimination?

31. Equal Employment Opportunity Laws in US
Title VII of the 1964 Civil Rights Act
Pregnancy Discrimination Act of 1978
Civil Rights Act of 1991
Equal Pay Act of 1963
Age Discrimination in Employment Act of 1967 (ADEA)
Americans with Disabilities Act of 1990 (ADA)

32. Enforcing the Law Equal Employment Opportunity Commission (EEOC)
Title VII
Office of Federal Contract Compliance Programs (OFCCP)
Executive Order 11246
The Courts
interpret the laws governing EEO

33. Describe How Organizations Manage Diversity Effectively
Attracting, Selecting, Developing, and Retaining Diverse Employees
Knowing that people are different is not enough for organizations to operate effectively with differences. Managers must work to develop strategies to develop ways to utilize differences to achieve work outcomes. Managers start by attracting, selecting, developing, and retaining employees who can operate and excel in a workplace with diverse individuals, viewpoints, and ideas. Gaining a diverse workforce through the selection process and developing that workforce through organizational training and development programs will help to provide for an environment that fosters creativity and effectiveness by tapping into the potential of all employees.
More and more organizations are requiring employees to work in groups. Diversity can aid in group effectiveness and it can diminish it. Organizations must provide the tools to leverage the differences to obtain superior performance.
Effective workforce programs that encourage diversity contain three components. Let’s look more closely at these.
Effective Diversity Programs
Diversity in Groups

34. Describe How Organizations Manage Diversity Effectively
Effective Diversity Programs
Teach Legal Framework
Effective Diversity programs have three components.They teach managers about the legal framework for equal employment opportunity and encourage fair treatment of all people regardless of their demographic characteristics.They teach managers how a diverse workforce will be better able to serve a diverse market of customers and clients.They foster personal development practices that bring out the skills and abilities of all workers, acknowledging how differences in perspective can be a valuable way to improve performance for everyone.
Effective workforce programs that encourage diversity contain three components. First, they teach managers about the laws they need to follow and equal employment opportunity requirements. Second, they help managers and employees to see that a diverse workforce is better able to serve diverse markets. Third, they take into account personal differences and approach the differences as strengths that can be utilized to enhance performance.
Teach the Market Advantages
Foster the Skills and Abilities of All Workers

38. Diversity Management – True Essence

39. Managerial Implications and Summary
This chapter looked at diversity from many perspectives paying particular attention to three variables—
biographical characteristics,
ability, and
diversity programs.
This chapter examines the issue of diversity in organizations by focusing on three areas of concern…biographical characteristics, ability and diversity programs themselves. These three areas provide a foundation for building an understanding of the effects that diversity has or organizations and the people that comprise them. By acquiring an understanding of these issues, a manager can be a more effective leader achieving greater outcomes because of the unifying effects of diversity applications.

40. Diversity for Success: Case Study on UPS
Introduction
Founded in 1907 as a messenger company in the United States
the world's largest package delivery company and a leading global provider of specialized transportation and logistics services
Manage the flow of goods, funds, and information in more than 200 countries and territories worldwide.
The Company has got a global posture
UPS´s workforce is multicultural, multidimensional, and reflective of the broad attributes of our global communities
FORTUNE® magazine as one of the "50 Best Companies for Minorities

42. UPS and Diversity Views about workforce
It is not about race or gender or background rather the focus is about how much employees care about the company or good at their jobs
1/3 of the employees are from minorities
Representation of minorities is also at each level of the organization
Has a supplier diversity Program encouraging small and minority group suppliers
Diversity driving UPS towards success (may be other factors but diversified workforce with new ideas and flavors is a strong contributing factor

43. UPS and Diversity
African-Americans, Hispanics, Asian-Pacific Americans and other minorities make up 35 percent of the company´s 348,400 employees in the United States.
Minorities accounted for half of UPS´s new employees in 2005.
Women represent 28 percent of the U.S. management team and 20 percent of the overall workforce, holding jobs from package handlers, to drivers, to senior management and to the UPS Board of Directors.
Among the company´s 63,000 U.S. managers, minorities hold nearly 30 percent of those executive positions. Positions held include district managers, the UPS Management Committee, and UPS´s Board of Directors.

44. Managerial Implications and Summary
Diversity programs
Selection
An effective selection process will improve the fit between employees and job requirements.
Diversity Management
Diversity management must be an ongoing commitment that crosses all levels of the organization.
Diversity programs includes emphasis on the areas of recruitment, selection, and retention of employees. Strong diversity programs will ensure that employees fit the organization and its job requirements to provide a basis for more effective job satisfaction and productivity. But the fit must be determined equally and fairly to ensure the solid relationship among employees.
IN order to accomplish this, the diversity management in the organization must by a commitment of all levels of management and across all functions of the organization. Lead by example to get the best from your organizational situation.