1. © 2008 by Prentice Hall3-1 Human Resource Management 10 th Edition Chapter 3 WORKPLACE DIVERSITY, EQUAL EMPLOYMENT OPPORTUNITY, AND AFFIRMATIVE ACTION

2. © 2008 by Prentice Hall3-2 HRM in Action: Sequencing Moms, Bringing Them Back Today, more new mothers are leaving the labor force only to return later, often called sequencing moms Major employers are reaching out to sequencing moms to be sure they do not make a permanent exit Tangible shift toward companies accepting returning women professionals

3. © 2008 by Prentice Hall3-3 Projected Future Diverse Workforce By 2010, civilian labor force is projected to increase by 17 million to 158 million. U.S. workforce will become more diverse U.S. Department of Labor projects by 2013, available jobs will outnumber workers by 6.7 million and by 2030, available jobs will outnumber workers by 30 million.

4. © 2008 by Prentice Hall3-4 Diversity and Diversity Management Diversity - Any perceived difference among people: age, race, religion, functional specialty, profession, sexual orientation, geographic origin, lifestyle, tenure with organization, or position, and any other perceived difference.

5. © 2008 by Prentice Hall3-5 Diversity Management Ensuring factors are in place to provide for and encourage continued development of diverse workforce by melding actual and perceived differences among workers to achieve maximum productivity

6. © 2008 by Prentice Hall3-6 Managing Diverse Workforce: Various Components Single Parents & Working Mothers Women in Business Dual Career Families Workers of Color Older Workers Persons with Disabilities Immigrants Young Persons with Limited Education/Skills Educational Level of Employees

7. © 2008 by Prentice Hall3-7 Single Parents and Working Mothers Number is growing Many marriages end in divorce Widows and widowers who have children Need alternative child-care arrangements 72% of mothers with children under 18 are in work force

8. © 2008 by Prentice Hall3-8 Women in Business Account for 45% of workforce Hold half of all management, professional, and related occupations Over 9 million women-owned businesses Increasing number of nontraditional households Organizations must address work/family issues

9. © 2008 by Prentice Hall3-9 Dual Career Families Both husband and wife have jobs and family responsibilities Majority of children growing up today have both parents working outside home Some have established long-distance jobs Want more workplace flexibility Revised nepotism policy

10. © 2008 by Prentice Hall3-10 Workers of Color Often experience stereotypes Often encounter misunderstandings and expectations Bicultural stress Socialization in one’s culture of origin can lead to misunderstandings in workplace

11. © 2008 by Prentice Hall3-11 Older Workers Population is growing Long-term labor shortage is developing Many organizations actively courting older employees to remain on job longer Needs and interests may change May require retraining

12. © 2008 by Prentice Hall3-12 Persons with Disabilities Limits amount or kind of work person can do or makes its achievement unusually difficult Perform as well as unimpaired in productivity, attendance and average tenure ADA prohibits discrimination against qualified individuals with disabilities Serious barrier is bias, or prejudice Manager can set the tone

13. © 2008 by Prentice Hall3-13 Immigrants Large numbers of immigrants from Asia and Latin America have settled in many parts of United States Newer immigrants require time to adapt Managers must work to understand different cultures and languages

14. © 2008 by Prentice Hall3-14 Young Persons with Limited Education or Skills Many thousands of young, unskilled workers are hired Poor work habits Tardy or absent Can do many jobs well Jobs can be de-skilled

15. © 2008 by Prentice Hall3-15 Educational Level of Employees Bipolar country with regard to education Half of new jobs need some education beyond high school Those with limited education will be left out of empowerment effort

16. © 2008 by Prentice Hall3-16 Trends & Innovations: Superdads Majority of men today are vastly more involved in the rearing of their children and maintenance of their households than their fathers were Job of stay-at-home dad is becoming more attractive to today’s working dads Have disadvantage of having few role models to show them the way

17. © 2008 by Prentice Hall3-17 Equal Employment Opportunity And Affirmative Action

18. © 2008 by Prentice Hall3-18 Equal Employment Opportunity: An Overview EEO modified since passage of Equal Pay Act of 1963, Civil Rights Act of 1964, and Age Discrimination in Employment Act of 1967 Congress has passed other legislation Major Supreme Court decisions interpreting provisions handed down Executive orders signed into law

19. © 2008 by Prentice Hall3-19 Laws Affecting Equal Employment Opportunity

20. © 2008 by Prentice Hall3-20 Civil Rights Act of 1866 Oldest federal legislation affecting staffing Based on Thirteenth Amendment No statute of limitations Employment is a contractual arrangement

21. © 2008 by Prentice Hall3-21 Equal Pay Act of 1963 Prohibits employer from paying employee of one gender less money than employee of opposite gender, if both employees do work that is substantially the same Jobs considered substantially the same when they require equal skill, effort, and responsibility and they are performed under similar working condition

22. © 2008 by Prentice Hall3-22 Title VII of Civil Rights Act of 1964 - - Amended 1972 Greatest impact on HR management Illegal for employer to discriminate Fifteen or more employees Exceptions to Title VII Persons not covered by Title VII Created the Equal Employment Opportunity Commission (EEOC)

23. © 2008 by Prentice Hall3-23 Illegal for Employer to Discriminate Race Color Sex Religion National origin

24. © 2008 by Prentice Hall3-24 Exceptions to Title VII Bona fide occupational qualifications (BFOQs) Seniority and merit systems Testing and educational requirements

25. © 2008 by Prentice Hall3-25 Persons Not Covered by Title VII Aliens not authorized to work in United States Members of Communist party Homosexuals

26. © 2008 by Prentice Hall3-26 Age Discrimination in Employment Act Of 1967--amended In 1978 & 1986 Illegal to discriminate against anyone 40 years or older Administered by EEOC Pertains to employers who have 20 or more employees Provides for trial by jury Possible criminal penalty Older Workers Benefit Protection Act (OWBPA)

27. © 2008 by Prentice Hall3-27 Age Can Be Bona Fide Occupational Qualification Federal Aviation Administration can force commercial pilots to retire at 60 Greyhound did not violate ADEA when refused to hire persons 35 years or older as intercity bus drivers Likelihood of risk or harm to passengers was involved with both cases

28. © 2008 by Prentice Hall3-28 Rehabilitation Act of 1973 Prohibits discrimination against disabled workers Government contractors, subcontractors, and organizations Two primary levels $2,500 required to post notices they agree to take affirmative action to recruit, employ, and promote qualified disabled individuals

29. © 2008 by Prentice Hall3-29 Rehabilitation Act of 1973 (Cont.) If contract or subcontract exceeds $50,000, or if contractor has 50 or more employees, employer must prepare written affirmative action plan Administered by Office of Federal Contract Compliance Programs (OFCCP)

30. © 2008 by Prentice Hall3-30 Pregnancy Discrimination Act of 1978 Amendment to Title VII of Civil Rights Act Pregnancy, childbirth, or related medical condition Questions about family plans, birth control techniques, and the like may be discriminatory because they are not asked of men Benefits area also covered

31. © 2008 by Prentice Hall3-31 Immigration Reform and Control Act (IRCA) of 1986 Granted amnesty to approximately 1.7 million long-term unauthorized workers Established criminal and civil sanctions against employers who knowingly hire unauthorized aliens Reduces threshold coverage to 4 employees Toughened criminal sanctions for employers who hire illegal aliens

32. © 2008 by Prentice Hall3-32 Immigration Reform and Control Act (IRCA) of 1986 (Cont.) Denied illegal aliens federally funded welfare benefits Legitimized some aliens through an amnesty program Candidates for employment are not required to be U. S. citizens but they must prove they are eligible to work in the United States

33. © 2008 by Prentice Hall3-33 Immigration Reform and Control Act (IRCA) of 1986 (Cont.) Employers must require all new employees to complete and sign a verification form (Form I-9) to certify their eligibility for employment Establish their eligibility for employment by presenting a U.S. passport, alien registration card with photograph, or a work permit that establishes the person’s identity and employment eligibility

34. © 2008 by Prentice Hall3-34 Illegal Immigration Reform and Immigrant Responsibility Act of 1996 Passed partly in response to the fact that at least one of the terrorists who blew up World Trade Center (1993) had legally entered on a student visa Places severe limitations on persons who come to United States and remain in the country longer than permitted by their visas and/or persons who violate their nonimmigrant status Three year ban Ten year ban

35. © 2008 by Prentice Hall3-35 Americans with Disabilities Act of 1990 (ADA) Prohibits discrimination against qualified individuals with disabilities Person who has, or is regarded as having, a physical or mental impairment that substantially limits one or more major life activities, and has a record of such an impairment, or is regarded as having such an impairment

36. © 2008 by Prentice Hall3-36 Americans with Disabilities Act (ADA) (Cont.) EEOC guidelines on pre-employment inquiries and tests regarding disabilities prohibit inquiries and medical examinations intended to gain information about applicants’ disabilities before a conditional job offer Ask only about potential employees’ ability to do the job, and not about their disabilities

37. © 2008 by Prentice Hall3-37 Civil Rights Act of 1991 Provide appropriate remedies for intentional discrimination and unlawful harassment Codify business necessity and job related Confirm authority and guidelines for finding of disparate impacts under Title VII. Disparate impact occurs when certain actions in the employment process work to the disadvantage of members of protected groups. Concept discussed under the topic of adverse impact.

38. © 2008 by Prentice Hall3-38 Civil Rights Act of 1991 (Cont.) Expand scope of relevant civil rights statutes to provide adequate protection to victims of discrimination Extraterritorial employment Does not apply to U.S. companies operating in other countries if it would violate laws or customs of foreign country Glass Ceiling Act

39. © 2008 by Prentice Hall3-39 Damages Permitted Number of Employees Damages 15-100 $50,000 101-200 $100,000 201-500 $200,000 Over 500 $300,000

40. © 2008 by Prentice Hall3-40 Glass Ceiling Invisible barrier in organizations that prevents many women and minorities from achieving top-level management positions

41. © 2008 by Prentice Hall3-41 Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 Provide protections to Reservists and National Guard members Workers entitled to return to civilian employment after completing military service Intended to eliminate or minimize employment disadvantages to civilian careers that can result from service in uniformed services

42. © 2008 by Prentice Hall3-42 Veterans’ Benefits Improvement Act (VBIA) of 2004 Amends portions of the USERRA Enhances housing, education, and other benefits for veterans Requires employers to post a notice informing employees of their rights under USERRA Increases the health care continuation period for employees on military leave from 18 months to 24 months

43. © 2008 by Prentice Hall3-43 State and Local Laws State and local laws affect EEO When EEOC regulations conflict with state or local civil rights regulations Legislation more favorable to women and minorities applies

44. © 2008 by Prentice Hall3-44 Significant U.S. Supreme Court Decisions Griggs v Duke Power Company Albermarle Paper Company v Moody Phillips v Martin Marietta Corporation Espinoza v Farah Manufacturing Company Dothard v Rawlingson University of California Regents v Bakke

45. © 2008 by Prentice Hall3-45 Significant U.S. Supreme Court Decisions (Cont.) American Tobacco Company v Patterson Adarand Constructors v Pena Grutter v Bollinger Gratz v Bollinger O'Connor v Consolidated Coin Caterers Corp.

46. © 2008 by Prentice Hall3-46 Griggs v Duke Power Company Major decision affecting HR management When HR management practices eliminate higher percentage of minority or women applicants, burden of proof on employer to show practice is job related

47. © 2008 by Prentice Hall3-47 Griggs v Duke Power Company (Cont.) Questions in employment procedures that should be avoided if not job related include credit record, conviction record, garnishment record, and education Asking nonjob-related questions is legal; it is how a hiring person uses information that makes it illegal

48. © 2008 by Prentice Hall3-48 Albermarle Paper Company v Moody Reaffirmed idea that any test used in selection process, or in promotion decisions, must be validated if it has an adverse impact on women and minorities

49. © 2008 by Prentice Hall3-49 Phillips v Martin Marietta Corporation Company discriminated against woman because she had young children Major implication – Firm cannot impose standards for employment only on women Neither application forms nor interviews should contain questions for women that do not also apply to men

50. © 2008 by Prentice Hall3-50 Phillips v Martin Marietta Corporation (Cont.) Examples of questions that should not be asked are: Do you wish to be addressed as Ms., Miss, or Mrs.? Are you married? Do you have children? Do you plan on having any more children? Where does your spouse work?

51. © 2008 by Prentice Hall3-51 Espinoza v Farah Manufacturing Company Title VII does not prohibit discrimination on basis of lack of citizenship

52. © 2008 by Prentice Hall3-52 Dothard v Rawlingson Impact of decision was height and weight requirements must be job related. Argument does not rebut prima facie evidence showing requirements have discriminatory impact on women, whereas no evidence was produced correlating these requirements with requisite amount of strength thought essential to good performance

53. © 2008 by Prentice Hall3-53 University of California Regents v Bakke Reaffirmed that race may be taken into account in admission decisions

54. © 2008 by Prentice Hall3-54 American Tobacco Company v Patterson Allows seniority and promotion systems established since Title VII to stand, although they unintentionally hurt minority workers

55. © 2008 by Prentice Hall3-55 O’Connor v Consolidated Coin Caterers Corp. Declared discrimination is illegal even when all employees are members of the age protected age group.

56. © 2008 by Prentice Hall3-56 Adarand Constructors v Pena Criticized moral justification for affirmative action, saying race- conscious programs cause unconstitutional reverse discrimination and harm those they seek to advance

57. © 2008 by Prentice Hall3-57 Grutter v Bollinger Appeared to support the Bakke decision Ruled in a 5-4 decision that colleges and universities have a compelling interest in achieving diverse campuses Schools may favor black, Hispanic, and other minority students in admissions as long as administrators take the time to assess each applicant’s background and potential

58. © 2008 by Prentice Hall3-58 Gratz v Bollinger In trying to achieve diversity, colleges and universities cannot use point systems that blindly give extra credit to minority applicants Court determined that Michigan’s 150-point index for screening applicants, which gave an automatic 20 points to minority applicants, was not the proper way to achieve racial diversity

59. © 2008 by Prentice Hall3-59 Equal Employment Opportunity Commission (EEOC) Title VII of Civil Rights Act, as amended, created the EEOC Filing a discrimination charge initiates EEOC action. Certain exceptions to coverage of Title VII

60. © 2008 by Prentice Hall3-60 Steps in Handling a Discrimination Case Charge Filed Investigation by the EEOC Issue a Probable Cause or a No Probable Cause Statement Attempt at Conciliation Recommendations for or Against Litigation Attempt at a No-Fault Settlement Recommendation Against Litigation – Right to Sue Notice Issued to Charging Party Recommendation for Litigation – EEOC Initiates Action

61. © 2008 by Prentice Hall3-61 Equal Employment Opportunity Commission (Cont.) Some factors that determine whether EEOC will pursue litigation are (1) number of people affected by alleged practice; (2) amount of money involved in charge; (3) other charges against employer; and (4) type of charge. EEOC files suit in only about 1% of charges

62. © 2008 by Prentice Hall3-62 Uniform Guidelines on Employee Selection Procedures Single set of principles designed to assist employers, labor organizations, employment agencies, and licensing and certification boards in complying with federal prohibitions against employment practices that discriminate on basis of race, color, religion, gender, and national origin

63. © 2008 by Prentice Hall3-63 Concept of Disparate Treatment Employer simply treats some people less favorably than others because of race, religion, sex, national origin, or age Most easily understood form of discrimination Common forms of disparate treatment include selection rules with racial, sexual, or other premise, prejudicial action, unequal treatment on individual basis, and different hiring standards for different groups

64. © 2008 by Prentice Hall3-64 Concept of Adverse Impact Defined in terms of selection rates Established by Uniform Guidelines Occurs if women and minorities are not hired at rate of at least 80% of best- achieving group Also called the four-fifths rule

65. © 2008 by Prentice Hall3-65 Concept of Adverse Impact (Cont.) Success rate for women and minority applicants Success rate for best-achieving group applicants Assuming adverse impact shown, employers have two avenues available if they desire to use particular selection standard. First, employer may validate a selection device by showing it is predictor of success Second avenue is bona fide occupational qualification (BFOQ) defense = Determination of adverse impact

66. © 2008 by Prentice Hall3-66 Adverse Impact Example 1 During 2007, 400 people were hired for a particular job. Of the total, 300 were white and 100 were black. There were 1,500 qualified applicants for these jobs, of whom 1,000 were white and 500 were black. Using the adverse impact formula, you have: 100/500 0.2 ________ = _____ = 66.67% 300/1,000 0.3 Thus, adverse impact exists.

67. © 2008 by Prentice Hall3-67 Adverse Impact Example 2 During 2007, assume that 300 blacks and 300 whites were hired. But there were 1,500 qualified black applicants and 1,000 qualified white applicants. Using the adverse impact formula, you have: 300/1,500 0.2 _________ = ____ = 66.67% 300/1,000 0.3 Thus, adverse impact exists.

68. © 2008 by Prentice Hall3-68 Additional Guidelines Guidelines on Sexual Harassment Guidelines on Discrimination Because of National Origin Guidelines on Discrimination Because of Religion

69. © 2008 by Prentice Hall3-69 Guidelines on Sexual Harassment Title VII generally prohibits gender discrimination in employment EEOC issued interpretative guidelines Two distinct types of sexual harassment; (1) where hostile work environment is created, and (2) when there is quid pro quo

70. © 2008 by Prentice Hall3-70 EEOC Definition of Sexual Harassment 1.When submission to such conduct is made either explicitly or implicitly a term or condition of individual’s employment 2.When submission to or rejection of such conduct by individual is used as basis for employment decisions affecting individual 3.When conduct has purpose or effect of unreasonably interfering with individual’s work performance or creating intimidating, hostile, or offensive working environment Unwelcome sexual advances, requests for sexual favors, and verbal or physical conduct of sexual nature that occur under any of following situations:

71. © 2008 by Prentice Hall3-71 Sexual Harassment Employers are liable for acts of supervisors, regardless of whether employer is aware of sexual harassment act Employer is responsible for acts of co-workers if employer knew, or should have known, about them May be liable for acts committed by nonemployees in workplace Immediate and appropriate action

72. © 2008 by Prentice Hall3-72 Meritor Savings Bank v Vinson First sexual harassment case to reach U.S. Supreme Court Ruled Title VII is not limited to discrimination with only economic or tangible effects

73. © 2008 by Prentice Hall3-73 Harris v Forklift Systems, Inc. Expanded hostile workplace concept and made it easier to win sexual harassment claims No longer does severe psychological injury have to be proved. Plaintiff only needs to show employer allowed hostile to abusive work environment to exist

74. © 2008 by Prentice Hall3-74 Oncale v Sundowner Offshore Services Held that same-sex sexual harassment may be unlawful under Title VII Does not prohibit all verbal or physical harassment in the workplace, only that which constitutes discrimination because of sex

75. © 2008 by Prentice Hall3-75 Guidelines on Discrimination Because of National Origin Discrimination on basis of national origin as denial of equal employment opportunity because of: Individual’s ancestors or place of birth Individual has physical, cultural, or linguistic characteristics of national origin group

76. © 2008 by Prentice Hall3-76 Guidelines on Discrimination Because of National Origin (Cont.) National origin protection also covers (1) marriage or association with person of specific national origin (2) membership in, or association with, organization identified with, or seeking to promote interests of national groups (3) attendance at, or participation in, schools, churches, temples, or mosques generally used by persons of national origin group (4) use of individual’s or spouse’s name that is associated with national origin group

77. © 2008 by Prentice Hall3-77 English-only Rule Courts generally ruled in employer’s favor if rule would promote safety and product quality and stop harassment Rule must be justified by a compelling business necessity

78. © 2008 by Prentice Hall3-78 Guidelines on Discrimination Because of Religion Employers have obligation to accommodate religious practices unless they can demonstrate a resulting hardship

79. © 2008 by Prentice Hall3-79 Methods for Accommodating Religious Practices Voluntary substitutes Flexible scheduling Lateral transfers Change in job assignments Union should accommodate by permitting donations

80. © 2008 by Prentice Hall3-80 Executive Order Directive issued by President, having force and effect of laws enacted by Congress

81. © 2008 by Prentice Hall3-81 Affirmative Action Many believe the concept of affirmative action got its beginning in 1948 when former president Harry S. Truman officially ended racial segregation in all branches of the military by issuing Executive Order 9981 Officially it began in 1965 when President Lyndon B. Johnson signed EO 11246

82. © 2008 by Prentice Hall3-82 Executive Order 11246 Establishes the policy of the U.S. government as providing equal opportunity in federal employment for all qualified people Prohibits discrimination in employment because of race, creed, color, or national origin Positive, continuing program in each executive department and agency

83. © 2008 by Prentice Hall3-83 Executive Order 11375 In 1968 EO 11246 modified. Changed word “creed” to “religion” and added sex discrimination to other prohibited items

84. © 2008 by Prentice Hall3-84 Affirmative Action Programs Approach developed by organizations with government contracts to demonstrate workers are employed in proportion to their representation in firm's relevant labor market

85. © 2008 by Prentice Hall3-85 Degree of Control OFCCP Will Impose Involves $10,000- $50,000 contracts. These contractors governed by equal opportunity clause If contractor (1) has 50 or more employees, (2) has contract of $50,000 or more, must develop written affirmative action program for each establishment and file annual EEO-1 report

86. © 2008 by Prentice Hall3-86 Degree of Control OFCCP Will Impose (Cont.) When contracts exceed $1 million All previously stated requirements must be met OFCCP is authorized to conduct pre- award compliance reviews

87. © 2008 by Prentice Hall3-87 What Is Included in an AAP? Policy statement has to be developed Analysis of deficiencies in the utilization of minority groups and women Conduct a utilization analysis Analyze of all major job groups Underutilization is defined as having fewer minorities or women in a particular job group than would reasonably be expected by their availability

88. © 2008 by Prentice Hall3-88 Underutilization Example If utilization analysis shows the availability of blacks for a certain job group is 30%, organization should have at least 30% black employment in that group. If actual employment is less than 30%, underutilization exists, and firm should set a goal of 30% black employment for that job group.

89. © 2008 by Prentice Hall3-89 Primary Focus Goals and timetables Annual and ultimate Annual goal is to move toward elimination of underutilization Ultimate goal is to correct all underutilization Goals should not establish inflexible quotas that must be met

90. © 2008 by Prentice Hall3-90 A Global Perspective: Not the Glass Ceiling, the Bamboo Ceiling Asian Americans are fastest-growing minority in the U.S. Why are there are so few Asian Americans at the very highest levels of U.S. companies? Most Asians share certain cultural values that are the opposite of what it takes to succeed in the corporate world

91. © 2008 by Prentice Hall3-91