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WORKPLACE DIVERSITY AND AFFIRMATIVE ACTION
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Chapter Objectives Discuss the projected future diverse workforce
Define and discuss diversity and diversity management Discuss the significant U.S. Supreme Court decisions that have had an impact on equal employment opportunity. Explain affirmative action programs and how it works
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The Workforce FACTS By 2010 the workforce will increase to 158 million from 141 million 4 out of 10 people entering the workforce between 1998 – 2008 will be member of a minority group By 2010 minority groups will account for the major share of the workforce
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The Workforce FACTS Hispanics will makeup the greater part of the workforce The number of women entering the workforce will increase while men entering will decrease Youth labor force, age 16 to 24 will increase
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The Workforce FACTS Age group 25 to 54 will decline by 2010
Workers 55 and older will increase by 2010 By 2010 the median age will be 40 and women will make up the workforce
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Diversity in the Workforce
What will be key for companies? Develop patience Open-mindedness Acceptance Cultural Awareness
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Diversity and Diversity Management
Diversity: What does it mean? Any perceived difference among people Diversity Management: What does it mean? Ensuring that the right programs are in place to promote diversity Diversity—Any perceived difference among people: age, race, religion, functional specialty, profession, sexual orientation, geographic origin, lifestyle, tenure with the organization or position, and any other perceived difference. Diversity management—Ensuring factors are in place to provide for and encourage the continued development of a diverse workforce by melding these actual and perceived differences among workers to achieve maximum productivity
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Diversity Management INVOLVES
Creating a supportive culture where all employees can be effective. Top management support diversity goals and include them in the business strategy Fostering a culture that values individuals and their needs and contributions
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Managing the 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 Single Parents and Working Mothers: Number of single-parent households in the United States is growing. Although the divorce rate peaked in the early 1980’s, the number of divorces remains around fifty percent. Often, one or more children are involved. Of course, there are always widows and widowers who have children, as well, and there are some men and women who choose to raise children outside of wedlock. * Women in Business: Numerous factors have contributed to the growth and development of the U.S. labor force. However, nothing has been more prominent than the rise in the number of women in the labor force. Therefore, the base of building a diverse workforce rests on an employer’s ability to attract and retain females. * Dual-Career Families: The increasing number of dual-career families, where both the husband and wife have jobs and family responsibilities, presents both challenges and opportunities for organizations. * Workers of Color: Workers of color (including Hispanics, African Americans, and Asians) are often stereotyped. At times, they encounter misunderstandings and expectations based on ethnic or cultural differences. Members of ethnic or racial groups are socialized within their particular culture. * Older Workers: Population of the United States is growing older and will have a tremendous impact on workplace issues, because of increasing life longevity and delaying of retirement. * People with Disabilities: Common disabilities include limited hearing or sight, limited mobility, mental or emotional deficiencies, and various nerve disorders. Such disabilities limit the amount or kind of work a person can do or make its achievement unusually difficult. In jobs for which they are qualified, however, disabled workers do as well as the unimpaired in terms of productivity, attendance, and average tenure. * Immigrants: Human resource managers can place these individuals in jobs appropriate to their skills, with excellent results for the organization. As corporations employ more foreign nationals in this country, managers must work to understand the different cultures of their employees. * Young Persons with Limited Education or Skills: Many of these young adults and teenagers have poor work habits; they tend to be tardy or absent more often than experienced or better-educated workers. Although the negative attributes of these workers at times seem to outweigh the positive ones, they are a permanent part of the workforce. * Educational Level of Employees: The United States is becoming a bipolar country with regard to education, with a growing number of very educated people on one side and an alarming increase in the illiteracy rate on the other. These functionally illiterate people want to join the workforce.
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Single Parents and Working Mothers
70% of mothers work Many marriages end in divorce Widows and widowers who have children Need alternative child-care arrangements Child-care services and workplace flexibility needed
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Women in Business 66 million women in the workforce as 2000
11.9% of corporate officers Number in entry- and mid-level managerial positions has risen Over 9 million women-owned businesses Increasing number of nontraditional households
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Dual Career Families Represent 63% of marriages have children
Both spouses have jobs and family responsibilities. Challenges and opportunities Revised nepotism policy
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Dual Career Families (Continued)
Assist the spouse of transferred employee Assist in finding position for spouse Cafeteria benefits plans Flexibility in their workplaces and careers
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Workers of Color Hispanics, African American Americans and Asians
Often experience stereotypes Often encounter misunderstandings and expectations
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Older Workers Population is growing --65 and older
Long-term labor shortage is developing Early retirement is about to reverse itself Needs and interests may change May require retraining
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Persons with Disabilities
Limits the amount or kind of work a 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 Managers have serious barrier is bias, or prejudice Manager need to treat them the same as others
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Immigrants One million legal immigrants per year
Newer immigrants require time to adapt Managers must work to understand the different cultures and languages.
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Young Persons with Limited Education or Skills
Many thousands of young, unskilled workers are hired Poor work habits or Tardy Some possess good qualities Can do many jobs well Jobs can be de-skilled.
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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
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Affirmative Action
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Executive Order 11246 Executive order (EO) - Directive issued by the President, having force and effect of laws enacted by Congress Executive Order Every executive department and agency that administers a program involving federal financial assistance must adhere to policy of nondiscrimination
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Executive Order 11246 (Continued)
Affirmative action stipulated by EO 11246 Requires employers to take positive steps to ensure employment of applicants and treatment of employees during employment without regard to race, creed, color, or national origin. Executive Orders (EOs) are directives issued by the president that have the force and effect of laws enacted by Congress. On September 24, 1965, former President Lyndon B. Johnson signed into law EEO This EO made it the policy of the government of the United States to provide equal opportunity in federal employment for all qualified persons. It prohibited discrimination in employment because of race, creed, color, or national origin. A major provision of EO was that every executive department and agency that administers a program involving federal financial assistance will require adherence to a policy of nondiscrimination in employment as a condition for the approval of a grant, contract, loan, insurance, or guarantee. In 1968, EO 11375, which changed the word creed to religion and added sex discrimination to the other prohibited items, amended EO
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Affirmative Action Court Cases
Grutter v Bollinger – colleges and universities have “compelling interest” in achieving diverse campuses Gratz v Bollinger – in trying to achieve diversity, colleges and universities cannot use point systems that blindly give extra credit to minority applicants University of California Regents v Bakke - the Court reaffirmed that race may be taken into account in admission decisions. Grutter v Bollinger—Supreme Court appeared to support the Bakke decision. Court ruled in a 5-4 decision that colleges and universities have a “compelling interest” in achieving diverse campuses. Gratz v Bollinger—Court, in a 6-3 decision, said that in trying to achieve diversity, colleges and universities cannot use point systems that blindly give extra credit to minority applicants. University of California Regents v Bakke: Allen Bakke, a white male, was denied admission to the medical school even though he scored higher on the admission criteria than some minority members who were admitted. The Supreme Court ruled 5-4 in Bakke’s favor. As a result, Bakke was admitted to the university and in 1982 received his degree. But, at the same time, the Court reaffirmed that race may be taken into account in admission decisions.
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Affirmative Action Programs
Set of specific actions taken by an Organization with government contracts to proactively remove unintended barriers to achieve equal opportunity
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EEO vs. AAP Equal Employment Opportunity
Aims to ensure that anyone under the protected class has an equal chance for a job based on their qualifications. Affirmative Action Program Goes beyond EEO by requiring employers to take action on eliminating barriers to hire and promote members of the protected Class.
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Affirmative Action Programs
MANDATED BY OFCCP: Government contractor Lose a court discrimination case Signed a consent decree Voluntarily attempting to implement EEO principles Office of Federal Contract Compliance Programs (OFCCP) ---is responsible for ensuring that contractors doing business with the Federal government do not discriminate and take affirmative action. Are a government contractor Levels of control: 1.)Contracts that exceed $10,000 but less than $50,000, 2.) 50 or more employees--contract of $50,000 or more, 3.) contracts exceed 1 million or more Lose a court discrimination case & signed a consent decree When a company has a court order to engage in certain HRM actions; for a specific period of time, balance its workforce and the RLM Voluntarily attempting to implement EEO principles Voluntarily AAP, the challenge comes when companies bend over backwards to hire minorities through providing preferential treatment to specific groups to meet goals or quotas.
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Affirmative Action Programs
Who is accountable? First level of control Exceed $10,000 but less than $50,000 Second level of control Company has 50 or more employees Exceed $50,000 or more 12 months period totaling $50,000 or more Financial Institution that have government funds deposit Third level of control Contractor has contracts that exceed $1 million
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Affirmative Action Programs
The Process Develop a written affirmative action program File EEO-1 Identify and analysis of problem areas
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Affirmative Action Programs
Factors for the Pre-award Past EEO performance of the contractor and indications of underutilization Volume and nature of complaints filed Whether the contractor is in growth industry Whether resources are available to conduct the review Employment opportunities are likely to results from the contract in issue
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Affirmative Action Programs
The Violation Secure compliance through persuasion Serve a written notice and the propose plan for correction Contractor has 30 days to respond State the CEO commitment The intention to recruit, hire, train and promote Guarantee that all Human Resources action involve the five functions ID and analysis of problem areas
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Affirmative Action Programs
The Purpose Contractor maintains nondiscriminatory hiring practices Hold contractor accountable for the goals of hiring, firing and promoting Show employees are being treated fairly regardless of race, gender, religion, etc.
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Affirmative Action Programs
What is in the Plan? State the CEO commitment The intention to recruit, hire, train and promote Guarantee that all Human Resources action involve the five functions ID and analysis of problem areas Make a workforce analysis Analysis of major job groups Explanation of underutilized minorities or women
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Affirmative Action Programs
Goals for the Plan Annual Work towards elimination of underutilization Ultimate Correct all underutilization
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Diversity and Affirmative Action Discussion
Questions: When is diversity not the right thing? Why? When is diversity is appropriate? Why?
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