1. Managing Diversity and Inclusion
Chapter Nine
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2. Learning Objectives
LO 1 Describe how changes in the U.S. workforce make diversity a critical organizational and managerial issue LO 2 Explain how diversity, if well managed, can give organizations a competitive edge LO 3 Identify challenges associated with managing a diverse workforce LO 4 Define monolithic, pluralistic, and multicultural organizations LO 5 List steps managers and their organizations can take to cultivate diversity LO 6 Summarize the skills and knowledge about cultural differences needed to manage globally

3. Managing Diversity Affirmative action
Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.
Legislation has not completely solved the problem of discrimination - women and minorities still face challenges in upward mobility.

4. Affirmative Action Programs
The purpose of affirmative action programs is to…
compensate for past discrimination
prevent ongoing discrimination
provide equal opportunities to all, regardless of race, color, religion, gender, or national origin
The purpose of affirmative action programs is to compensate for past discrimination, which was widespread when legislation was introduced in the 1960s. Its purpose was to prevent ongoing discrimination and to provide equal opportunities to all, regardless of race, color, religion, gender, or national origin.
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5. Diversity
a variety of demographic, cultural, and personal differences among an organization’s employees and customers

6. Managing Diversity Managing diversity
Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage.

7. General Purpose of Diversity Programs
To create a positive work environment where…
no one is advantaged or disadvantaged
“we” is everyone.
everyone can do his or her best work.
differences are respected and not ignored.
everyone feels comfortable.
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8. Diversity: A Brief History
Most immigrants to the U.S. from late 1800s to early 1900s were non-English speaking from Italy, Poland, Ireland, and Russia
It was considered poor business practice for white Protestant-dominated insurance companies to hire Irish, Italians, Catholics, or Jews
It was not until the 1960s that the struggle for acceptance by various ethnic and religious groups had on the whole succeeded

9. Women and non-white minorities faced particularly difficult challenges, which lasted throughout the 1960s.
Today more than half of the U.S. workforce consists of people other than white, U.S. born males. Two-thirds of all global migration is into the U.S.
Today’s immigrants are willing to be part of an integrated team, but they no longer are willing to sacrifice cultural identities to get ahead.

10. Diversity: A Brief History
When the Women’s Rights Movement was launched in Seneca Falls in 1848, most occupations, colleges, and professional schools were off limits to women
Women could not vote and lost all property rights once they were married
Until the Civil Rights Act of 1964, women:
Were excluded from certain jobs
Needed a male cosigner for a bank loan
Were not issued credit cards if they were married

11. Diversity: A Brief History
The most difficult struggle faced America’s nonwhite minorities
Racial segregation remained for 100 years after the end of the civil war
Blacks suffered voting right suppression and discrimination in education, employment, and housing
Brown v. Board of Education (1954) declared segregation unconstitutional setting the stage for the Civil Rights Act of 1964

12. Components of Workforce Diversity
Figure 9.1

13. Components of Workforce Diversity
The Size of the Workforce – expected to reach 158 million by 2010.
The expansion of diversity programs in U.S. companies
The Workers of the Future
white, American-born males still constitute 38 percent of the workforce but account for 15 percent of the net growth.
Eighty-five percent of workforce growth is by U.S. born white females, immigrants, and minorities.

14. Question
A(n) ___________ is an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy.
Organization chart
Glass ceiling
Glass limit
Personnel limit
The correct answer is b – glass ceiling. See next slide.

15. Gender Issues Women make up 47 percent of the workforce
99 out of 100 women will work for pay at some point in their lives
About 60% of all marriages are dual-earner marriages.
1 out of every 5 married women who work outside the home earns more than her husband.

16. Gender Issues Glass ceiling
an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy

17. Gender Issues Sexual harassment
Conduct of a sexual nature that has negative consequences for employment.

18. Sexual Harassment Quid pro quo harassment Hostile environment
Submission to or rejection of sexual conduct is used as a basis for employment decisions
Hostile environment
Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment

19. Common Managerial Mistakes in Sexual Harassment Laws
Assuming:
That the victim and harasser must be of the opposite sex
That harassment can only occur between coworkers or supervisors and subordinates
That only victims can file complaints
What common mistakes do managers make when it comes to sexual harassment laws? First, many assume that the victim and harasser must be of the opposite sex. According to the courts, they do not. Sexual harassment can also occur between people of the same sex. Second, it is assumed that sexual harassment can occur only between co-workers or between supervisors and subordinates. Not so. Sexual harassers can also include agents of employers, such as consultants, and can even include nonemployees. The key is not employee status but whether the harassment takes place while conducting company business. Third, it is often assumed that only people who have themselves been harassed can file complaints or lawsuits. In fact, especially in hostile work environments, anyone affected by offensive conduct can file a complaint or lawsuit.
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20. Company Responsibilities
Respond immediately to make sure sexual harassment laws are followed
Write a clear, understandable sexual harassment policy
Establish clear reporting procedures
Be in compliance with federal, state, and local sexual harassment laws
The above list describes what companies should do to make sure that sexual harassment laws are followed and not violated.
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21. Top 10 Companies for Executive Women
Abbott Labs
Aetna
American Express
Fleishman-Hillard
General Mills
IBM
Johnson & Johnson
Marriott International
Office Depot
Wellpoint

22. Basic Components of an Effective Sexual Harassment Policy

23. Minorities and Immigrants
Black, Asian, and Hispanic workers hold more than one of every four jobs
Asian and Hispanic workforces are growing the fastest, followed by the African-American workforce
Three in 10 college enrollees are people of color.
By 2020, most of California’s entry-level workers will be Hispanic

24. Minorities and Immigrants
English has become the second language for much of the population in California, Texas, and Florida.
The younger Americans are, the more likely they are to be persons of color
Foreign-born workers make up more than 16 percent of the U.S. civilian labor force
One in 66 people in the United States identifies himself or herself as multiracial
Banks and other service organizations find that by hiring a diverse mix of employees, and teaching them to collaborate with each other, they are better able to serve all of their potential customers.

25. Percentage of the projected U. S
Percentage of the projected U.S. labor force by race and Hispanic origin (2010 to 2050)
Exhibit 9.3

26. Successful immigrant entrepreneurs in the United States
Exhibit 9.2

27. Mentally and Physically Disabled People
The largest unemployed minority in the U.S.
The share of the population with a disability is growing
Number of people with disabilities increased by 25% in the last decade, but only 32% of Americans with disabilities, ages are working.
66% of people with disabilities who are unemployed would rather be working
Assistive technologies make it easier for companies to comply with the Americans with Disabilities Act

28. Mentally and Physically Disabled People
Employers find that disabled employees are:
more dependable than typical employees
miss fewer days of work
exhibit lower turnover.
Tax credits are available to companies that hire disabled workers.

29. The Age of the Workforce
One in three workers today is over age 45
By 2006, the median age of America’s workforce will rise up to 40.6, up from 30 in the early 1960s
68% of workers between the ages of 50 and 70 plan to work in retirement or never retire.
Some companies are offering special programs to attract and retain older workers.

30. Tomorrow’s Workers will be More Varied than Ever
By 2018, it is estimated that one out of three workers will be aged 55 or older
Entry-level workers for some positions will be in short supply
70% of workers between intend to work in retirement
To prevent an exodus of talent, employers need strategies to help retain and attract skilled older workers
Employers must also compete for talented young workers

31. Well-Managed Diversity and Inclusion: A Competitive Advantage
Ability to Attract and Retain
Motivated Employees
Better Perspective on a Differentiated Market
Ability to Leverage Creativity and Innovation in Problem Solving
Enhancement of Organizational Flexibility

32. A Diverse and Inclusive Workforce: Challenging to Manage
Unexamined Assumptions
Lower Cohesiveness
Communication Problems
Stereotyping
Mistrust and Tension

33. Misleading and More Accurate Assumptions about Diversity
Exhibit 9.5

34. Multicultural organizations
There are three basic types of organizations with regard to diversity:
Monolithic organization is an organization that has a low degree of structural integration – employing few women, minorities, or other groups that differ from the majority – and thus has a highly homogeneous employee population.
Pluralistic organization is an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds.
Multicultural organization is an organization that values cultural diversity and seeks to utilize and encourage it.

35. How Organizations Can Cultivate a Diverse Workforce
Secure top managers’ commitment
Incorporate the organization’s attitude toward diversity into the corporate mission statement and into strategic plans and objectives.
Allocate adequate funding to ensure the success of diversity efforts.
Set an example for organization members by participating in diversity programs and making participation mandatory for all managers.
Conduct an organizational assessment
Improves diversity by evaluating workforce, culture, policies, and practices in areas such as recruitment, promotions, benefits, and compensation.

36. Attract a Diverse Group of Qualified Employees
Recruitment
Accommodating Work and Family Needs
Alternative Work Arrangements

37. Train Employees to Understand and Work with Diversity
Awareness building is designed to increase awareness of the meaning and importance of valuing diversity.
Skill building is designed to allow all employees and managers to develop the skills they need to deal effectively with one another and with customers in a diverse environment.

38. Train Employees to Understand and Work with Diversity
Guidelines for diversity training
Position training in your broad diversity strategy.
Do thorough needs analysis.
Distinguish between education and training.
Use a participative design process.
Test the training thoroughly before rollout.
Incorporate diversity programs into the core-training curriculum.

39. Retain Talented Employees
Support Groups
Mentoring
Career Development and Promotions
System Accommodation
Accountability

40. Retain Talented Employees
Mentors
Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.

41. Managing Across Borders
When establishing operations overseas, headquarter executives have a choice between sending:
Expatriate
Parent-company nationals who are sent to work at a foreign subsidiary
cost
personal security
Stress
Host-country nationals
availability
familiarity with language and culture
cost less
Third-country nationals
can soften political tensions
‘compromise solution’ between expatriate and host country national

42. Ways to Prevent Failed Global Assignments
Exhibit 9.6

43. Global Managers need Cross-Cultural Skills
Skills and knowledge include:
a. multidimensional perspective
b. proficiency in line management and decision making
c. having resourcefulness
d. cultural adaptability
e. sensitivity
f. team-building skills
g. mental maturity

44. How to Land an International Assignment
Let them know
Study a foreign language
Volunteer to be an “ambassador”

45. Managing Across Borders
Inpatriate
a foreign national brought in to work at the parent company
Ethnocentrism
the tendency to judge others by the standards of one’s group or culture, which are seen as superior

46. Managing Across Borders
Culture shock
the disorientation and stress associated with being in a foreign environment
Geert Hoftede’s dimensions of cultural differences:
power distance
individualism/collectivism
uncertainty avoidance
masculinity/femininity

47. When working with foreign nationals, it is important to explain U. S
When working with foreign nationals, it is important to explain U.S. cultural norms with regard to:
Holding meetings
Work schedules
Fast-trackers
Feedback

48. International Management introduces Complex Ethical Challenges
General Dynamics and United Technologies have established codes of conduct for international business.
Four steps for establishing and reinforcing these codes might include the following:
Vigorously oversee the corporate ethics and culture
Ensure that the company has articulated its values.
Let business partners know the standards
Include character, integrity, decision-making, and other values information in performance reviews and succession-management processes.
Most people embrace five core values, regardless of religion or nationality:
compassion
fairness
honesty
responsibility
respect for others.

49. Develop a list of stereotypes that they have heard about Americans
Answer the following questions:
How do you think these stereotypes developed?
How do there stereotypes influence communication between employees in the U.S.and their counterparts in other countries?

51. Video: BMW What is the “silver tsunami”?
What changes did BMW make to its assembly line to help older workers?
What impact did these changes have on production?