1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 4 Diversity at Work

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Diversity  Managing diversity means establishing a heterogeneous workforce (including white men) to perform to its potential in an equitable work environment where no member has an advantage or disadvantage  Five major reasons diversity has become a dominant activity in managing human resources:  The shift from a manufacturing economy to a service economy  Globalization of markets  New business strategies that require more teamwork  Mergers and alliances that require different corporate cultures to work together  Changing labor market

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  The Service Economy  Service employees need to understand their customers, to anticipate and monitor their needs and expectations, and to respond sensitively and appropriately to those needs and expectations  Similarities in culture, dress, and language between service workers and customers create more efficient interactions between them and better business for the firm  The Globalization of Markets  Customers have more options available; therefore, they have more power to insist that their needs and preferences are satisfied

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  New Business Strategies that Require More Teamwork  In order to accomplish new, broadly defined goals, companies now rely on some form of team structure  Teamwork promotes flexibility, reduces operating costs, speeds responses to technological change, requires fewer job classifications, encourages better response to new worker values, and helps attract and retain top talent  Teamwork brings together employees with different knowledge and perspectives

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  Mergers and Strategic International Alliances  The ‘marriage’ of two foreign businesses with unique corporate cultures and customs makes the acceptance of diversity a must in the global market  The Changing Labor Market  The influx of more women, more immigrants, more people of color, and more older workers in the workforce in the next 25 years makes acceptance of diversity essential

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Changing Labor Market: Different Not Deficient  Steps to attaining the advantages of diversity  All employees must understand and value different races, ethnic groups, cultures, languages, religions, sexual orientations, levels of physical ability, and family structures  Skeptical managers, supervisors, and policymakers need to understand that different does not mean deficient

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Link Between Discrimination & Job Performance  Perceptions of discrimination relate to:  Tendency to feel “burned out”  Reduced willingness to take initiative on the job  Greater likelihood of planning to change jobs  What do minority employees really want?  Inclusion  Encouragement  Opportunity

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Xerox - Leading by Example  “If you don’t value diversity, you can’t manage it.” Xerox :  Supports diversity through its recognition and encouragement of a network of local and regional caucus groups (for African Americans, women, and Hispanic Americans)  Examines the backgrounds of all top executives and identifies the key positions they held at lower levels; then, sets goals for getting minorities and women into these jobs  Is transforming its workforce from male-dominated to fully diverse

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Pacific Bell - Leading by Example  Pacific Bell:  Developed a new recruitment strategy to attract minorities  Established an internship program for third-year college students  Provided 6-day off-site training programs for existing minority employees designed to develop their skills and provide a safe place for them to talk about sensitive issues such as covert racism and prejudice

11. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. IBM - Leading by Example  IBM’s Family-Friendly Policies  Advances women through networking groups and leadership training initiatives  Hosts an internal conference--Women in Technology  Provides leave for childbirth - mothers and fathers get three years of job-guaranteed time off with benefits  Offers near-site child care centers

12. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Levi Strauss & Co. - Leading by Example  It is one of the most ethnically and culturally diverse companies in the U.S., if not the world, with 58% of its U.S. employees belonging to a minority group  Sponsors “Valuing Diversity” education programs  Its ads encourage minorities and women to apply for job openings  Supports in-house networking groups of African Americans, Hispanics, Asian-Pacific Islanders, women, lesbians, and gay men

13. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Maximizing the Potential of a Racially & Ethnically Diverse Workforce  Link diversity to every business strategy  Focus on bringing in the best talent, not on meeting numeric goals  Establish mentoring programs among employees of same and different races  Hold managers accountable for meeting diversity goals  Develop career plans for employees as part of performance reviews  Promote minorities to decision-making positions, not just to staff jobs  Diversify the company’s board of directors

14. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Women in the Workforce  “Women’s issues” as business issues  Women are not less committed employees; three-quarters of professional women who quit large companies do so because of lack of career progress; only 7% left to stay at home with their children  Companies not offering child care and flexibility in work scheduling suffer along with their deprived workers  Accommodating women in the workforce is not just “the right thing to do,” but the economically smart thing to do

15. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Women in the Workforce  Progressive companies are providing women with opportunities not previously available to them:  Alternate career paths  Extended leave  Flexible scheduling  Flextime  Job sharing  Teleworking

16. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Five Generations of Workers  Swing generation – born roughly between 1910 and 1929  Most, but not, all are retired  Silent generation – born between 1930 and 1945  Influenced by the swing generation  Many hold positions of power  Baby-boom generation – born between 1946 and 1964  Believe in rights to privacy, due process, and freedom of speech in the workplace  Believe the best should be rewarded without regard to age, gender, race, position, or seniority  Few leave jobs voluntarily

17. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Five Generations of Workers  Generation X – born between 1965 and 1977  About 1/3 of the workforce  Tend to be independent, cynical, and do not expect the security of long-term employment; also tend to be practical, focused, and future oriented  Generation Y – born between 1977 and 1997  Includes offspring of the baby boomers plus an influx of immigrants throughout the 1990s  Grew up around more sophisticated technologies  Good at multitasking; downfalls include short attention spans, the constant need for stimulation or entertainment, and the blurring of the lines between work and leisure time while on the job

18. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Integrating Older Workers Into the Workforce  Six priorities to consider to maximize the use of older workers:  Age and experience profile  Job performance requirements  Performance management  Workforce interest surveys  Training and counseling  Structure of jobs

19. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sexual Orientation & Nondiscrimination Policies  Inclusive new policies and benefits for gay and lesbian employees:  More than 75 percent of Fortune 1000 firms have elected to add the words “sexual orientation” to their nondiscrimination policies  1 in 8 of all firms – 1 in 4 with more than 5,000 workers – offer domestic partner benefits

20. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Internal Organizational Environments of the Future  To prepare for coming changes:  Develop an age, gender, and race/ethnic profile of the present workforce  Carefully assess job performance requirements  Check for possible unfairness in performance management  Use interest surveys to determine what current workers want  Provide opportunities for employee training and career counseling  Explore with workers alternatives to traditional work patterns