1. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 CHAPTER 12 CHAPTER 12 Management 3rd Edition Chuck Williams Managing Individuals and a Diverse Work Force Prepared by Deborah Baker Texas Christian University

2. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 CHAPTER 12 What Would You Do? You are the new CEO of Advantica… How do you create a diversity plan and make changes throughout the company? What steps could you take to communicate to customers that Denny’s will change?   Denny’s has paid $54 million in damages due to customer discrimination   Advantica, which now owns Denny’s, wants to change the culture

3. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 CHAPTER 12 Predicted U.S. Population, by Race, 2005-2070

4. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 CHAPTER 12 Diversity and Why It Matters After reading the next section, you should be able to: 1. 1.describe diversity and why it matters.

5. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 CHAPTER 12 Diversity: Differences That Matter 1 Diversity Is Not Affirmative Action Diversity Is Not Affirmative Action How to Build a Business Case For Diversity How to Build a Business Case For Diversity

6. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 CHAPTER 12 DiversityAffirmative Action Diversity Is Not Affirmative Action 1.1  May exist without a program  Broad focus  Not legally based  Create a positive work environment  Generally accepted   A purposeful, established program   Narrow focus   Legal requirement   Compensate for past discrimination   Controversial

7. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 CHAPTER 12 To create a positive work environment where General Purpose of Diversity Programs 1.1   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. Adapted from Exhibit 12.2

8. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 CHAPTER 12 Diversity Makes Good Business Sense 1.2 Cost Savings Attracting and Retaining Talent Driving Business Growth

9. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 CHAPTER 12 Diversity Makes Good Business Sense 1.2 Cost Savings   Reduces turnover   Decreases absenteeism   Avoids expensive lawsuits

10. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 CHAPTER 12 Diversity Makes Good Business Sense 1.2 Attracting and Retaining Talent   Attracts better and more diverse job applicants   Have higher stock market performance   Encourages workers to stay

11. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 CHAPTER 12 Diversity Makes Good Business Sense 1.2 Driving Business Growth   Improves understanding of the marketplace   Improves quality of problem solving

12. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 CHAPTER 12 Been There Done That Diversity at Longo Toyota Ken Rankin, HR manager at Longo Toyota  Longo Toyota retains 90 percent of its diverse staff  Diversity would not happen if the job fell solely to HR  HR hires the most qualified for the position  Diversity adds talent and is a strength

13. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 CHAPTER 12 Diversity and Individual Differences After reading the next two sections, you should be able to: 2. 2.understand the special challenges that the dimensions of surface-level diversity poses for managers. 3. 3.explain how the dimensions of deep-level diversity affect individual behavior and interactions in the workplace.

14. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 CHAPTER 12 Surface-Level Diversity Age Race/EthnicityPhysicalCapabilities Gender Deep-Level Diversity PersonalityAttitudes Values/Beliefs Adapted from Exhibit 12.3 Surface and Deep-Level Diversity

15. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 CHAPTER 12 Surface-Level Diversity 2 Race/Ethnicity Mental or Physical Disabilities Mental or Physical Disabilities AgeGender

16. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 CHAPTER 12 Age 2.1  Treating people differently because of their age  Performance does not decline with age  Older employees show better judgment, and are less likely to quit, show up late, or be absent  Age discrimination is more pervasive than managers think

17. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 CHAPTER 12 Gender 2.2  Treating people differently because of their gender  Glass ceiling  invisible barrier that keeps women and minorities from advancing to the top of the organization  Can be diminished by:  mentoring  stopping unintentional behavior

18. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 CHAPTER 12 Gender 2.2

19. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 CHAPTER 12 Gender 2.2

20. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 CHAPTER 12 Race / Ethnicity 2.3  Treating people differently because of their race or ethnicity  Employment disparities do exist  Legislation has lessened the problem  Reduce by:  improve selection and promotion procedures  train managers

21. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 21 CHAPTER 12 Mental or Physical Disabilities 2.4  Disability is a mental or physical impairment that substantially limits one or more major life activities  Disability discrimination means treating people differently because of their disabilities  Reduce by:  educating to address incorrect stereotypes  provide assistive technology  recruit qualified workers with disabilities http://www.usdoj.gov/crt/ada/adahom1.htm

22. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 CHAPTER 12 Reasonable Accommodations for Disabled Workers 2.4 Adapted from Exhibit 12.6 Physical changes Quieter workspace Training and other written materials TTYs for use with telephones, computer hardware and software Time off for treatment

23. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 CHAPTER 12 Deep-Level Diversity 3 “Big Five” Dimensions of Personality Other Work-Related Aspects of Personality

24. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 CHAPTER 12 Big Five Dimensions of Personality 3.1 Extraversion EmotionalStability Openness to Experience Conscientiousness Agreeableness

25. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 25 CHAPTER 12 What Really Works Conscientiousness 3.1 Motivational Effort 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success71% Job Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success66%

26. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 26 CHAPTER 12 Work-Related Personality Dimensions 3.2 Authoritarianism Machiavellian Tendencies Type A/B Personality Locus of Control Positive / Negative Affectivity

27. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 27 CHAPTER 12 Work-Related Personality Dimensions 3.2  Authoritarianism  the extent to which an individual believes there should be power and status differences  Machiavellianism  believe that virtually any type of behavior is acceptable if it leads to goal accomplishment

28. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 28 CHAPTER 12 Work-Related Personality Dimensions 3.2  Type A/B personality dimension  the extent to which people tend toward impatience, hurriedness, and hostility  Type A personalities  hard driving, competitive, perfectionist, angry, unable to relax  Type B personalities  Easygoing, patient, able to relax, engage in leisure activities

29. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 29 CHAPTER 12 Work-Related Personality Dimensions 3.2  Locus of control: the degree to which people believe that their actions influence what happens to them  Internal locus of control  What happens to you is under your control  External locus of control  What happens to you is beyond your control

30. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 30 CHAPTER 12 Work-Related Personality Dimensions 3.2  Affectivity: the stable tendency to experience positive or negative moods and to react in a pos  Positive affectivity  consistently focusing on the positive aspects  Negative affectivity  consistently focusing on the negative aspects  Mood linkage  a phenomenon where one worker’s negativity spreads to others

31. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 31 CHAPTER 12 How Can Diversity Be Managed? After reading this section, you should be able to: 4. 4.explain the basic principles and practices that can be used to manage diversity.

32. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 32 CHAPTER 12 Managing Diversity 4 Different Diversity Paradigms Diversity Training and Practices Diversity Principles

33. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 33 CHAPTER 12 Diversity Paradigms 4.1 Discrimination and Fairness Discrimination and Fairness Access and Legitimacy Access and Legitimacy Learning And Effectiveness Learning And Effectiveness Acceptance and celebration of differences Integrating deep-level differences into organization Equal opportunity Fair treatment Recruitment of minorities Strict compliance with laws Equal opportunity Fair treatment Recruitment of minorities Strict compliance with laws DIVERSITY PARADIGM FOCUS

34. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 34 CHAPTER 12 Organizational Plurality A work environment where:  All members are empowered to contribute in a way that maximizes the benefits to the organization, customers, themselves  The individuality of each member is respected by not segmenting or polarizing people based on their membership in a group 4.1

35. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 35 CHAPTER 12 Benefits of the Learning and Effectiveness Diversity Paradigm 4.1 Value common ground Makes a distinction between individual and group differences Less likely to encounter conflict, backlash, and divisiveness Focuses on bringing different talent and perspectives together

36. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 36 CHAPTER 12 Diversity Principles 4.2 1.Carefully and faithfully follow and enforce all equal employment opportunity laws 2.Treat group differences as important, but not special 3.Tailor opportunities to individuals, not groups 4.Reexamine, but maintain, high standards 5.Solicit negative and positive feedback 6.Set high but realistic goals http://www.eeoc.gov

37. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 37 CHAPTER 12 Diversity Training and Practices 4.3 TrainingPractices  Awareness Training  Skills-Based Diversity Training   Diversity Audits   Diversity Pairing   Minority Experiences

38. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 38 CHAPTER 12 What Would You Do—II? If you were the CEO of Wal-Mart…  Wal-Mart is facing more than 5,000 lawsuits  Seven female employees have claimed gender discrimination  Data shows that Wal-Mart has fewer female managers than its competitors had in 1975  There is clear policy on workplace discrimination Do you modify the policy? If so, how? How are you going to ensure that managers at 3,200 stores are compliant?