1. Managing Diverse Employees In a Multicultural Environment McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter five

2. 5-2 Learning Objectives 1.Discuss the increasing diversity of the workforce and of the organizational environment. 2.Explain why the effective management of diversity is an ethical, legal, and a business imperative 3.Discuss how perception can result in unfair treatment. 4.List the steps managers can take to effectively manage diversity. 5.Identify the two major forms of sexual harassment and how they can be eliminated.

3. Diversity in the Workplace Diversity – inclusion of people of varying… –Gender, Religion, Nationality, Ethnicity, Age, Socioeconomic status, Sexual orientation, or Physical Ability Q. What are some reasons why diversity can be beneficial to an organization? (refresher) McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

4. Reasons for Creating a Diverse Workforce Obtaining more ideas = better ideas Understanding customer wants and needs (“mirroring”) Attracting top talent Retaining top talent – employees feel valued and respected Securing the best person for each position Minimizing the risk of litigation and bad Publicity It’s the ethical thing to do McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

5. 5-5 The Ethical Imperative to Manage Diversity Effectively Distributive Justice –A moral principle calling for the distribution of pay raises, promotions, job titles, interesting job assignments, office space, and other organizational resources to be based on meaningful contribution that individuals have made and not personal characteristics over which they have no control.

6. Title VII of the Civil Rights Act of 1964 -- Amended 1972 The law with the greatest impact on Mgmt Applies to companies with 15+ employees and all government agencies & colleges Title VII prohibits discrimination in:  hiring  compensation  terms, conditions or privileges of employment Created the Equal Employment Opportunity Commission (EEOC) assigning them enforcement of Title VII

7. Title VII: It is Illegal for an Employer to Discriminate Based Upon… Race Color Gender Religion National Origin

8. 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+ employees and all government agencies

9. Pregnancy Discrimination Act of 1978 Amendment to Title VII of the Civil Rights Act Covers pregnancy, childbirth, or related medical conditions Basically, pregnant women need to be treated equally as applicants and employees

10. Americans with Disabilities Act (ADA) Prohibits discrimination against qualified individuals with disabilities – anyone with a mental or physical impairment that substantially impacts one or more major life activities. Doesn’t apply if impairment is correctable Does not include alternate lifestyles, gambling, pyromania, or illegal drug use Also protects people with a relationship with a disabled person who is discriminated against Prohibits discrimination in all employment practices: Selection, promotions, compensating, etc. Covers all employers with 15+ employees

11. Americans with Disabilities Act (ADA) Companies are required to make reasonable accommodation for individuals with disabilities: – redesigning a job – modifying schedules – modifying equipment Q. As a struggling small business owner, how would you feel about spending $10-$100k to renovate your building to accommodate a disabled employee?

12. The Family and Medical Leave Act of 1993 Employees in organizations employing 50 or more workers can take up to 12 weeks unpaid leave each year for  Childbirth  Adoption  Own illness or illness of a family member Employees must meet eligibility requirements to be covered. Employers must meet certain communication requirements under the Act.

13. 5-13 Major EEO Laws Insert Table 5.1

14. The Intent to Discriminate Is it still discrimination if there was no intent to discriminate? According to notion of “Disparate Impact”, employers are guilty of discrimination in the absence of any intent when the effects are the same as if there had been an intent to discriminate Ex: recruiting solely by word-of-mouth

15. 2 Defenses to EEO Discrimination Charges 1. Bona fide occupational qualifications (BFOQ’s) – It is okay to discriminate if the action is essential to the normal operation of the business. The burden of proof falls on the employer Q. Can you think of any jobs where discrimination is essential for a company?

16. 2 Defenses to EEO Discrimination Charges 2. Seniority Systems –Decisions that adversely affect protected group members may be permissible if it’s based on well-established and consistently applied seniority systems

17. 5-17 Workforce Diversity: Beyond the Law Women in the Work Place –U.S. workforce is 46% percent female –Women’s median weekly earnings are $572 compared to $714 for men and they hold only 16% of corporate officer positions – The glass ceiling still exists

18. 5-18 Weekly Salaries by Sex and Occupation Insert table 5.3

19. 5-19 Workforce Diversity: Beyond the Law Accommodation for Religious Beliefs –Scheduling of critical meetings –Providing flexible time off for holy days –Posting holy days for different religions on the company calendar

20. 5-20 Workforce Diversity: Beyond the Law Socioeconomic diversity requires that managers be sensitive and responsive to the needs and concerns of individuals who might not be as well off as themselves or the employee’s co-workers

21. 5-21 Workforce Diversity: Beyond the Law Sexual Orientation Issues –Employment and workplace discrimination –Provision of same-sex partner benefits

22. Summary of Discrimination (or not) 1.Basis of Gender  Male vs. Female is protected  Pregnancy is protected similarly, and employers need to go to great lengths to accommodate. If a significant hardship is created, accommodation is not required  Marital status and sexual orientation is not protected under Title VII 2.Religion  Employer must try to reasonably accommodate from a cost and operation standpoint

23. Forms of Discrimination 3.National Origin / Race / Color  Requiring fluency or U.S. citizenship is allowed if the requirement is job-related  No other exceptions are allowed 4.Age  Employers perceive benefits in favoring younger employees: Up-to-date skills, creativity, lower salaries, lower benefit costs, and company image  Only allowance is when there is a BFOQ 5.Disability  Employers must go to great lengths to reasonably accommodate as long as a hardship on the business isn’t created

24. Affirmative Action –Based upon the premise in 1972 that white males made up the majority of workers as a result of discriminatory practices –Minorities should be hired to correct past injustices Involves: –analyzing current work force demographics –establishing goals (“quotas”) and timetables for correcting imbalances What do you think of Affirmative Action and “Quota Systems”?

25. 5-25 Critical Managerial Roles Insert Table 5.2

26. 5-26 Discrimination Overt Discrimination –Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization –Unethical and illegal –Subjects firm to lawsuits Not usually that simple…

27. 5-27 Perception Perception - The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them. Stereotypes and biases lead to inaccurate perceptions which result in managers being more likely to make bad decisions and take inappropriate actions.

28. 5-28 Perception Bad decisions include: 1.Not hiring qualified people 2.Failing to promote top-performers 3.Promoting poorly performing managers because they have the same “diversity profile” 4.Favoring employees with assignments & tasks 5.Treating people in accordance with stereotypes and biases

29. 5-29 Perception Perception as a Determinant of Unfair Treatment Stereotype - Simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people Bias - The systematic tendency to use information about others in ways that result in inaccurate perceptions

30. 5-30 Bias Similar-to-me effect – perceive others who are similar to ourselves more positively than we perceive people who are different Social status effect – perceive individuals with high social status more positively than those with low social status Salience effect – focus attention on individuals who are conspicuously different

31. 5-31 How to Manage Diversity Steps in Managing Diversity Effectively: 1.Secure top management commitment 2.Strive to increase the accuracy of perceptions 3.Increase diversity awareness 4.Encourage flexibility 5.Pay close attention to how organizational members are evaluated 6.Empower employees to challenge discriminatory behaviors, actions, & remarks 7.Reward employees for effectively managing diversity 8.Encourage mentoring of diverse employees

32. 5-32 Sexual Harassment Forms of Sexual Harassment 1. Quid pro quo - Asking or forcing an employee to perform sexual favors in exchange for some reward or to avoid negative consequences.

33. 5-33 Sexual Harassment Forms of Sexual Harassment 2. Hostile work environment –Occurs when organizational members are faced with an intimidating, hostile, or offensive work environment because of their gender –Interferes with their ability to perform their jobs effectively –Can also be when others are harassed and it is witnessed

34. Steps Employers Can Take 1.Treat complaints seriously 2.Condemn behavior with a strong policy 3.Inform employees – publish policy often 4.Develop complaint procedure 5.Establish a rapid response system 6.Increase supervisors’ awareness (training) 7.Punish the guilty 8.Keep records 9.Conduct exit interviews with all employees 10.Encourage candid, upward communication

35. What’s an Employee to Do? 1.Make a verbal complaint 2.File a written report 3.Turn to local EEOC office to file a complaint 4.Consult legal counsel