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Managing the Diverse Workforce

Chapter 11 Bateman and Snell

Learning Objectives
After studying Chapter 11, you will know:
how changes in the U.S. workforce make diversity a critical organizational and managerial issue the distinction between affirmative action and managing diversity how companies can gain a competitive edge by effectively managing diversity what challenges a company is likely to encounter with a diverse workforce how an organization can take steps to cultivate diversity

Diversity: A Brief History

Managing diversity
understanding and appreciating employee differences to build a more effective and profitable organization 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 organizations advantage

Diversity Today
broad term used to refer to all kinds of differences
race, age, sex, religion, attitudes, physical abilities, life interests, expectations, flexibility, aggressiveness, extroversion

members of different groups share common values, attitudes, and perceptions

there is still much diversity within each group

Components Of A Diversified Workforce

Racial and ethnic minorities in the United States Immigrants Physically and mentally disabled Workforce Diversity

Gender Age

Religious affiliation Veteran status Sexual orientation Expectations and values Lifestyle Skill level Educational level Economic class Workstyle Function and/or position within the company

How Effective Is Your Diversity Program?

Ineffective 2% Somewhat ineffective

Undecided 11%

Very Effective 8%

Effective 22%

Somewhat effective 49%

Diversity Today (cont.)

Workers of the future
until recently, white, American born males dominated the U.S. workforce
now, they only account for 15 percent of the net growth

Gender issues - growing number of women working

outside the home
balancing work life with family responsibilities and parenting presents an enormous challenge average full-time working female earns about 77% of the average full-time working male
result of both the level and type of work performed by women glass ceiling - invisible barrier hindering women and minorities from moving beyond a certain level in the corporate hierarchy

Diversity Today (cont.)

Workers of the future (cont.)
Gender issues (cont.)
sexual harassment - conduct of a sexual nature that has negative consequences for employment
EEOC - investigates and prosecutes cases of sexual harassment quid pro quo harassment - submission to or rejection of sexual conduct is used as a basis for employment decisions hostile environment - unwelcome sexual conduct has the purpose or effect of reasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment

the changing status of women has given men the opportunity to redefine their roles, expectations, and lifestyles

Diversity Today (cont.)

Workers of the future (cont.)
Minorities and immigrants - growing percentage of
the workforce
estimated that 14 percent of the work force is foreign born African Americans are about 12 percent, Asian Americans are about 5 percent, Hispanic Americans about 12 percent Asians and Hispanics are growing the fasted

Mentally and physically disabled - largest

unemployed minority population is the U.S.
disability - a physical or mental impairment that substantially limits one or more major life activities disabled lack access to educational and workplace environments attitudes of employers an important barrier to employment

Diversity Today (cont.)

Age of the workforce
average age is increasing
many older workers are opting for early retirement fewer new workers will enter the labor force than will be lost through retirement

retirement-age workers can be encouraged to remain or reenter the workforce on a flexible or part-time basis

Diversity Today (cont.)

Future jobs and workforce qualifications
the U.S. is becoming a predominantly serviceoriented economy people without high school diplomas are at a distinct disadvantage gap is growing between the knowledge and skills jobs require and those many employees and applicants possess
literacy is often the underlying problem employers are combating this basic-skills gap
offer in-house basic-skills training program

Managing Diversity Versus Affirmative Action

Affirmative action (AA)
instituted to curb discrimination and correct the past exclusion of women and minorities from U.S. organizations nonetheless, employment discrimination still persists
AA has not adequately improved the upward mobility of women and minorities

reverse discrimination exists when qualified white males are passed over for employment opportunities

Managing diversity
means moving beyond legislated mandates to embrace a proactive business philosophy that values differences eliminates barriers that hinder attainment of full potential

Managing Diversity Versus Affirmative Action (cont.)

Competitive advantage through diversity
original impetus to diversity workforces was social responsibility and legal necessity
today, many organizations are also approaching diversity from a more practical, business-oriented perspective

Ability to attract and retain motivated employees

companies with reputation for diversity have competitive advantage in the labor market companies will be sought out by most qualified employees employees who believe that their differences are valued may become more loyal, productive, and committed

Managing Diversity Versus Affirmative Action (cont.)

Competitive advantage through diversity (cont.)
Better perspective of a differentiated market
as the composition of the American workforce changes, so does the customer base of these companies
diverse customers may prefer to patronize such organizations

a multicultural workforce can provide a company with greater knowledge of the preferences and consuming habits of this diversified marketplace

Ability to leverage creativity and innovation in problem solving

people from different backgrounds hold different perspectives diverse work groups are freer to deviate from traditional approaches

Managing Diversity Versus Affirmative Action (cont.)

Competitive advantage through diversity (cont.)
Enhancement of organizational flexibility
managing diversity requires a corporate culture that tolerates different styles and approaches

Challenges of a diverse workforce

Lower cohesiveness - lack of similarity in
culture causes diverse groups to be less cohesive Communication problems - most common negative effect
diversity increases errors and misunderstandings

Managing Diversity Versus Affirmative Action (cont.)

Challenges of a diverse workforce (cont.)
Mistrust and tension - mistrust and
misunderstanding of those who are different because of a lack of contact and low familiarity Stereotyping - inappropriately stereotype their different colleagues rather than accurately perceiving and evaluating those individuals contributions, capabilities, aspirations, and motivations
stereotypes affect how people are treated

Multicultural Organizations
Monolithic organizations
an organization that has a low degree of integration
employs few women, minorities, or other groups that differ from the majority
low minority employees must adopt the norms of the majority

has a highly homogeneous employee population

Pluralistic organizations
have a more diverse employee population use an affirmative action approach to managing diversity some acceptance of minorities into the informal network much less discrimination and less prejudice

Multicultural Organizations (cont.)

Multicultural organization
values cultural diversity and seeks to utilize and encourage it fully integrate gender, racial, and minority group members both formally and informally absence of prejudice and discrimination low levels of intergroup conflict

synergistic environment
all members contribute to their maximum potential and the advantages of diversity can be fully realized

How Organizations Can Cultivate A Diverse Workforce

Top management leadership and commitment

top management support is critical incorporate organizations attitudes toward diversity into the corporate mission statement, strategic plans, and objectives establish corporate offices or committees to coordinate the companywide diversity effort that provides feedback to top management minority advisory groups or task forces to monitor organizational policies, practices, and attitudes
assess program impact on diverse groups provide feedback and suggestions to top management

How Organizations Can Cultivate A Diverse Workforce (cont.)

Organizational assessment
establish an ongoing assessment of the organizations workforce, culture, policies, and practices
identify problem areas make recommendations where changes are needed

corporate values and norms should be identified and critically evaluated regarding their necessity and their impact on the diverse workforce

How Organizations Can Cultivate A Diverse Workforce (cont.)

Attracting employees
Recruitment - a companys image can be a
strong recruiting tool
a reputation for hiring and promoting all types of people can be a competitive advantage many minorities and economically disadvantaged people are physically isolated from job opportunities
companies can bring information about job opportunities to the source of labor companies can transport labor to the jobs

How Organizations Can Cultivate A Diverse Workforce (cont.)

Attracting employees (cont.)
Accommodating work and family needs
corporate work and family policies are now one of the most important recruiting tools providing child care leads to:
decreased turnover and absenteeism improved morale

concerns for dual-career couples expressed by:

limiting relocation requirements provide job search assistance to relocated spouses

How Organizations Can Cultivate A Diverse Workforce (cont.)

Attracting employees (cont.)
Alternative work arrangements
offer flexible work schedules and arrangements
compressed workweeks job sharing - two part-time workers share one fulltime job teleworking - working from home telecommuting - working from home via computer hookup to the main worksite

How Organizations Can Cultivate A Diverse Workforce (cont.)

Diversity training
attempt to identify and reduce hidden biases and develop skills needed to effectively manage a diversified workforce Awareness building - to increase awareness of the meaning and importance of valuing diversity
sensitize employees to assumptions they make about others become familiar with stereotypes and cultural differences become familiar with organizational barriers that inhibit the full contributions of all employees teach the unwritten rules or cultural values to those who need to know them

How Organizations Can Cultivate A Diverse Workforce (cont.)

Diversity training (cont.)
Skill building - designed to allow all employees to
develop the skills they need to deal effectively with one another and customers in a diverse environment
most of the skills taught are interpersonal develop personal action plans before they leave the program experiential exercises and videotapes often are used

Retaining employees
Support groups - form minority networks to promote
information exchange and social support
provide emotional and career support help diverse employees understand work norms and cultures

How Organizations Can Cultivate A Diverse Workforce (cont.)

Retaining employees (cont.)
Mentoring - higher-level managers help
ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization
help diverse employees enter the informal network

Career development and promotion -

establish teams to evaluate the career progress of diverse employees

devise ways to move them up through the ranks

How Organizations Can Cultivate A Diverse Workforce (cont.)

Retaining employees (cont.)
Systems accommodation - recognize:
cultural and religious holidays differing modes of dress dietary restrictions needs of individuals with disabilities

Accountability - managers held accountable for

workforce development
performance appraisal and reward systems reinforce the importance of effective diversity management