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Michael A. Hitt
C. Chet Miller
Adrienne Colella
Chapter 2
Organizational
Diversity
Slides by Ralph R. Braithwaite
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Diversity in the LAFD
• What are your thoughts about the opening
scenario?
• Are there jobs that should be left to one
gender or the other? Why or why not?
• Have you seen discrimination based on race?
• Were the consequences as a result of the Los Angeles
Fire Department’s actions too lenient, too severe, or
just right?
• Do you think the “steps to remedy the situation” are
enough? Why or why not?
Exploring Behavior in Action
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Knowledge Objectives
1. Define organizational diversity and distinguish between
affirmative action and diversity management.
2. Distinguish multicultural, plural, and monolithic
organizations.
3. Describe the demographic characteristics of the U.S.
population and explain their implications for the
composition of the workplace.
4. Discuss general changes in the United States that are
increasing the importance of managing diversity effectively.
5. Understand why successfully managing diversity is
extremely important for high-involvement work
organizations.
6. Discuss the various roadblocks to effectively managing a
diverse workforce.
7. Describe how organizations can successfully manage
diversity.
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Diversity Defined
A characteristic of a group of people where
differences exist on one or more relevant
dimensions such as gender.
Diversity is a group characteristic, not an
individual characteristic.
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Common Dimensions
• Gender
• Race
• Ethnicity
• Age
• Religion
• Social Class
• Sexual Orientation
• Personality
• Functional Experience
• Geographical Background
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Quote
“The effects of diversity can result from any
attribute that people use to tell themselves that
another person is different.”
K. Y. Williams and C. A. O’Reilly
Thoughts?
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Examples of Definitions
Thoughts?
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Strategic Importance of
Organizational Diversity
• Improves
• Corporate culture
• Recruitment
• Relationships with clients and customers
• Builds competitive advantage
• Understand and serve diverse customer base
• Heterogeneous teams deal better with complex
problems and challenging tasks
• More commitment to organization’s mission
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Affirmative Action vs.
Diversity Management
Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity
Management Programs
Ongoing, permanent changes Temporary, until
representation of
disadvantaged groups
Time Frame
Attempts to uncover the root
causes of diversity problems
Does not address the
cause of problems
Cause of
Problems
Allows all associates to reach
their full potential
Recruitment, mobility,
and retention
Focus
Assumes that managers and
the organizations will change
Assumes individuals will
assimilate and adapt
Assimilation
Create an inclusive,
empowered work environment
Prevent and remedy
discrimination
Purpose
Diversity Management Affirmative Action
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Organizational Diversity
Multicultural
Organization
Plural
Organization
Monolithic
Organization
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Forces of Change
• Changing workforce demographics –
percentage by race, age and sex – Exhibit 2-2
• Increase in the service economy
• Global economy
• Requirements for teamwork
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High-Involvement Organizations
• Commitment to the
organization
• Job involvement
• Satisfaction
Individual
Outcomes
• Decision making
• Creativity
• Complex tasks
• Productivity
• Return on equity
• Market performance
Group
Outcomes
Organizational
Outcomes
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Societal and Moral Outcomes
$10.5M & $8M
$192.5M
$176M
$132.5M
$250M
$47M
$508M
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Laws Preventing Discrimination
Adapted from Exhibit 2-3: Federal Laws Preventing Employment Discrimination
Title VII of the
1964 Civil
Rights Act,

Civil Rights
Act of 1991



Equal Pay
Act of 1963


Age
Discrimination
in Employment
Act of 1967


Title I of the
Americans with
Disabilities Act
of 1990
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The Case of France
• Religious discrimination
• Discrimination issues in hiring
• Promotional issues
• Thoughts on the policy of not collecting data on
race and ethnicity or no affirmative action laws?
• Thoughts on what these companies are doing?
Experiencing
Strategic OB
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Roadblocks to Diversity
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Prejudice and Discrimination
Prejudice Discrimination
Modern Racism
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Stereotypes
A generalized set of
beliefs about the
characteristics of a
group of individuals
What thoughts come to
mind when you perceive the
individuals in these
photographs?
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Common Stereotypes
Adapted from Exhibit 2-4: Common Stereotypes
White Men Women
People with
Disabilities
Jewish People Black People Japanese Men
Arab People Athletes Accountants
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Stereotyping – Difficult to Stop
• Tough to dispel
• Guide what information we look
for, process and remember
• Seems to be an enduring human
quality – everyone has some
stereotypes
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Women, Work and Stereotypes
Experiencing
Strategic OB
• While things have improved, are there still
gender issues in the workplace?
• Are the issues faced by the women in the text
unique and unusual?
• What are your thoughts about the survey
conducted by Elle and MSNBC.com?
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Social Identity
A person’s knowledge that he or she belongs to
certain social groups, where belonging to those
groups has emotional significance. Key Points:
• Person’s social identity becomes more salient and
noticeable when in the minority on an important
dimension
• Having a social identity different than the majority may
make people feel they have to behave in ways that are
unnatural for them in certain contexts
• Minority group members often fear losing their social
identity
• People often evaluate others based on their membership
in social groups
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Sample Self-Identity Structures
Adapted from Exhibit 2-5: Sample Self-Identity Structures
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Sources of Power
Expert
Knowledge
Formal
Position
Control
Rewards and
Resources
Being
Irreplaceable
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Ascribed Status
Status and power that is assigned by cultural
norms and depends on group membership
• High-status individuals speak more and use
stronger influence tactics than members of low-
status groups
• People belonging to groups with different amounts
of power and status may avoid interacting with one
another and may form cliques with members of
their own groups
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Communication Problems
• Different languages
• Different levels of fluency in the dominant
language
• Excluding those who don’t speak the language
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Communication Disagreement
Among Cultures
• Willingness to openly disagree
• Importance of maintaining “face” or dignity
• The way “agreement” is defined
• Time devoted to establishing personal
relationships
• Willingness to speak assertively
• Mode of communication - written or verbal
• Personal space and nonverbal communication
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Structural Integration
The degree to which minorities and women are
represented in all occupations within an
organization. Two levels exist – poorly integrated
and well integrated.
The next two slides show examples of each –
both organizations have approximately 35% of the
employees being female and/or minority.
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Poor Structural Integration
Middle Management
0% 0% 2% 0%
0% 1% 10% 2%
0% 5% 15% 5%
25% 25% 40% 26%
60% 65% 80% 75%
0.5%
3.25%
6.25%
29%
70%
Top Management
Supervisor
Staff
Line Worker
Percentage of people
who are female and/or
racial and ethnic minority
group members
Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations
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Good Structural Integration
Percentage of people
who are female and/or
racial and ethnic minority
group members
35% 35% 35% 35% 35%
35% 35% 35% 35% 35%
35% 35% 35% 35% 35%
35% 35% 35% 35% 35%
35% 35% 35% 35% 35%
Top Management
Supervisor
Staff
Middle Management
Line Worker
Adapted from Exhibit 2.6: Examples of Poorly Integrated and Well-Integrated Organizations
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Roadblocks
• Poor integration creates power and status
differentials – become associated with gender
and race
• Poor integration fosters negative stereotypes
• Women and minorities who are successful may
be perceived to have token status
• Women and minorities perception – impossible
to move up
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Commitment of Leaders
• Communicate through multiple channels
• Personally lead all diversity efforts
• Sponsor employee councils
• Ensure cross-cultural communication
• Be accountable for advancing diversity initiatives
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Managerial
Advice
Promoting a Positive
Diversity Environment
Principles
• Pause to short circuit the emotion and reflect
• Connect with others in ways that affirm the
importance of relationships
• Question interpretations and explore blind
spots
• Obtain genuine support that doesn’t
necessarily validate initial points of view but
rather helps in gaining a broader perspective
• Shift the mindset
Thoughts?
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Integration With the
Strategic Plan
• Increased market share and new customer bases
• External awards for diversity efforts
• Associates’ attrition rate
• Associates’ work satisfaction
• Associates’ and managers’ satisfaction with
workplace climate
Common measures of diversity effectiveness
include:
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Associate Involvement
• Discussion groups from
a cross-section of staff
• Employee satisfaction
surveys
• Cultural diversity audits
• Informal employee feedback hotlines
• Develop and support affinity groups – groups
that share common interests
• Provide training
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Diversity Initiatives at Denny’s
• Recruiting
• Retention
• Development
• External partnerships
• Communication
• Training
• Staffing and infrastructure
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The Strategic Lens
1. How does organizational diversity contribute
to an organization’s competitive advantage?
2. What actions are required to create diversity in
an organization, particularly in one that has
homogeneous membership at present?
3. How does diversity in an organization affect its
strategy?
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Questions