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Chapter 3:

Workplace Diversity, Equal


Employment Opportunity, and
Affirmative Action

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Learning Objectives
• Discuss lesbian, gay, bisexual, and transgender employees as a
protected class.
• Describe diversity and diversity management and explain the
various components of the diverse workforce.
• Identify the major laws affecting equal employment
opportunity.
• Describe the recent trend against employee retaliation.
• Identify some of the major Supreme Court decisions that have
had an impact on equal employment opportunity and
affirmative action.

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Learning Objectives (Cont.)
• Describe the Equal Employment Opportunity Commission
and explain the purpose of the Uniform Guidelines on
Employee Selection Procedures.
• Describe disparate treatment and adverse impact and explain
the Uniform Guidelines related to sexual harassment,
national origin, religion, and caregiver (family responsibility)
discrimination.
• Explain affirmative action as required by presidential
Executive Orders 11246 and 11375 and describe affirmative
action programs.
• Describe sexual harassment in the global environment.
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HRM in Action: Lesbian, Gay, Bisexual, and
Transgender Employees as a Protected Class?

•Increased focus in political and workforce arena


•Public tends to support equal rights for gay people —
with exception of right to marry
•Many companies have policies in support of LGBT
employees

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Diversity
• Any perceived difference among people
• More than equal employment and affirmative
action
• Creates workforces that mirror populations and
customers

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Diversity Management

Ensuring that factors are in place to:


• Provide for and encourage the continued
development of a diverse workforce
• Meld actual and perceived differences
among workers

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Components of the Diverse
Workforce
• Single parents and • People with disabilities
working mothers • Immigrants
• Women in business • Foreign workers
• Mothers returning to • Young persons, some
the workforce with limited education
• Dual-career families or skills
• Workers of color • Baby Boomers, Gen X,
• Older workers Gen Y, and Gen Z

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Single Parents and Working
Mothers
• Number is growing
• 50% of marriages end in divorce
• Widows and widowers who have children
• 72% of mothers with children under 18 are in
workforce
• Being a mother does not significantly change
young women's career ambitions

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Women in Business
• Prominent rise in number of women in labor force
• Entering labor force in high-paying, professional
jobs and women dominating health-care sector
• Women make up majority of American workforce
• Many opt out of corporate life

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Mothers Returning to the
Workforce
• More new mothers are leaving the labor force only to
return later
• Some firms are trying to recruit them to return to
labor force
• Some employers have programs that help their
employees leave and later return

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Dual-Career Families
• Both husband and wife have jobs and family
responsibilities
• Children often have both parents working outside
home
• Often turn down relocations
• Want more workplace flexibility

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Workers of Color
• By 2016, 43% of new job applicants will be people of
color
• Often experience stereotyping
• Often encounter misunderstandings and expectations
• Bicultural stress
• Culture of origin can lead to misunderstandings in
workplace

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Older Workers
• Many Boomers deferred retirement
• United States faces rapid departure of Boomers
• Many companies try to keep the over-55 worker

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Persons with Disabilities
• Disabled workers do as well as unimpaired
workers in terms of:
• Productivity
• Attendance
• Average tenure
• Costs for accommodations differ very little
from those for general population

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Immigrants
• Large numbers of immigrants have settled in United
States
• Require time to adapt
• Managers must work to understand different
cultures and languages

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Foreign Workers
• The H-1B employment visa brings in upwards of
115,000 skilled foreign workers annually
• 85,000 are distributed to employers through a lottery
system
• Exact number of H-1B visa holders is difficult to
determine

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Young Persons, Some with
Limited Education or Skills
• Lower labor force participation rate for young
people
• Recent recession was especially harsh for 16-to-19-
year-olds
• Often have poor work habits
• Can do many jobs well
• Jobs can be de-skilled

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Baby Boomers
• Born just after World War II through the mid-1960s
• Employers seek out boomers because they bring a
wealth of skills and experience to the workplace
• Recognized as having a great work ethic and a solid
attendance record

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Generation X
• 41 million American workers born between the
mid-1960s and late 1970s
• Possess lots of energy and promise
• Job instability and the breakdown of the traditional
employer-employee relationship
• Think more as free agents and expect to build
career security, not job security

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Generation Y
• People born between the late 1970s and late
1990s
• Promises to be the richest, smartest, and savviest
ever
• Strong sense of morality and civic-mindedness
• Childhoods have been short-lived

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Generation Z or Digital Natives

• Born between 1995 and 2009


• More worldly, high-tech and confident
• Tend to have short attention spans
• Desire speed over accuracy
• Enjoy media that provides live social
interaction

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Multigenerational Diversity
• Four generations are now in the workforce
• Each has different defining characteristics and
nicknames
• Managers need to be aware of and skilled in
dealing with the different generations

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Equal Employment Opportunity:
An Overview
• EEO modified since passage of:
• Equal Pay Act of 1963
• Civil Rights Act of 1964
• Age Discrimination in Employment Act of 1967
• Other congressional legislation
• Major Supreme Court decisions
• Executive orders signed into law

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Laws Affecting Equal
Employment Opportunity
(U.S.)

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Civil Rights Act of 1866
• Oldest federal legislation affecting staffing
• Based on Thirteenth Amendment
• No statute of limitations
• Employment is a contractual arrangement
• Extended to cover private parties in 1968

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Equal Pay Act of 1963,
Amended in 1972
• Cannot pay employee of one gender less money
than employee of opposite gender if both
employees do work that is substantially the same
• Work must:
• Require equal skill
• Require equal effort
• Involve equal responsibility
• Be performed under similar working conditions

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Lilly Ledbetter Fair Pay Act of
2009
• Claimed pay discrimination
• Court said that discrimination charges
must be filed within 180 days
• Creates a rolling or open time frame for
filing wage discrimination claims

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Comparable Worth
• Requires determination of the values of dissimilar
jobs by using job evaluation
• Pay rates determined by jobs’ evaluated worth
• Supreme Court has ruled the Equal Pay Act does not
require comparable worth

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Civil Rights Act of 1991
• Provided appropriate remedies for intentional discrimination
and unlawful harassment
• Codified “business necessity” and “job-relatedness”
• Confirmed authority and guidelines for finding disparate
impacts under Title VII
• Disparate impact: When certain actions in employment
process work to disadvantage of members of protected
groups. Discussed under topic of adverse impact

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Age Can Be Bona Fide
Occupational Qualification
• Federal Aviation Administration can force
commercial pilots to retire at age 65
• Greyhound did not violate ADEA when it refused to
hire persons 35 years or older as intercity bus
drivers
• Likelihood of risk or harm to passengers was
involved with both cases

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Rehabilitation Act of 1973
• Prohibits discrimination against disabled workers
working for government contractors and organizations
• Contracts exceeding $2,500: Employer required to post
affirmative action notices
• Contracts exceeding $50,000, or if contractor has 50 or
more employees: Employer must prepare written
affirmative action plan
• Administered by Office of Federal Contract Compliance
Programs (OFCCP)

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Americans with Disabilities Act
of 1990 (ADA)
• Prohibits discrimination against qualified individuals
with disabilities
• Disabled individual: Person who has, or is regarded
as having, a physical or mental impairment that
substantially limits one or more major life activities,
and has a record of such an impairment

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Title VII of Civil Rights Act of 1964,
Amended in 1972
• Greatest impact on HR management
• Illegal for employer to discriminate
• Applies to firms with 15 or more employees
• Created the Equal Employment Opportunity
Commission (EEOC) to enforce Title VII

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Pregnancy Discrimination Act of
1978
• Amendment to Title VII of Civil Rights Act
• Pregnancy, childbirth, or related medical condition
• Prohibits questions about family plans, birth control
techniques, etc.
• Benefits area also covered

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Age Discrimination in Employment Act of
1967, Amended in 1986
• Illegal to discriminate against anyone 40 years or
older (previously 40-65 & 40-70)
• Administered by EEOC
• Pertains to employers who have 20 or more
employees
• Provides for trial by jury
• Possible criminal penalty
• Class action suits are possible

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Americans with Disabilities Act:
Amendments Act of 2008
• Expanded the definition of “disability”
• More applicants and employees eligible for
reasonable accommodations
• Broadened ADA's definition of disability by expanding
term “major life activities”
• Did away with “substantially limited” requirement

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Immigration Reform and Control Act
(IRCA) of 1986
• Granted amnesty to approximately 1.7 million long-
term unauthorized workers
• Established criminal and civil sanctions against
employers who knowingly hire unauthorized aliens
• Reduced threshold coverage to 4 employees
• Toughened criminal sanctions for employers who
hire illegal aliens

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Vietnam Era Veterans’ Readjustment
Assistance Act of 1974, as Amended
• Originally referred to Vietnam era veterans
• Served in a campaign or expedition for which a
medal was issued
• Includes Desert Storm and the current
engagements in the Middle East
• Prohibits federal contractors from
discriminating against specified categories of
veterans

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Supreme Court Decisions Affecting
Affirmative Action

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Factors that Determine whether EEOC
will Pursue Litigation
• Number of people affected by alleged
practice

• Amount of money involved in charge

• Other charges against employer

• Type of charge

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Concept of Disparate Treatment
• Employer treats some people less favorably than
others because of: race, religion, sex, national
origin, and age.
• Most easily understood form of discrimination
• McDonald v. Santa Fe Trail Transportation Company
(1977) offers an example of disparate treatment

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Concept of Adverse Impact
• Defined in terms of selection rates
• Established by Uniform Guidelines
• Occurs if women and minorities are not hired at
rate of at least 80% of best-achieving group
• Also called the four-fifths rule

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Adverse Impact Example
• During 2013, 300 blacks and 300 whites were hired
• 1,500 qualified black applicants
• 1,000 qualified white applicants
• Using the adverse impact formula, you have:
300/1500 = 0.2
300/1000 = 0.3 = 66.67%
Thus, adverse impact exists.

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Guidelines on Sexual Harassment

• Title VII generally prohibits gender discrimination in


employment
• EEOC issued interpretative guidelines
• Two types of sexual harassment:
• Hostile work environment
• A quid pro quo situation

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Sexual Harassment (Cont.)
• Employers are liable for acts of supervisors,
regardless of whether employer is aware of the
sexual harassment
• Employer is responsible for acts of co-workers if
employer knew, or should have known, about the
acts
• Employer may be liable for acts committed by
nonemployees in workplace
• Employer may not be liable if it takes immediate and
appropriate action

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English-Only Rule
• Courts generally ruled in employer’s favor if rule
would:
• Promote safety and product quality
• Stop harassment
• Must be justified by a compelling business
necessity

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Guidelines on Discrimination
Because of Religion
• Obligation to accommodate religious
practices unless employer can
demonstrate a resulting hardship

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Methods for Accommodating
Religious Practices
• Voluntary substitutes
• Flexible scheduling
• Lateral transfers
• Change in job assignments
• Unions can permit donations

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A Global Prospectus: Global
Sexual Harassment
• Behaviors that violate U.S. cultural norms may not
be perceived as a problem in another culture
• Level of enforcement varies considerably from
country to country

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Tutorial
Global sexual harassment: “Behaviours that violate
U.S. cultural norms may not be perceived as a
problem in another culture”

1.Discuss how an employee can differentiate between what is


‘sexual harassment’ and what is ‘the norm’.
2.How should employees react to ‘norms’ that they are not
used to/ find unacceptable.
3.To what extent should organisations allow ‘the norm’ at the
workplace?

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Tutorial
Select one (1) component of the diverse workforce
and explain how compensation and benefit can be
customized to fit them appropriately:

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