Managing Ethics
and Diversity:
Why Value
Diversity?
Chapter Three
Supplement
Why Should We Value Diversity?
“Over the last few years, it has become clear that
organizations must pursue workplace diversity as a
competitive necessity.”
Jeffrey Gandz, Prof. Ivey School of Business, Canada
2-2
Competitive Advantage
• What is a “competitive advantage?”
• “Competitive advantage” gives a company an edge
over its rivals and an ability to generate greater
value for the firm and its shareholders.
• The more sustainable the competitive advantage,
the more difficult it is for competitors to neutralize
the advantage.
•
http://www.investopedia.com/terms/c/competitive_advantage.asp#ixzz1yIjrjp00
2-3
Supplier Relationships
• Can diversity be a competitive advantage?
Whether buying goods and services in China, South
America, India, etc. the ability to deal with suppliers
in their own language, in appropriate behavioral
manners, and to conduct successful negotiations
may be critical dimensions of a competitive
advantage.
2-4
Focus on Employees
• Can diversity be a competitive advantage?
• In an era of cutting-edge technology, organizations
are finding that they must attract, retain, motivate
and utilize valuable human resources effectively if
they are to be competitive. Diversity in
management and staff can reduce unwelcome
turnover, reduce absenteeism and be a powerful
magnet in recruitment.
2-5
Globalization
• Can diversity be a competitive advantage?
• As business is done more and more through
partnerships, joint ventures and strategic alliances,
an ability to relate to other cultures becomes a key
organizational requirement. Organizations seeking
global success will need high levels of diversity in
their workforces.
2-6
Being a Good Corporate Citizen
• There are both tangible and intangible benefits and
costs associated with being a good corporate citizen
and an organization's performance in developing a
diverse workforce is one key element in obtaining
such a profile.
Diversity and Legal Costs
• The United States and often other countries have to
face the very real possibility of legal pressure and
sanctions for non-compliance to jurisdictions.
The Business Case for Diversity
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Anticipating and Responding to Customer Needs
Supplier Relationships
Innovation
Globalization
Diversity and Employees
Being a Good Corporate Citizen
Reducing Legal Costs
Diversity and Society
http://www.youtube.com/watch?v=ui4kjsWH-78
Laws & Regulations in the US
• Thirteenth Amendment : Abolished Slavery 1865
• Civil Rights Acts 1866 and 1871
• Keating-Owen Act of 1916: child labor act
• Equal Pay Act of 1963
• Title VII of CRA of 1964: protects individuals from discrimination based
on race, color, sex, religion, national origin)
• Age Discrimination in Employment Act of 1967
• Rehabilitation Act of 1973: expands Federal responsibility
• Pregnancy Discrimination Act of 1978
• Americans with Disabilities Act of 1990
• Executive Order 11246 (i.e., requires affirmative action in hiring women
and minorities)
Microsoft
http://www.youtube.com/watch?v=P3AbIGSIcMo
Consequences of Diversity
The Environment
Conflicts
Diversity
Creativity
http://www.youtube.com/watch?v=kNqWcsI0IRA&feature=related
But, what about conflict...?
• Mary Follett Parker pointed out
long ago that:
“..organizational wrestling with
integrating diversity and difference
should not count the number of
conflicts but, instead, they should
analyze the nature of the conflicts
and how they are handled”
(Brickson, 2000, p. 94).
(1868 -1933)
Causes of Conflict
– Incompatibility of goals
– Differences over interpretation of facts
– Disagreements based on (behavioral) expectations
and future behaviors
– Differences in risk tolerance
– Differences in time management
– Differences in interests
– Differences in political beliefs
Different Types of Conflict
1. Traditional view of conflict
2. Human relations view of conflict
3. Interactionist view of conflict
Traditional View of Conflict
The belief that all
conflict is harmful and
must be avoided.
Causes:
• Poor communication
• Lack of openness
• Failure to respond to
employee needs
Human Relations View of Conflict
The belief that
conflict is a natural
and inevitable
outcome in any
group.
Interactionist View of Conflict
The belief that conflict is not only a
positive force in a group-but that it is
absolutely necessary for a group to
perform effectively.
Functional vs Dysfunctional Conflict
Functional Conflict
Conflict that supports the goals
of the group and improves its
performance.
Dysfunctional Conflict
Conflict that hinders
group performance.
Types of Conflicts
Relationship Conflict:
– Conflict based on interpersonal relationships.
Task Conflict:
– Conflicts over content and goals of the work.
Role Conflict:
– A situation in which an individual is confronted
by divergent role expectations.
Process Conflict:
– Conflict over how work gets done.
Levels of Conflict
1. Intrapersonal or intrapsychic conflict (i.e.,
within an individual)
2. Interpersonal conflict (between individuals)
3. Intragroup conflict (among group members)
4. Intergroup conflict (between groups)
Lewicki, Saunders & Barry (2003)
Cognitions and Emotions and Conflict
Perceived Conflict
Felt Conflict
Awareness by one or more
parties of the existence of
conditions that create
opportunities for conflict to
arise.
Emotional involvement in a
conflict creating anxiety,
tenseness, frustration, or
hostility.
Conflict Definition
Negative Emotions
Positive Emotions
Distrust
Trust
Examples of Moral Dilemmas
• Being dishonest (“white lies”)
• Use of illegal substances
• Intervening in an emergency
Finally, Why Value Diversity?
Valuing diversity requires
making accommodations
for the needs, values,
beliefs and lifestyles
which will characterize a
more diverse workforce