78
Source: John Schultz/Quad-City Times/ZUMAPRESS/Alamy
2
Diversity
in Organizations
Learning Objectives
After studying this chapter, you should be able to:
2-1
Describe the two major forms of workplace
diversity.
2-4
Explain how other differentiating characteristics
factor into OB.
2-2
Demonstrate how workplace discrimination
undermines organizational effectiveness.
2-5
Demonstrate the relevance of intellectual and
physical abilities to OB.
2-3
Describe how the key biographical characteristics
are relevant to OB.
2-6
Describe how organizations manage diversity
effectively.
MyManagement
If your professor has chosen to assign this, go to the Assignments section
of mymanagementlab.com to complete the chapter warm up.
Exploiting a loopholE
W
elcome to Atalissa, Iowa, a quintessential small town of 311 people—
and a nasty secret. If you’ve seen this picture before, you are probably
aware that what happened in this converted schoolhouse is the basis of
the largest U.S. Equal Employment Opportunity Commission
(EEOC) award in history.
The tale of the Atalissa bunkhouse begins in 1974, when
Henry’s Turkey Service of Texas rented the abandoned building
near its Iowa processing plant to house its workers, a group
of young, mentally disabled men taken from state institutions.
At the time, the unregulated work-to-live arrangement that provided the men with an average of only $65 per month for fulltime employment was completely legal. Why? A section of the
Fair Labor Standards Act of 1938 allowed certified for-profit
employers to pay less than minimum wage to workers with
disabilities. Furthermore, the company legally deducted money from the men’s meager earnings and their Social Security
checks to cover room, board, and “extras” like medical care,
since the workers didn’t have health insurance or Medicaid.
At the plant, the men were assigned the worst jobs of manually eviscerating 20,000 turkeys per day. The work was back-breaking and “too bloody,”
said Billy Penner, who awoke at 3 a.m. for decades to work alongside the
hundreds of men who came and went from the bunkhouse.
Conditions in the bunkhouse were horrible, with no heat, covered windows and padlocked doors, cockroaches, and filth. Two “caretakers” doled
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out punishments that included standing with hands on a pole for hours and
walking in circles while carrying heavy weights. Men were sometimes handcuffed to their beds overnight, denied bathroom breaks, kicked in the groin,
and verbally abused. Men who ran away were caught and brought back.
Through the years, allegations about Henry’s Turkey Service made their way
into the legal system. They cited the poor treatment of workers; violation of the
federal Migrant and Seasonal Worker Protection Act; harsh labor that killed an
elderly, disabled worker; pay inequity; deplorable conditions; and fire hazards.
However, the Iowa Department of Human Services, the U.S. Department of
Labor, Iowa Workforce Development, and the Department of Inspections and
Appeals dismissed most of the allegations without investigation. None of the
departments ever questioned whether the indentured servitude was legal.
Finally, in 2009, a worker’s sister alerted a newspaper reporter, and investigators rescued the 21 remaining men. A number of lawsuits followed,
resulting in the largest verdict ever obtained by the EEOC and the largest
verdict relating to the Americans with Disabilities Act, over $240 million
(the business was worth only $4 million, though). No amount of money
can restore the men to health or well-being. EEOC attorney Robert Canino
referenced their “broken hearts, broken spirits, shattered dreams and, ultimately, their broken lives.”
EEOC chairwoman Jacqueline Berrien said, “The verdict sends an important message that the conduct that occurred here is intolerable in this
nation.” But does it? After all, the people of Atalissa knew the men well. The
workers attended Atalissa Zion Lutheran Church, sang in the choir, joined in
town celebrations, and spent their money at the mini mart. Atalissa owned
the bunkhouse Henry’s Turkey rented; the men were known by the mayor
and the sheriff. And the town claimed to love them. Carol O’Neill of the Atalissa Betterment Committee said, “Even though they were adult men, they
were boys to us. They were like—our boys.” Sadly, these men were not extended protection, and their rights were repeatedly ignored and dismissed.
The Atalissa scandal serves as a reminder that true fairness is not just a
warm feeling toward the disabled, but the ethical responsibility of us all.
Sources: Atalissa Population, https://suburbanstats.org/population/iowa/how-many-peoplelive-in-atalissa, accessed March 24, 2015; K. Allemeier, “How 21 Men Lived in Atalissa
Bunkhouse,” The WCF Courier (February 12, 2009), http://wcfcourier.com/news/local/howmen-lived-in-atalissa-bunkhouse/article_0d1867dc-c722-54f4-97e3-8b0d5e73e587.html;
K. Bracken, “The ‘Boys’ in the Bunkhouse,” The New York Times (March 9, 2014), http://
www.nytimes.com/interactive/2014/03/09/us/the-boys-in-the-bunkhouse.html; C. Kauffman, “Jury: $240 Million for Atalissa Workers,” Des Moines Register (May 1, 2013), http://
archive.desmoinesregister.com/article/20130501/NEWS/305010095/Jury-240-millionAtalissa-workers; and C. Kauffman, “Witness: Disabled Workers Physically Abused,” Des
Moines Register (April 25, 2013), http://archive.desmoinesregister.com/article/20130425/
NEWS/304240092/Witness-Disabled-workers-physically-abused.
Diversity in Organizations
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81
T
he exploitation of the disabled men in the opening story is a tragic example of mistreating people for the ways in which they are different. Not
only were the men abused by their supposed caretakers, but they also suffered
workplace discrimination that kept them in debilitating roles without regard to
their abilities and needs. In this chapter, we look at how organizations should
work to maximize the potential contributions of a diverse workforce. Because
each of us is different from others in myriad ways, we consider diversity in many
different forms. We also show how individual differences in abilities affect employee behavior and effectiveness in organizations.
Diversity
2-1
We are, each of us, unique. This is obvious enough, but managers sometimes
forget they need to recognize and capitalize on individual differences to get the
most from their employees. In this chapter, we’ll learn how individual characteristics like age, gender, race, ethnicity, and abilities can influence employee
performance. We’ll also see how managers can develop awareness about these
characteristics and manage a diverse workforce effectively. But first, let’s take an
overview perspective of the changing workforce.
Describe the two major
forms of workplace
diversity.
Demographic Characteristics
The predominantly white, male managerial workforce of the past has given way
to a gender-balanced, multiethnic workforce. For instance, in 1950 only 29.6
percent of the U.S. workforce was female,1 but by 2014, women comprised 47
percent.2 Both in the United States and internationally, women today are much
more likely than before to be employed full time, have an advanced education,
and earn wages comparable to those of men (see the OB Poll).3 In addition, the
earnings gap between whites and other racial and ethnic groups in the United
States has decreased significantly, partially due to the rising number of minorities in the workforce. Hispanics will grow from 13 percent of the workforce in
2014 to 25.1 percent in 2044, blacks will increase from 12 to 12.7 percent, and
Ob POLL
gender Pay gap: narrowing but still there
Human resource
managers
$1,240
$1,536
$1,518
Financial managers
$1,064
Computer and information
systems managers
$1,769
$1,549
Marketing and
sales managers
Men
Women
$1,658
$1,124
$2,266
Chief executives
$1,811
$0
$500
$1,000
$1,500
$2,000
$2,500
Approximate median weekly pay per occupation
Source: Bureau of Labor Statistics, http://www.bls.gov/opub/reports/cps/highlights-of-womens-earnings-in-2013.pdf.
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Target store manager Jerald Bryant
(center) motivating his team reflects
demographic traits of today’s
workforce. By making diversity
management a central part of
its policies and practices, Target
has created a gender-balanced,
multiethnic, and inclusive workplace.
Sources: Lexington Herald-Leader/ZUMAPRESS/Alamy
Asians from 5 to 7.9 percent.4 Workers over the age of 55 are an increasingly
large portion of the workforce as well, both in the United States and globally.
In the United States, the 55-and-older age group will increase from 19.5 percent
of the labor force in 2010 to 25.2 percent by 2020.5 Currently, in Australia
there are more workers over age 55 than under age 25, and that shift is set to
continue.6 These changes are increasingly reflected in the makeup of managerial and professional jobs. These changes also mean organizations must make
diversity management a central component of their policies and practices.
levels of Diversity
surface-level diversity Differences in
easily perceived characteristics, such as
gender, race, ethnicity, age, or disability, that
do not necessarily reflect the ways people
think or feel but that may activate certain
stereotypes.
deep-level diversity Differences in
values, personality, and work preferences that
become progressively more important for
determining similarity as people get to know
one another better.
Although much has been said about diversity in age, race, gender, ethnicity,
religion, and disability status, experts now recognize that these demographic
characteristics are just the tip of the iceberg.7 Demographics mostly reflect
surface-level diversity, not thoughts and feelings, and can lead employees to
perceive one another through stereotypes and assumptions. However, evidence
has shown that people are less concerned about demographic differences if
they see themselves as sharing more important characteristics, such as personality and values, that represent deep-level diversity.8
To understand the difference between surface- and deep-level diversity,
consider an example. Luis and Carol are managers who seem to have little
in common. Luis is a young, recently hired male from a Spanish-speaking
neighborhood in Miami with a business degree. Carol is an older woman from
rural Kansas who started as a customer service trainee after high school and
worked her way up the hierarchy. At first, these coworkers may notice their
surface-level differences in education, ethnicity, regional background, and
gender. However, as they get to know one another, they may find they are both
deeply committed to their families, share a common way of thinking about
important work problems, like to work collaboratively, and are interested in
international assignments. These deep-level similarities can overshadow the
more superficial differences between them, and research suggests they will
work well together.
Diversity in Organizations
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83
an Ethical Choice
affirmative action for Unemployed veterans
U
nemployed veterans, take heart:
Walmart wants YOU. In a historic
move, the retailing giant vowed
to hire any returning U.S. veteran who
applied. As a result, the company hired
more than 42,000 veterans by mid2014 and expects that total to reach
100,000 by 2018. Other businesses
have launched similar initiatives, such
as the 100,000 Jobs Mission, which
aimed to hire 100,000 veterans by
2020. The coalition, which originally
included 11 companies, now consists
of 190 companies from nearly every
industry. As of 2015, 217,000 veterans
had been hired, prompting the coalition
to commit to hiring another 100,000
veterans. Is this an ethical choice all
businesses should be emulating?
Few people would disagree that
there is a need to address the plight
of returning soldiers to America. Many
veterans say employers don’t want
them. “There are a lot of companies
that say they want veterans, but that
conflicts with the unemployment numbers,” claims Hakan Jackson, a former
technician in the Air Force. He’s right:
Unemployment rates remain higher for
veterans than civilians.
According to some veterans, the
returning soldiers are not competitive
discrimination Noting of a difference
between things; often we refer to unfair
discrimination, which means making judgments about individuals based on stereotypes
regarding their demographic group.
enough in the marketplace. Erik Sewell,
an Iraq war veteran, suggested the reason the veteran unemployment rate is
poor is partly that vets often don’t market their strengths well or showcase
their transferable skills to potential employers. Bryson DeTrent, a 12-year veteran of the National Guard, observed
that one of the key reasons some vets
haven’t found jobs is that they aren’t
working hard at it, preferring to collect unemployment instead. However,
he has also found that companies are
reluctant to hire veterans, especially
National Guard members, fearing these
employees may later be called to duty.
Mental and emotional well-being are
also a concern as employers may worry
that veterans suffer from post-traumatic stress disorder (PTSD). Despite
concerns, some managers report that
veterans’ work ethic, team outlook, and
receptivity to training are greater than
among the general populace.
Sometimes, affirmative action is
needed to give an unfairly disadvantaged workforce segment an opportunity to succeed, whether it is done
through percentage quotas, number
quotas, or hiring all prospective employees from the desired groups. But any
program risks including underqualified
individuals from the target group while
excluding qualified individuals from
other workforce segments. This might
mean hiring an underqualified veteran
instead of a well-qualified civilian.
Resources are always scarce, and
there are only so many jobs to go
around. Managers must balance the
ethics of affirmative action against
the responsibility of strengthening
their workforces for the good of their
organizations.
Sources: “100,000 Jobs Mission Hires Over
200,000 Veterans,” Veteran Jobs Mission
press release (February 9, 2015), https://
w w w. v e t e r a n j o b s m i s s i o n . c o m / p r e s s releases/750; D. C. Baldridge and M. L.
Swift, “Withholding Requests for Disability
Accommodation: The Role of Individual Differences and Disability Attributes,” Journal
of Management (March 2013): 743–62;
“Walmart Celebrates More Than 40,000
Hires in First Year of Veterans Commitment,” Walmart Foundation press release
(May 21, 2014), http://news.walmart.
com/news-archive/2014/05/21/walmartcelebrates-more-than-40-000-hires-in-firstyear-of-veterans-commitment; B. Yerbak and
C. V. Jackson, “Battling to Get More Vets in
the Work Force,” Chicago Tribune (October
28, 2012), http://articles.chicagotribune.
com/2012-10-28/business/ct-biz-1028vets-20121028_1_train-veterans-unemployment-rate-war-zone; and “Veterans Unemployment Drops but Remains High,” HR
Magazine, February 2013, 16.
Throughout this text, we will encounter differences between deep- and
surface-level diversity in various contexts. Diversity is an important concept in
OB since individual differences shape preferences for rewards, communication
styles, reactions to leaders, negotiation styles, and many other aspects of behavior in organizations. Unfortunately, increased diversity may also mean increases
in discriminatory practices, which we will discuss next.
Discrimination
2-2
Demonstrate how
workplace discrimination
undermines organizational
effectiveness.
Although diversity presents many opportunities for organizations, diversity management includes working to eliminate unfair discrimination. To discriminate is
to note a difference between things, which in itself isn’t necessarily bad. Noticing one employee is more qualified is necessary for making hiring decisions;
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stereotyping Judging someone on the
basis of our perception of the group to which
that person belongs.
noticing another is taking on leadership responsibilities exceptionally well is
necessary for making promotion decisions. Usually when we talk about discrimination, though, we mean allowing our behavior to be influenced by stereotypes
about groups of people. Stereotyping is judging someone on the basis of our
perception of the group to which that person belongs. To use a machine metaphor, you might think of stereotypes as the fuel that powers the discrimination
engine. Stereotypes can be insidious not only because they may affect the perpetrators of discrimination, but also because they can affect how potential targets
of discrimination see themselves.
Stereotype threat
stereotype threat The degree to which
we internally agree with the generally negative
stereotyped perceptions of our groups.
Let’s say you are sitting in a restaurant, waiting for the blind date your coworker
arranged to find you in the crowded room. How do you think your coworker
described you to this person? Now consider how you would describe yourself to
this new person if you’d talked on the phone before the date. What identifiable
groups would you mention as a shorthand way for your date to know a bit about
you so he or she could recognize you in the restaurant?
Chances are good that you’d mention your race, something about how you
express your gender (such as the way you dress), how old you are, and maybe
what you do for a living. You might also mention how tall you are if you are
remarkably tall or short, and—if you’re candid—you might mention something
about your build (heavyset, petite, in between). Overall, you’d give cues to your
blind date about characteristics that are distinctive, or stand out, about you.
Interestingly, what you tell someone about yourself says a lot about what you
think about yourself. Just as we stereotype others, we also stereotype ourselves.
Stereotype threat describes the degree to which we internally agree with
the generally negative stereotyped perceptions of our groups. Along with that
comes a fear of being judged when we are identified with the negative connotations of that group. This can happen when we are a minority in a situation. For
instance, an older worker applying for a job in a predominately Millennial-age
workforce may assume the interviewer thinks he is out of touch with current
trends. What creates a stereotype threat is not whether the worker is or is not
up to date with trends, but whether he internally agrees that older workers (the
group he identifies with) are out of date (the stereotype).
People become their own worst enemies when they feel a stereotype threat.
Ironically, they may unconsciously exaggerate the stereotype, like an older job
applicant who talks about aging, rambles during the conversation, and discloses
too much.9 Second, they may over-identify with the stereotype. For example,
studies of unemployed and underemployed workers have suggested they experience the stereotyped identity of nonworkers as lazy and aimless. Even when reemployed, they often retain the stereotype threat of their earlier status.10 Third,
people may over-compensate for the stereotype threat they feel. A Hispanic who
tries to be as busy as possible at work and rushes conspicuously around the office
may be attempting to overcome a stereotype threat of Hispanics as slower workers. This may happen even if the workplace has many ethnic minority employees, since minorities perceive stereotypes about each other.11 Lastly, people may
perform differently when reminded of their stereotyped group. For instance,
older adults may not perform as well on memory tests when they are reminded
beforehand of their older status, evoking stereotype threat.12
Stereotype threat has serious implications for the workplace. Employees
who feel it may have lower performance, lower satisfaction, negative job attitudes, decreased engagement, decreased motivation, higher absenteeism, more
health issues, and higher turnover intentions.13 Thankfully, this is something
we can combat in the workplace by treating employees as individuals, and not
Diversity in Organizations
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85
highlighting group differences. The following organizational changes can be
successful in reducing stereotype threat: increasing awareness of how stereotypes may be perpetuated, reducing differential and preferential treatment
through objective assessments, banning stereotyped practices and messages,
confronting micro-aggressions against minority groups, and adopting transparent practices that signal the value of all employees.14
PersoNal INveNTory assessmeNTs
P
I
A
Intercultural Sensitivity Scale
PERSONAL
INVENTORY
ASSESSMENT
Are you aware of intercultural dynamics? Take this PIA to assess your intercultural sensitivity.
Discrimination in the Workplace
To review, rather than looking at individual characteristics, unfair discrimination assumes everyone in a group is the same. This discrimination is often very
harmful for employees, as we’ve just discussed, and for organizations.
Exhibit 2-1 provides definitions and examples of some forms of discrimination in organizations. Although many are prohibited by law and therefore are
not a part of organizations’ official policies, the practices persist. Tens of thousands of cases of employment discrimination are documented every year, and
many more go unreported. Since discrimination has increasingly come under
Exhibit 2-1
Forms of Discrimination
Type of Discrimination
Definition
Examples from Organizations
Discriminatory policies
or practices
Actions taken by representatives of the
organization that deny equal opportunity
to perform or unequal rewards for
performance.
Unwanted sexual advances and other
verbal or physical conduct of a sexual
nature that create a hostile or offensive
work environment.
Overt threats or bullying directed at
members of specific groups of employees.
Older workers may be targeted for layoffs
because they are highly paid and have lucrative
benefits.
Mockery and insults
Jokes or negative stereotypes; sometimes
the result of jokes taken too far.
Exclusion
Exclusion of certain people from job
opportunities, social events, discussions,
or informal mentoring; can occur
unintentionally.
Arab-Americans have been asked at work whether
they were carrying bombs or were members of
terrorist organizations.
Many women in finance claim they are assigned to
marginal job roles or are given light workloads that
don’t lead to promotion.
Incivility
Disrespectful treatment, including
behaving in an aggressive manner,
interrupting the person, or ignoring
his or her opinions.
Sexual harassment
Intimidation
Salespeople at one company went on company-paid
visits to strip clubs, brought strippers into the office to
celebrate promotions, and fostered pervasive sexual
rumors.
African-American employees at some companies have
found nooses hanging over their work stations.
Female lawyers note that male attorneys frequently
cut them off or do not adequately address their
comments.
Sources: J. Levitz and P. Shishkin, “More Workers Cite Age Bias after Layoffs,” The Wall Street Journal, March 11, 2009, D1–D2; W. M. Bulkeley, “A Data-Storage Titan Confronts Bias Claims,”
The Wall Street Journal, September 12, 2007, A1, A16; D. Walker, “Incident with Noose Stirs Old Memories,” McClatchy-Tribune Business News, June 29, 2008; D. Solis, “Racial Horror Stories Keep
EEOC Busy,” Knight-Ridder Tribune Business News, July 30, 2005, 1; H. Ibish and A. Stewart, Report on Hate Crimes and Discrimination against Arab Americans: The Post-September 11 Backlash,
September 11, 2001–October 11, 2001 (Washington, DC: American-Arab Anti-Discrimination Committee, 2003); A. Raghavan, “Wall Street’s Disappearing Women,” Forbes, March 16, 2009, 72–78;
and L. M. Cortina, “Unseen Injustice: Incivility as Modern Discrimination in Organizations,” Academy of Management Review 33, no. 1 (2008): 55–75.
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both legal scrutiny and social disapproval, most overt forms have faded, which
may have resulted in an increase in more covert forms like incivility or exclusion, especially when leaders look the other way.15
As you can see, discrimination can occur in many ways, and its effects can
vary depending on organizational context and the personal biases of employees. Some forms of discrimination like exclusion or incivility are especially hard
to root out because they may occur simply because the actor isn’t aware of the
effects of his or her actions. Like stereotype threat, actual discrimination can lead
to increased negative consequences for employers, including reduced productivity and organizational citizenship behavior (OCB), more conflict, increased
turnover, and even increased risk-taking behavior.16 Unfair discrimination also
leaves qualified job candidates out of initial hiring and promotions. Thus, even
if an employment discrimination lawsuit is never filed, a strong business case
can be made for aggressively working to eliminate unfair discrimination.
Whether it is overt or covert, intentional or unintentional, discrimination is
one of the primary factors that prevent diversity. On the other hand, recognizing diversity opportunities can lead to an effective diversity management program and ultimately to a better organization. Diversity is a broad term, and the
phrase workplace diversity can refer to any characteristic that makes people different from one another. The following section covers some important surfacelevel characteristics that differentiate members of the workforce.
Biographical Characteristics
2-3
Describe how the key
biographical characteristics
are relevant to oB.
biographical characteristics Personal
characteristics—such as age, gender, race,
and length of tenure—that are objective and
easily obtained from personnel records. These
characteristics are representative of surfacelevel diversity.
Biographical characteristics such as age, gender, race, and disability are some of
the most obvious ways employees differ. Let’s begin by looking at factors that are
easily definable and readily available—data that can be obtained, for the most
part, from an employee’s human resources (HR) file. Variations in surface-level
characteristics may be the basis for discrimination against classes of employees,
so it is worth knowing how related they actually are to work outcomes. As a
general rule, many biographical differences are not important to actual work
outcomes, and far more variation occurs within groups sharing biographical
characteristics than between them.
age
Age in the workforce is likely to be an issue of increasing importance during
the next decade for many reasons. For one, the workforce is aging worldwide
in most developed countries;17 by projections, 93 percent of the growth in the
labor force from 2006 to 2016 will have come from workers over age 54.18 In
the United States, the proportion of the workforce age 55 and older is 22 percent and increasing,19 and legislation has, for all intents and purposes, outlawed
mandatory retirement. Moreover, the United States and Australia, among other
countries, have laws directly against age discrimination.20 Most workers today
no longer have to retire at age 70, and 62 percent of workers age 45 to 60 plan
to delay retirement.21
The stereotypes of older workers as being behind the times, grumpy, and
inflexible are changing. Managers often see a number of positive qualities older
workers bring to their jobs, such as experience, judgment, a strong work ethic,
and commitment to quality. The Public Utilities Board, the water agency of
Singapore, reports that 27 percent of its workforce is over age 55 because older
workers bring workforce stability.22 And industries like health care, education,
government, and nonprofits often welcome older workers.23 But older workers
are still perceived as less adaptable and less motivated to learn new technology.24
Diversity in Organizations
87
Myth or Science?
bald is better
S
CHAPTER 2
urprisingly, it appears true that
bald is better for men in the workplace. A recent study showed
that observers believe a male’s shaved
head indicates greater masculinity,
dominance, and leadership potential
than longer or thinning hair. Thinning
hair was perceived as the least powerful look, and other studies have agreed
that male-pattern baldness (when
some hair remains) is not considered
advantageous. Why is this?
In some respects, the reported
youthful advantage of a shaved head
is counterintuitive. Because we have
more hair when we are young, and contemporary culture considers youthfulness a desirable characteristic in the
workplace (if you doubt this, see the
discussions on aging in this chapter), it
would make more sense for a hairless
head to be a distinct disadvantage. Yet
the media is loaded with images of powerful men with shaved heads—military
heroes, winning athletes, and action heroes. No wonder study participants declared that the men with shaved heads
were an inch taller and 13 percent
stronger than the same men with hair.
A bald head has become the hallmark of some important business
leaders, notably Jeff Bezos of Amazon,
Lloyd Blankfein of Goldman Sachs,
Marc Andreessen of Netscape, and
“Shark Tank” investor Daymond John.
Men who shave their heads report it
can give them a business advantage,
whether or not it makes them look
younger (which is debatable). According
to psychologist Caroline Keating, just
as older silver-back gorillas are “typically the powerful actors in their social
groups,” so it is in the office, where
baldness may “signal who is in charge
and potentially dangerous.” Research
professor Michael Cunningham agrees,
adding that baldness “is nature’s way
of telling the rest of the world you are a
survivor.” Men with shaved heads convey aggressiveness, competitiveness,
and independence, he adds. Will you
join the 13 percent of men who shave
their heads? Though we don’t wish to
advocate head-shaving for this reason,
it does demonstrate how biased we
continue to be in judging people by superficial characteristics. Time will tell if
this situation ever improves.
Sources: D. Baer, “People Are Psychologically Biased to See Bald Men as Dominant Leaders,” Business Insider (February
13,
2015),
http://www.businessinsider.
com/bald-men-signals-dominance-2015-2;
J. Misener, “Men with Shaved Heads Appear More Dominant, Study Finds,” The
Huffington Post (October 1, 2012), www.
huffingtonpost.com/2012/10/01/bald-mendominant-shaved-heads-study_n_1930489.
html; A. E. Mannes, “Shorn Scalps and Perceptions of Male Dominance,” Social Psychological and Personality Science, (2012), doi:
10.1177/1948550612449490; and R. E.
Silverman, “Bald Is Powerful,” The Wall Street
Journal (October 3, 2012), B1, B6.
When organizations seek individuals who are open to change and training, the
perceived negatives associated with age clearly hinder the initial hiring of older
workers and increase the likelihood they will be let go during cutbacks.
Now let’s take a look at the evidence. What effect does age actually have on
turnover, absenteeism, productivity, and satisfaction? Regarding turnover, the
older you are, the less likely you are to quit your job.25 As workers get older, they
have fewer alternate job opportunities because their skills have become more
specialized. Within organizations, older workers’ longer tenure tends to provide
them with higher wages, longer paid vacations, and benefits that may bind them
to their employers.
It may seem likely that age is positively correlated to absenteeism, but this
isn’t true. Most studies show that older employees have lower rates of avoidable absence versus younger employees.26 Furthermore, older workers do not
have more psychological problems or day-to-day physical health problems than
younger workers.27
The majority of studies have shown “virtually no relationship between age
and job performance,” according to Director Harvey Sterns of the Institute for
Life-Span Development and Gerontology.28 Indeed, some studies indicate that
older adults perform better. In Munich, a 4-year study of 3,800 Mercedes-Benz
workers found that “the older workers seemed to know better how to avoid
severe errors,” said Matthias Weiss, the academic coordinator of the study.29
Related to performance, there is a conception that creativity lessens as people
age. Researcher David Galenson, who studied the ages of peak creativity, found
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At Tofutti, maker of dairy-free products,
older employees are an integral
part of the workforce. Tofutti’s CEO
David Mintz values the experience,
work ethic, maturity, enthusiasm,
knowledge, and skills that older
workers bring to their jobs. He says
older employees have fewer absences,
make fewer mistakes, are better at
solving problems, and are willing to
work more hours.
Sources: Julio Cortez/AP images
that people who create through experimentation do “their greatest work in
their 40s, 50s, and 60s. These artists rely on wisdom, which increases with age.”30
What about age and satisfaction? Regarding life satisfaction, which we will
discuss further in later chapters, there is a cultural assumption that older people
are more prone to depression and loneliness. Actually, a study of adults ages 18
to 94 found that positive moods increased with age. “Contrary to the popular
view that youth is the best time of life, the peak of emotional life may not occur
until well into the seventh decade,” researcher Laura Carstensen said.31
Regarding job satisfaction, an important topic in Chapter 3, a review of more
than 800 studies found that older workers tend to be more satisfied with their
work, report better relationships with coworkers, and are more committed to
their organizations.32 Other studies, however, have found that job satisfaction
increases up to middle age, at which point it begins to drop off. When we separate the results by job type, though, we find that satisfaction tends to continually
increase among professionals as they age, whereas among nonprofessionals it
falls during middle age and then rises again in the later years.
In sum, we can see that the surface-level characteristic of an employee’s age
is an unfounded basis for discrimination, and that an age-diverse workforce is a
benefit to an organization.
Sex
Few issues initiate more debates, misconceptions, and unsupported opinions
than whether women perform as well on jobs as men.
The best place to begin to consider this is with the recognition that few, if any,
differences between men and women affect job performance.33 Though men
may have slightly higher math ability and women slightly higher verbal ability,
the differences are fairly small, and there are no consistent male–female differences in problem-solving ability, analytical skills, or learning ability.34 One metaanalysis of job performance studies found that women scored slightly higher
than men on performance measures.35 A separate meta-analysis of 95 leadership
studies indicated that women and men are rated equally effective as leaders.36
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Yet biases and stereotypes persist. In the hiring realm, managers are influenced by gender bias when selecting candidates for certain positions.37 For
instance, men are preferred in hiring decisions for male-dominated occupations, particularly when men are doing the hiring.38 Once on the job, men and
women may be offered a similar number of developmental experiences, but
females are less likely to be assigned challenging positions by men, assignments
that could help them achieve higher organizational positions.39 Moreover, men
are more likely to be chosen for leadership roles even though men and women
are equally effective leaders. A study of 20 organizations in Spain, for example,
suggested that men are generally selected for leadership roles that require handling organizational crises.40 According to Naomi Sutherland, senior partner in
diversity at recruiter Korn Ferry, “Consciously or subconsciously, companies are
still hesitant to take the risk on someone who looks different from their standard leadership profile.”41
Sex discrimination has a pervasive negative impact. Notably, women still
earn less money than men for the same positions,42 even in traditionally female
roles.43 In a recent experiment, experienced managers allocated 71 percent
of the fictional pay raise funds for male employees, leaving only 29 percent
for females.44 Working mothers also face “maternal wall bias,” meaning they
often are not considered for new positions after they have children, and both
men and women experience discrimination for their family caregiving roles.45
Women who receive fewer challenging assignments and development opportunities from biased managers tend to curtail their management aspirations.46
Research continues to underline that sex discrimination is detrimental to organizational performance.47
We’ve seen that there are many misconceptions and contradictions about
male and female workers. Thankfully, many countries have laws against sex discrimination including Australia, the United Kingdom, and the United States.
Other countries, such as Belgium, France, Norway, and Spain are seeking gender diversity through laws to increase the percentage of women on boards of
directors.48 Gender biases and gender discrimination are still serious issues, but
there are indications that the situation is improving.
Race and Ethnicity
Race is a controversial issue in society and in organizations. We define race as
the heritage people use to identify themselves; ethnicity is the additional set of
cultural characteristics that often overlaps with race. Typically, we associate race
with biology and ethnicity with culture, but there is a history of self-identifying for both classifications. Laws against race and ethnic discrimination are in
effect in many countries, including Australia, the United Kingdom, and the
United States.49
Race and ethnicity have been studied as they relate to employment outcomes such as hiring decisions, performance evaluations, pay, and workplace
discrimination. Individuals may slightly favor colleagues of their own race in
performance evaluations, promotion decisions, and pay raises, although such
differences are not found consistently, especially when highly structured methods of decision making are employed.50 Also, some industries have remained
less racially diverse than others. For instance, U.S. advertising and media organizations suffer from a lack of racial diversity in their management ranks even
though their client base is increasingly ethnically diverse.51
Finally, members of racial and ethnic minorities report higher levels of discrimination in the workplace.52 African Americans generally fare worse than
whites in employment decisions (a finding that may not apply outside the
United States). They receive lower ratings in employment interviews, lower job
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positive diversity climate In an organization, an environment of inclusiveness and
an acceptance of diversity.
performance ratings, less pay, and fewer promotions.53 Lastly, while this does
not necessarily prove overt racial discrimination, African Americans are often
discriminated against even in controlled experiments. For example, one study
of low-wage jobs found that African American applicants with no criminal history received fewer job offers than did white applicants with criminal records.54
As we discussed before, discrimination—for any reason—leads to increased
turnover, which is detrimental to organizational performance. While better representation of all racial groups in organizations remains a goal, an individual of
minority status is much less likely to leave the organization if there is a feeling
of inclusiveness, known as a positive diversity climate.55 A positive climate for
diversity can also lead to increased sales, suggesting there are organizational
performance gains associated with reducing racial and ethnic discrimination.56
How do we move beyond the destructiveness of discrimination? The answer
is in understanding one another’s viewpoint. Evidence suggests that some
people find interacting with other racial groups uncomfortable unless there
are clear behavioral scripts to guide their behavior,57 so creating diverse work
groups focused on mutual goals could be helpful, along with developing a positive diversity climate.
Disabilities
Workplace policies, both official and circumstantial, regarding individuals with
physical or mental disabilities vary from country to country. Countries such as
Australia, the United States, the United Kingdom, and Japan have specific laws
to protect individuals with disabilities.58 These laws have resulted in greater acceptance and accommodation of people with physical or mental impairments.
In the United States, for instance, the representation of individuals with disabilities in the workforce rapidly increased with the passage of the Americans with
Disabilities Act (ADA, 1990).59 According to the ADA, employers are required
to make reasonable accommodations so their workplaces will be accessible to
individuals with physical or mental disabilities.
The U.S. Equal Employment Opportunity Commission (EEOC), the federal
agency responsible for enforcing employment discrimination laws, classifies a
person as disabled who has any physical or mental impairment that substantially
limits one or more major life activities. One of the most controversial aspects
of the ADA is the provision that requires employers to make reasonable accommodations for people with psychiatric disabilities.60 Examples of recognized
disabilities include missing limbs, seizure disorder, Down syndrome, deafness,
schizophrenia, alcoholism, diabetes, depression, and chronic back pain. These
conditions share almost no common features, so there’s no specific definition
about how each condition is related to employment.
The impact of disabilities on employment outcomes has been explored
from a variety of perspectives. On one hand, when disability status is randomly
manipulated among hypothetical candidates, disabled individuals are rated as
having superior personal qualities like dependability.61 Another review suggested that workers with disabilities receive higher performance evaluations.
However, individuals with disabilities tend to encounter lower performance
expectations and are less likely to be hired.62 Mental disabilities may impair
performance more than physical disabilities: Individuals with such common
mental health issues as depression and anxiety are significantly more likely to
be absent from work.63
The elimination of discrimination against the disabled workforce has long
been problematic. In Europe, for instance, policies to motivate employers have
failed to boost the workforce participation rate for workers with disabilities,
and outright quota systems in Germany, France, and Poland have backfired.64
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Employees with disabilities are
valuable assets at the Anne-Sophie
Hotel in Germany, where they use their
talents and abilities in performing
kitchen and service jobs. Posing here
with Chef Serkan Guezelcoban (in
blue shoes) at the hotel’s Handicap
restaurant are some of the 18
disabled employees who work side
by side with other employees of the
hotel’s 39-member staff.
Sources: Thomas Kienzle/EPA/Landov
However, the recognition of the talents and abilities of individuals with disabilities has made a positive impact. In addition, technology and workplace advancements have greatly increased the scope of available jobs for those with all types
of disabilities. Managers need to be attuned to the true requirements of each
job and match the skills of the individual to them, providing accommodations
when needed. But what happens when employees do not disclose their disabilities? Let’s discuss this next.
hidden Disabilities
As we mentioned earlier, disabilities include observable characteristics like missing limbs, illnesses that require a person to use a wheelchair, and blindness.
Other disabilities may not be obvious, at least at first. Unless an individual decides to disclose a disability that isn’t easily observable, it can remain hidden at
the discretion of the employee. These are called hidden disabilities (or invisible
disabilities). Hidden, or invisible, disabilities generally fall under the categories of sensory disabilities (for example, impaired hearing), autoimmune disorders (like rheumatoid arthritis), chronic illness or pain (like carpal tunnel
syndrome), cognitive or learning impairments (like ADHD), sleep disorders
(like insomnia), and psychological challenges (like PTSD).65
As a result of recent changes to the Americans with Disabilities Act
Amendments Act of 2008 (ADAAA), U.S. organizations must accommodate
employees with a very broad range of impairments. However, employees must
disclose their conditions to their employers in order to be eligible for workplace
accommodations and employment protection. Since many employees do not
want to disclose their invisible disabilities, they are prevented from getting the
workplace accommodations they need in order to thrive in their jobs. Research
indicates that individuals with hidden disabilities are afraid of being stigmatized or ostracized if they disclose their disabilities to others in the workplace,
and they believe their managers will think they are less capable of strong job
performance.66
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In some ways, a hidden disability is not truly invisible. For example, a person
with undisclosed autism will still exhibit the behaviors characteristic of the condition, such as difficulty with verbal communication and lack of adaptability.67
You may observe behaviors that lead you to suspect an individual has a hidden
disability. Unfortunately, you may attribute the behavior to other causes—for
instance, you may incorrectly ascribe the slow, slurred speech of a coworker to
an alcohol problem rather than to the long-term effects of a stroke.
As for the employee, research suggests that disclosure helps all—the individual, others, and organizations. Disclosure may increase the job satisfaction and
well-being of the individual, help others understand and assist the individual to
succeed in the workplace, and allow the organization to accommodate the situation to achieve top performance.68
Other Differentiating Characteristics
2–4
explain how other differentiating characteristics factor
into oB.
The last set of characteristics we’ll look at includes tenure, religion, sexual orientation and gender identity, and cultural identity. These characteristics illustrate deep-level differences that provide opportunities for workplace diversity,
as long as discrimination can be overcome.
tenure
Except for gender and racial differences, few issues are more subject to misconceptions and speculations than the impact of seniority and tenure, meaning time
spent in a job, organization, or field.
Extensive reviews have been conducted of the seniority–productivity relationship.69 If we define seniority as time on a particular job, the evidence demonstrates a positive relationship between seniority and job productivity. So tenure,
expressed as work experience, appears to be a good predictor of employee productivity, though there is some evidence that the relationship is not linear: differences in tenure are more important to job performance for relatively new or
inexperienced employees than among those who have been on the job longer.
To use an NFL analogy, a second-year quarterback has more of an edge over a
rookie than a 10th-year quarterback has over one in his 9th year.
Religion
Not only do religious and nonreligious people question each other’s belief
systems; often people of different religious faiths conflict. There are few—if
any—countries in which religion is a nonissue in the workplace. For this reason,
employers are prohibited by law from discriminating against employees based
on religion in many countries, including Australia, the United Kingdom, and
the United States.70
Islam is one of the most popular religions in the world, and it is the majority
religion in many countries. However, in the United States, Muslims are a minority group that is growing. There are nearly 3 million Muslims in the United
States, and the number is predicted to double by 2030, when they will represent 1.7 percent of the population, according to the Pew Research Center. At
that point, there will be as many Muslims in the United States as there are Jews
and Episcopalians.71 Despite these numbers, there is evidence that people are
discriminated against for their Islamic faith even in studies. For instance, U.S.
job applicants in Muslim-identified religious attire who applied for hypothetical
retail jobs had shorter, more interpersonally negative interviews than applicants
who did not wear Muslim-identified attire.72
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Faith can be an employment issue wherever religious beliefs prohibit or
encourage certain behaviors. The behavioral expectations can be informal,
such as employees leaving work early on Christmas Eve. Or they may be systemic,
such as the Monday to Friday workweek, which accommodates a Christian tradition of not working on Sundays and a Jewish tradition of not working on
Saturdays. Religious individuals may also believe they have an obligation to
express their beliefs in the workplace, and those who do not share those beliefs
may object.
Religious discrimination has been a growing source of discrimination
claims in the United States, partially because the issues are complex. Recently,
Samantha Elauf, who was turned down for employment because she wears a
hijab, a black head scarf, sued for religious discrimination. “I learned I was not
hired by Abercrombie because I wear a head scarf, which is a symbol of modesty in my Muslim faith,” she said. She was not aware of the organization’s rule
against head coverings and did not mention her reason for the scarf. Should
employers be required to deduce why applicants dress as they do and then protect them? Even the Supreme Court is not certain.73
Sexual orientation and gender identity
While much has changed, the full acceptance and accommodation of lesbian,
gay, bisexual, and transgender (LGBT) employees remains a work in progress.
In the United States, a Harvard University study sent fictitious but realistic résumés to 1,700 actual entry-level job openings. The applications were identical
with one exception: Half mentioned involvement in gay organizations during
college, and the other half did not. The applications without the mention received 60 percent more callbacks than the ones with it.74
Perhaps as a result of perceived discrimination, many LGBT employees do
not disclose their status. For example, John Browne, former CEO of BP, hid his
sexual orientation until he was 59, when the press threatened to disclose that he
was gay. Fearing the story would result in turmoil for the company, he resigned.
Browne wrote recently, “Since my outing in 2007, many societies around the
world have done more to embrace people who are lesbian, gay, bisexual, or
transgender. But the business world has a long way to go.”75
U.S. federal law does not prohibit discrimination against employees based
on sexual orientation, though 29 states and more than 160 municipalities
do. For states and municipalities that protect against discrimination based
on sexual orientation, roughly as many claims are filed for sexual orientation
discrimination as for sex and race discrimination.76 Some other countries are
more progressive: for instance, Australia has laws against discriminating on the
basis of sexual preference, and the United Kingdom has similar laws regarding sexual orientation.77 However, the distinctions in these laws may not be
broad enough—researchers have acknowledged a new acronym, QUILTBAG,
to describe individuals who are queer/questioning, undecided, intersex, lesbian, transgender, bisexual, asexual, or gay.78
As a first step in the United States, the federal government has prohibited
discrimination against government employees based on sexual orientation. The
EEOC recently held that sex-stereotyping against lesbian, gay, and bisexual individuals represents gender discrimination enforceable under the Civil Rights Act
of 1964.79 Also, pending federal legislation against discrimination based on sexual orientation—the Employment Non-Discrimination Act (ENDA)—passed
the Senate but is not yet law.80
Even in the absence of federal legislation, many organizations have implemented policies and procedures that cover sexual orientation. IBM, once
famous for requiring all employees to wear white shirts and ties, has changed
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its ultra-conservative environment. Former vice president Ted Childs said, “IBM
ensures that people who are gay, lesbian, bisexual or transgender feel safe, welcomed and valued within the global walls of our business…. The contributions
that are made by [gay and transgender] IBMers accrue directly to our bottom
line and ensure the success of our business.”81
IBM is not alone. Surveys indicate that more than 90 percent of the Fortune
500 have policies that cover sexual orientation. As for gender identity, companies are increasingly adopting policies to govern the way their organizations
treat transgender employees. In 2001, only eight companies in the Fortune 500
had policies on gender identity. That number is now more than 250.
However, among the Fortune 1,000, some noteworthy companies do not currently have domestic-partner benefits or nondiscrimination clauses for LGBT
employees, including ExxonMobil, currently number 2 in the Fortune rankings
is it okay to be gay at work?
I’m gay, but no one at my workplace
knows it. How much should I be willing to tell? I want to be sure to have
a shot at the big positions in the firm.
— Ryan
Dear Ryan:
Unfortunately, you are right to be concerned. Here are some suggestions:
• Look for an inclusive company culture. Apple CEO Tim Cook said, “I’ve
had the good fortune to work at a
company that loves creativity and innovation and knows it can only flourish when you embrace people’s differences. Not everyone is so lucky.”
Recent research has focused on
discovering new methods to counteract a discrimination culture in the
United States, the United Kingdom,
and Australia.
• Choose your moral ground. Do you
feel you have a responsibility to
“come out” to help effect social
change? Do you have a right to keep
your private life private? The balance
is a private decision. A recent study
by the U.S. Human Rights Campaign
indicated that only half of LGBT employees nationwide disclose their
status.
• Consider your future in top management. Corporate-level leaders are
urged to be open with peers and
employees. As Ernst & Young global
vice chairperson Beth Brooke said
about her decades of staying closeted, the pressure to be “authentic”
adds stress if you are keeping your
gay status a secret.
• Weigh your options. The word from
people at the top who are gay (some
who have come out and others who
have not) is mixed. Brooke said,
“Life really did get better” after she
announced her status in a companysponsored video. Mark Stephanz, a
vice chairman at Bank of America
Merrill Lynch, agreed, remarking
that “most people still deal with you
the same way they always do.” Yet
Deena Fidas, deputy director for the
largest LGBT civil rights group in the
United States, reported that being
gay in the workplace is still “far from
being a ‘nonissue’.”
• Be aware of international and national laws. Sadly, some nations and
states are intolerant. You will need
to study the laws to be sure you will
be safe from repercussions when
you reveal your status.
So, think about your decision from
both an ethical and a self-interested
point of view. Your timing depends not
Career oBjectives
only on what you think are your ethical responsibilities, but also on your
context—where you work, the culture of
your organization, and the support of the
people within it. Thankfully, globalization is ensuring that the world becomes
increasingly accepting and fair.
Good luck in your career!
Sources: M. D. Birtel, “’Treating’ Prejudice:
An Exposure-Therapy Approach to Reducing Negative Reactions Toward Stigmatized
Groups,” Psychological Science (November
2012): 1379–86; L. Cooper and J. Raspanti,
“The Cost of the Closet and the Rewards of
Inclusion,” Human Rights Campaign report
(May 2014), http://hrc-assets.s3-websiteus-east-1.amazonaws.com//files/assets/
resources/Cost_of_the_Closet_May2014.
pdf; N. Rumens and J. Broomfield, “Gay Men
in the Police: Identity Disclosure and Management Issues,” Human Resource Management Journal (July 2012): 283–98; and
A. M Ryan and J. L. Wessel, “Sexual Orientation Harassment in the Workplace: When
Do Observers Intervene?” Journal of Organizational Behavior (May 2012): 488–509.
The opinions provided here are of the managers and authors only and do not necessarily reflect those of their organizations. The
authors or managers are not responsible for
any errors or omissions, or for the results obtained from the use of this information. In no
event will the authors or managers, or their
related partnerships or corporations thereof,
be liable to you or anyone else for any decision made or action taken in reliance on the
opinions provided here.
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of the largest U.S. companies.82 Some companies claim they do not need to
provide LGBT benefits for religious reasons. Recently, the U.S. Supreme Court
allowed that Hobby Lobby, a retail arts and crafts chain, does not need to provide contraception insurance coverage due to the religious objections of its
founding family, and many fear this ruling will pave the way for overt LGBT
discrimination by organizations.83 Moreover, some organizations that claim to
be inclusive don’t live up to the claim. For example, a recent study of five social
cooperatives in Italy indicated that these so-called inclusive organizations actually expect individuals to remain quiet about their status.84
Thus, while times have certainly changed, sexual orientation and gender
identity remain individual differences that organizations must address in eliminating discrimination and promoting diversity.
Cultural identity
We have seen that people sometimes define themselves in terms of race and ethnicity. Many people carry a strong cultural identity as well, a link with the culture
of family ancestry or youth that lasts a lifetime, no matter where the individual
may live in the world. People choose their cultural identity, and they also choose
how closely they observe the norms of that culture. Cultural norms influence
the workplace, sometimes resulting in clashes. Organizations must adapt.
Workplace practices that coincided with the norms of a person’s cultural
identity were commonplace years ago, when societies were less mobile. People
looked for work near familial homes and organizations established holidays,
observances, practices, and customs that suited the majority. Organizations
were generally not expected to accommodate each individual’s preferences.
Thanks to global integration and changing labor markets, today’s organizations do well to understand and respect the cultural identities of their employees, both as groups and as individuals. A U.S. company looking to do business
in, say, Latin America, needs to understand that employees in those cultures
expect long summer holidays. A company that requires employees to work during this culturally established break will meet strong resistance.
An organization seeking to be sensitive to the cultural identities of its
employees should look beyond accommodating its majority groups and instead
create as much of an individualized approach to practices and norms as possible. Often, managers can provide the bridge of workplace flexibility to meet
both organizational goals and individual needs.
Watch It!
If your professor has assigned this, go to the assignments section of mymanagementlab.com
to complete the video exercise titled Verizon: Diversity.
Ability
2-5
Demonstrate the relevance
of intellectual and physical
abilities to oB.
Contrary to what we were taught in grade school, we weren’t all created equal
in our abilities. For example, regardless of how motivated you are, you may not
be able to act as well as Jennifer Lawrence, play basketball as well as LeBron
James, or write as well as Stephen King. Of course, all of us have strengths and
weaknesses that make us relatively superior or inferior to others in performing
certain tasks or activities. From management’s standpoint, the challenge is to
understand the differences to increase the likelihood that a given employee will
perform the job well.
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ability an individual’s capacity to perform
the various tasks in a job.
What does ability mean? As we use the term, ability is an individual’s current
capacity to perform the various tasks in a job. Overall abilities are essentially
made up of two sets of factors: intellectual and physical.
intellectual abilities
intellectual abilities The capacity to do
mental activities—thinking, reasoning, and
problem solving.
general mental ability (GMa) an
overall factor of intelligence, as suggested by
the positive correlations among specific intellectual ability dimensions.
Exhibit 2-2
Intellectual abilities are abilities needed to perform mental activities—thinking, reasoning, and problem solving. Most societies place a high value on intelligence, and for good reason. Smart people generally earn more money and
attain higher levels of education. They are also more likely to emerge as leaders
of groups. However, assessing and measuring intellectual ability are not always
simple. People aren’t consistently capable of correctly assessing their own cognitive ability.85 IQ tests are designed to ascertain a person’s general intellectual
abilities, but the origins, influence factors, and testing of intelligence quotient
(IQ) are controversial.86 So, too, are popular college admission tests, such as the
SAT and ACT, and graduate admission tests in business (GMAT), law (LSAT),
and medicine (MCAT). The firms that produce these tests don’t claim they assess intelligence, but experts know they do.87
The seven most frequently cited dimensions making up intellectual abilities are number aptitude, verbal comprehension, perceptual speed, inductive
reasoning, deductive reasoning, spatial visualization, and memory.88 Exhibit 2-2
describes these dimensions.
Intelligence dimensions are positively correlated, so if you score high on
verbal comprehension, for example, you’re more likely to also score high
on spatial visualization. The correlations aren’t perfect, meaning people do
have specific abilities that predict important work-related outcomes when
considered individually.89 However, they are high enough that researchers
also recognize a general factor of intelligence, general mental ability (GMA).
Evidence supports the idea that the structures and measures of intellectual
abilities generalize across cultures. Someone in Venezuela or Sudan, for
instance, does not have a different set of mental abilities than a U.S. or Czech
individual. There is some evidence that IQ scores vary to some degree across
Dimensions of intellectual ability
Dimension
Description
Job Example
Number aptitude
Ability to do speedy and accurate
arithmetic
Ability to understand what is read
or heard and the relationship of
words to each other
Accountant: Computing the sales tax on a set of items
Verbal comprehension
Perceptual speed
Inductive reasoning
Deductive reasoning
Spatial visualization
Memory
Ability to identify visual similarities
and differences quickly and
accurately
Ability to identify a logical sequence
in a problem and then solve the
problem
Ability to use logic and assess the
implications of an argument
Ability to imagine how an object
would look if its position in space
were changed
Ability to retain and recall past
experiences
Plant manager: Following corporate policies on hiring
Fire investigator: Identifying clues to support a charge of arson
Market researcher: Forecasting demand for a product in the
next time period
Supervisor: Choosing between two different suggestions
offered by employees
Interior decorator: Redecorating an office
Salesperson: Remembering the names of customers
Diversity in Organizations
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97
cultures, but those differences become much smaller when we take into
account educational and economic differences.90
Jobs differ in the demands they place on intellectual abilities. Research consistently indicates a correspondence between cognitive ability and task performance.91 Where employee tasks are highly routine and there are few or no
opportunities to exercise discretion, a high IQ is not as important to performing well. However, that does not mean people with high IQs cannot have an
impact on traditionally less complex jobs.
It might surprise you that the intelligence test most widely used in hiring
decisions takes only 12 minutes to complete. It’s the Wonderlic Cognitive Ability
Test. There are different forms of the test, but each has 50 questions and the
same general construct. Here are two questions to try:
• When rope is selling at $0.10 a foot, how many feet can you buy for
$0.60?
• Assume the first two statements are true. Is the final one:
1. True.
2. False.
3. Not certain.
a. The boy plays baseball.
b. All baseball players wear hats.
c. The boy wears a hat.
The Wonderlic measures both speed (almost nobody has time to answer
every question) and power (the questions get harder as you go along), so the
average score is quite low—about 21 of 50. Because the Wonderlic is able to
provide valid information cheaply (for $5 to $10 per applicant), many organizations use it in hiring decisions, including Publix supermarkets, Manpower
staffing systems, British Petroleum (BP), and Dish satellite systems.92 Most of
these companies don’t give up other hiring tools, such as application forms or
interviews. Rather, they add the Wonderlic for its ability to provide valid data on
applicants’ intelligence levels.
While intelligence is a big help in performing a job well, it doesn’t make
people happier or more satisfied with their jobs. Why not? Although intelligent
people perform better and tend to have more interesting jobs, they are also
more critical when evaluating their job conditions. Thus, smart people have it
better, but they also expect more.93
physical abilities
physical abilities The capacity to
do tasks that demand stamina, dexterity,
strength, and similar characteristics.
Though the changing nature of work suggests intellectual abilities are increasingly important for many jobs, physical abilities have been and will remain valuable. Research on hundreds of jobs has identified nine basic abilities needed in
the performance of physical tasks.94 These are described in Exhibit 2-3. High
employee performance is likely to be achieved when the extent to which a job
requires each of the nine abilities matches the abilities of employees in that job.
In sum, organizations are increasingly aware that an optimally productive
workforce includes all types of people and does not automatically exclude anyone on the basis of personal characteristics. The potential benefits of diversity
are enormous for forward-thinking managers. For example, a pilot program of
software company SAP in Germany, India, and Ireland has found that employees with autism perform excellently in precision-oriented tasks like debugging
software.95 Of course, integrating diverse people into an optimally productive
workforce takes skill. We will discuss how to bring the talents of a diverse workforce together in the next section.
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Exhibit 2-3
nine Basic physical abilities
Strength Factors
1. Dynamic strength
2. Trunk strength
3. Static strength
4. Explosive strength
Ability to exert muscular force repeatedly or continuously
over time
Ability to exert muscular strength using the trunk
(particularly abdominal) muscles
Ability to exert force against external objects
Ability to expend a maximum of energy in one or a series of
explosive acts
Flexibility Factors
5. Extent flexibility
6. Dynamic flexibility
Ability to move the trunk and back muscles as far as possible
Ability to make rapid, repeated flexing movements
Other Factors
7. Body coordination
8. Balance
9. Stamina
Ability to coordinate the simultaneous actions of different
parts of the body
Ability to maintain equilibrium despite forces pulling off
balance
Ability to continue maximum effort requiring prolonged
effort over time
Implementing Diversity Management
Strategies
2-6
Describe how organizations
manage diversity effectively.
diversity management The process and
programs by which managers make everyone
more aware of and sensitive to the needs and
differences of others.
Having discussed a variety of ways in which people differ, we now look at how
a manager can and should manage these differences. Diversity management
makes everyone more aware of and sensitive to the needs and differences of
others. This definition highlights the fact that diversity programs include and
are meant for everyone. Diversity is much more likely to be successful when we
see it as everyone’s business than when we believe it helps only certain groups
of employees.
attracting, Selecting, Developing, and Retaining
Diverse Employees
One method of enhancing workforce diversity is to target recruitment messages
to specific demographic groups that are underrepresented in the workforce.
This means placing advertisements in publications geared toward those groups;
pairing with colleges, universities, and other institutions with significant
numbers of underrepresented minorities, as Microsoft is doing to encourage
women into technology studies;96 and forming partnerships with associations
like the Society of Women Engineers or the National Minority Supplier Development Council.
Research has shown that women and minorities have greater interest in
employers that make special efforts to highlight a commitment to diversity in
their recruiting materials. Diversity advertisements that fail to show women and
minorities in positions of organizational leadership send a negative message
about the diversity climate at an organization.97 Of course, to show the pictures,
organizations must actually have diversity in their management ranks
Diversity in Organizations
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99
Developing the talents of women is
a strategic diversity imperative for
business success at Nissan Motor
Company in Japan. Attracted by
Nissan’s commitment to equality
for women in the workplace and to
developing their careers, Li Ning of
China decided to join the company
after graduating from Tokyo University.
Sources: Franck Robichon/EPA/Newscom
Some companies have been actively working toward recruiting lessrepresented groups. Etsy, an online retailer, hosts engineering classes
and provides grants for aspiring women coders, and then hires the best.98
McKinsey & Co., Bain & Co., Boston Consulting Group, and Goldman Sachs
have similarly been actively recruiting women who left the workforce to start
families by offering phase-in programs and other benefits.99
The selection process is one of the most important places to apply diversity
efforts. Managers who hire need to value fairness and objectivity in selecting
employees and focus on the productive potential of new recruits. When managers use a well-defined protocol for assessing applicant talent and the organization
clearly prioritizes nondiscrimination policies, qualifications become far more
important in determining who gets hired than demographic characteristics.100
Individuals who are demographically different from their coworkers may be
more likely to feel low commitment and to leave, but a positive diversity climate
can aid retention. Many diversity training programs are available to employers,
and research efforts are focusing on identifying the most effective initiatives. It
seems that the best programs are inclusive in both their design and implementation.101 A positive diversity climate should be the goal since all workers appear
to prefer an organization that values diversity.
Diversity in groups
Most contemporary workplaces require extensive work in group settings. When
people work in groups, they need to establish a common way of looking at and
accomplishing the major tasks, and they need to communicate with one another often. If they feel little sense of membership and cohesion in their groups,
all group attributes are likely to suffer.
In some cases, diversity in traits can hurt team performance, whereas in others it can facilitate performance.102 Whether diverse or homogeneous teams are
more effective depends on the characteristic of interest. Demographic diversity
(in gender, race, and ethnicity) does not appear to either help or hurt team
performance in general, although racial diversity in management groups may
increase organizational performance in the right conditions.103
100
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Teams of individuals who are highly intelligent, conscientious, and interested in working in team settings are more effective. Thus, diversity on these
variables is likely to be a bad thing—it makes little sense to try to form teams
that mix in members who are lower in intelligence or conscientiousness, and
who are uninterested in teamwork. In other cases, diversity can be a strength.
Groups of individuals with different types of expertise and education are more
effective than homogeneous groups. Similarly, a group made entirely of assertive people who want to be in charge, or a group whose members all prefer to
follow the lead of others, will be less effective than a group that mixes leaders
and followers.
Regardless of the composition of the group, differences can be leveraged to
achieve superior performance. The most important factor is to emphasize the
similarities among members.104 Managers who emphasize higher-order goals and
values in their leadership style are more effective in managing diverse teams.105
Effective Diversity programs
Organizations use a variety of diversity programs in recruiting and selection
policies, as well as training and development practices. Effective, comprehensive workforce programs encouraging diversity have three distinct components.
First, they teach managers about the legal framework for equal employment opportunity and encourage fair treatment of all people regardless of their demographic characteristics. Second, they teach managers how a diverse workforce
will be better able to serve a diverse market of customers and clients. Third, they
foster personal development practices that bring out the skills and abilities of all
workers, acknowledging how differences in perspective can be a valuable way to
improve performance for everyone.106
Most negative reactions to employment discrimination are based on the idea
that discriminatory treatment is unfair. Regardless of race or gender, people are
generally in favor of diversity-oriented programs, including affirmative action
Employees of Grow Financial Credit
Union in Tampa, Florida, enjoy a lunchhour program on women executives
and their careers sponsored by the
firm’s diversity committee. Reflecting
Grow’s diverse employee mix, the
diversity programs foster the skills,
abilities, personal development, and
performance of all employees.
Sources: Cherie Diez/ZUMA Press/Newscom
Diversity in Organizations
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101
programs (AAP), to increase the representation of minority groups and ensure
everyone a fair opportunity to show their skills and abilities.
Organizational leaders should examine their workforce to determine
whether target groups have been underutilized. If groups of employees are
not proportionally represented in top management, managers should look
for any hidden barriers to advancement. Managers can often improve recruiting practices, make selection systems more transparent, and provide training for those employees who have not had adequate exposure to diversity
material in the past. The organization should also clearly communicate its
policies to employees so they can understand how and why certain practices
are followed. Communications should focus as much as possible on qualifications and job performance; emphasizing certain groups as needing more
assistance could backfire.
Finally, research indicates a tailored approach will be needed for international organizations. For instance, a case study of the multinational Finnish
company TRANSCO found it was possible to develop a consistent global philosophy for diversity management. However, differences in legal and cultural
factors across nations forced the company to develop unique policies to match
the cultural and legal frameworks of each country in which it operated.107
try It!
If your professor has assigned this, go to the assignments section of mymanagementlab.com
to complete the Simulation: Human Resources and Diversity.
Summary
This chapter looked at diversity from many perspectives. We paid particular
attention to three variables—biographical characteristics, abilities, and diversity
programs. Diversity management must be an ongoing commitment that crosses
all levels of the organization. Policies to improve the climate for diversity can be
effective, and diversity management can be learned.
Implications for Managers
●●
●●
●●
●●
●●
Understand your organization’s anti-discrimination policies thoroughly
and share them with all employees.
Assess and challenge your stereotype beliefs to increase your objectivity.
Look beyond readily observable biographical characteristics and consider
the individual’s capabilities before making management decisions; remain
open and encouraging for individuals to disclose any hidden disabilities.
Fully evaluate what accommodations a person with disabilities will need
and then fine-tune a job to that person’s abilities.
Seek to understand and respect the unique biographical characteristics of each individual; a fair but individualistic approach yields the best
performance.
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PART 2
The Individual
affirmative action Programs Have Outlived their Usefulness
COunterPOInt
POInt
U
.s. supreme Court Justice sonia sotomayor is arguably the
court’s strongest supporter of affirmative action . . . in theory.
In a recent case upholding the michigan ban on affirmative
action for underrepresented races in state university admission practices, Justice sotomayor refused to use the term. “affirmative action,”
she said, has the connotation of “intentional preferential treatment
based on race alone.” yes, it does. Isn’t that the point?
affirmative action programs (aaP) were needed to get the process of
workplace diversity started, but that was all a long time ago. The practice, now outlawed in arizona, California, Florida, michigan, Nebraska,
New Hampshire, oklahoma, and Washington, raises the percentage of
minority individuals but does not create a positive diversity climate.
Here’s why:
●●
●●
●●
Affirmative action lowers the standards for everyone by shifting the
criteria for hiring from experience, education, and abilities to quotas
based on race or other non-performance attributes. Performance
standards for the organization are then effectively lowered. Groups not
helped by the initiative will be resentful, which can lead to workplace
discrimination. Individuals “helped” into the organization also suffer
from perceptions of low self-competence (“I don’t know if I would have
made it here if not for aaP”) and stereotype threat (“I’m afraid others
can’t see me as competent because I was let in by the aaP”).
Research indicates that minorities are not helped by AAP in pursuing higher education. In fact, a large-scale study showed that
minority law students who attended schools best matched to their
lsaT scores performed better than those who went to higher-ranked
schools than their scores would warrant without affirmative action.
Some of the world’s AAPs have resulted in strife. For example, sri
lanka has suffered from civil wars partially caused by affirmative
action that further polarized the Tamils and shinalese. In africa,
the quota system to help blacks created a climate of race entitlement and marginalization of Indians. In fact, most countries have
struggled with issues arising from affirmative action policies.
affirmative action has outlived its usefulness in creating diversity, and
it’s time to create true equality by focusing on merit-based achievements.
A
ffirmative action was enacted to ensure equality, and it’s still
needed today. When the United states was considering the
issue for black minorities back in 1965, President lyndon
B. Johnson said, “you do not take a person who, for years, has been
hobbled by chains and liberate him, bring him up to the starting line of
a race and then say, ‘you are free to compete with all the others,’ and
still justly believe that you have been completely fair.” Dr. martin luther
agreed that, in order to create equal opportunity, proactive measures are
needed as long as some people remain at a disadvantage. Therefore,
what we should be asking is: are minority groups faring as well as majority groups in the United states? No, not by any indicator.
south africa has affirmative action for blacks through the equal
employment act; China has “preferential policies” that require ethnic
minorities and women be appointed to top government positions; Israel
has a class-based affirmative action policy to promote women, arabs,
blacks, and people with disabilities; India has a policy of reservation,
a form of affirmative action, for under-represented castes; sri lanka
has the standardization affirmative action policy to help those in areas
with lower rates of education; malaysia’s New economic Policy (NeP)
provides advantage for the majority group, the malays, who have lower
income; Brazil, Finland, France, New Zealand, and romania have education aaPs; Germany’s Basic law has aaPs for women and those with
handicaps; russia has quotas for women and ethnic minorities; and
Canada’s employment equity act provides affirmative action to women,
the disabled, aboriginal people, and visible minorities.
To be certain, fairness is in the eye of the beholder. affirmative action
provides opportunity, but then it is up to the individual to meet the expectations of schools or employers. as blogger Berneta Haynes wrote, “I’m not
ashamed to admit that without affirmative action, I’m not certain I would
be on the precipice of the law career that I’m at right now. as an africanamerican woman from a poor family, I have little doubt that affirmative
action helped me get into college, earn a degree, and enroll in law school.”
If we change anything about affirmative action, we should expand
the program until the achievements of underserved groups fully match
those of long-overprivileged groups.
Sources: D. Desilver, “supreme Court says states Can Ban affirmative action: 8 already Have,” Pew research Center Thinktank
(april 22, 2014), http://www.pewresearch.org/fact-tank/2014/04/22/supreme-court-says-states-can-ban-affirmativeaction-8-already-have/; B. Haynes, “affirmative action Helped me,” Inside Higher Ed (march 12, 2013), www.insidehighered.
com/views/2013/03/12/affirmative-action-helped-me-and-benefits-society-essay; D. leonhardt, “rethinking affirmative
action,” The New York Times (october 13, 2012), www.nytimes.com/2012/10/14/sunday-review/rethinking-affirmativeaction.html?pagewanted=all; l. m. leslie, D. m. mayer, and D. a. Kravitz, “The stigma of affirmative action: a stereotypingBased Theory and meta-analytic Test of the Consequences for Performance,” Academy of Management Journal 57, no. 4
(2014): 964–89; and B. Zimmer, “affirmative action’s Hazy Definitions,” The Wall Street Journal (april 26–27, 2014), C4.
With help from Wikipedia.
Diversity in Organizations
CHAPTER 2
103
cHaPter review
MyManagementLab
Go to mymanagementlab.com to complete the problems marked with this icon.
QUestiOns fOr review
2-1
2-4
2-2
2-5
2-3
2-6
What are the two major forms of workplace
diversity?
How does workplace discrimination undermine
organizational effectiveness?
How are the key biographical characteristics
relevant to OB?
How do other differentiating characteristics factor
into OB?
What are the relevant points of intellectual and
physical abilities to organizational behavior?
How can organizations manage diversity
effectively?
exPerientiaL exercise Differences
The instructor randomly assigns the class into groups of
four. It is important that group membership is truly randomly decided, not done by seating, friendships, or preferences. Without discussion, each group member first answers
the following question on paper:
2-7. How diverse is your group, on a scale of 1–10, where
1 = very dissimilar and 10 = very similar?
Putting that paper away, each person shares with the group
his or her answers to the following questions:
• What games/toys did you like to play with when you were
young?
• What do you consider to be your most sacred value
(and why)?
• Are you spiritual at all?
• Tell us a little about your family.
• Where’s your favorite place on earth and why?
Each group member then answers the following question
on paper:
2-8. How diverse is your group, on a scale of 1–10, where
1 = very dissimilar and 10 = very similar?
After groups calculate the average ratings from before and
after the discussion, they will share with the class the difference between their averages and answer the following
questions:
2-9. Did your personal rating increase after the discussion time? Did your group’s average ratings increase
after the discussion time?
2-10. Do you think that if you had more time for discussion, your group’s average rating would increase?
2-11. What do you see as the role of surface-level diversity
and deep-level diversity in a group’s acceptance of
individual differences?
etHicaL DiLemma The 30% Club in Hong Kong Aims to Uphold Board Diversity
It seems obvious that women are significantly underrepresented on the boards of Hong Kong companies.
According to the 2015 Women on Boards’ Report, published by Community Business, out of 655 board directors
of blue-chip companies in Hong Kong, only 73 of them are
women, representing only 11 percent. The corresponding percentage of female directors in the United States is
19 percent.
Fern Ngai, CEO of Community Business, believes that
there are still cultural and structural barriers that bar
women from key decision-making positions. Although
Germany just passed a law in 2015 requiring public companies to give 30 percent of board seats to women, Ngai
does not believe in mandatory quotas for female directors.
She claims that what really matters is the shift in mindset
to seek greater gender diversity.
Is there a large enough supply of board-ready women
to serve as directors? As a matter of fact, 33 percent of
senior management positions are held by women in Hong
Kong—the third-highest in the Asia Pacific region. These
female senior managers will have the potential to become
directors.
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The Individual
This is why the 30% Club Hong Kong has been formed.
It is an outreach arm of The Women’s Foundation, one
of Hong Kong’s leading non-profit-making organizations
dedicated to the advancement of women’s social status.
The purpose of the Club is to raise awareness among
business leaders of the importance of gender diversity
through empirical research, community programs, as
well as advocacy. The target is to increase the percentage
of female directors to at least 30 percent. The club has
been endorsed by the Equal Opportunities Commission
of Hong Kong.
However, changing the dominance of male directors
in Hong Kong is not easy. According to Jenny To, Talent
Management and Communications Director at Pernod
Ricard Asia in Hong Kong, the main challenge is to change
the mindset of existing board members to accept diversity.
A spokesperson for the 30% Club said that companies
with more women on their boards perform better than
those with fewer women directors. This is supported by
the Credit Suisse Research Institute’s report in 2013 that
the net income growth of firms with women directors
averaged 14 percent from 2007 to 2012, compared with
only 10 percent for companies with no female board
members. Wendy Yung, Executive Director of Hysan
Development Company, notes out that directors from a
diverse background could bring more collective insight
and enrich constructive board decision-making.
Progression of board diversity remains hopeful and
the 30 percent Club will continue to support sustainable
business-led voluntary change to improve the current
gender imbalance on corporate boards.
Questions
2-12. Given that women participate in the labor force
in roughly the same proportion as men, why do
you think women occupy so few seats on boards of
directors?
2-13. Do you agree with the quotas established in many
countries? Why or why not?
2-14. Beyond legal remedies, what do you think can
be done to increase women’s representation on
boards of directors?
Sources: 30% Club HK, “Introduction to the 30% Club Hong Kong,” http://30percentclub.org
.hk/media/pdfs/Introduction-to-the-30-percent-club.pdf; “More Women Needed on Board,”
South China Morning Post, http://www.scmp.com/article/996437/more-women-neededboard; 30% Club HK, Office Web site, http://30percentclub.org.hk/; PricewaterhouseCoopers,
http://30percentclub.org.hk/“Annual Corporate Directors Survey: The Gender Edition,” May 2015,
http://www.pwc.com/us/en/corporate-governance/publications/assets/pwc-acds-2014-the-genderedition.pdf; Grant Thornton, “Corporate Governance Review,” 2012, http://www.grant-thornton
.co.uk/Global/Publication_pdf/Corporate_Governance_Review_2012.pdf; Chartered Secretaries,
“Diversity on the Boards of Hong Kong Main Board Listed Companies,” https://www.hkics.org
.hk/media/publication/attachment/PUBLICATION_A_2333_Board%20Diversity_Full%20Report
.pdf; Hong Kong Exchanges and Clearing Limited, Consultation Paper: Board Diversity, September
2012, https://www.hkex.com.hk/eng/newsconsul/mktconsul/Documents/cp201209.pdf; George
W. Russell, “Balancing the Boards,” http://app1.hkicpa.org.hk/APLUS/2013/03/pdf/14-19Diversity.pdf; Luo Weiteng, “More Women Board Directors Fuels Company Growth in HK,”
China
Daily,
http://www.chinadaily.com.cn/hkedition/2015-03/04/content_19714310.htm;
Claire Cain Miller, “Women on Boards: Where the U.S. Ranks,” The New York Times, www.nytimes
.com/2015/03/11/upshot/women-on-boards-where-the-us-ranks.html?_r=0.
case inciDent 1 Walking the Walk
Do you want to work for Google? In some ways, who
wouldn’t? Sunny California, fabulous campus, free organic
meals, perks galore . . . oh, and challenging work with some
of the brightest minds in the field. By all accounts, Google
is a class act, a symbol of modernization.
Does Google want you to work for it? Ah, that is the
question. Eric Schmidt, a former Google CEO, and Jonathan Rosenberg, a former Google senior product manager, say Google searches for a certain type of person:
a “smart creative.” They say smart creatives are “a new
kind of animal”—and the secret ingredient to Google’s
success.
Do you think you are a smart creative? Are you an impatient, outspoken, risk taker who is easily bored? Do you
change jobs frequently? Are you intellectually flexible? Do
you have technical know-how, business knowledge, and
creativity? Do you think analytically? According to Schmidt
and Rosenberg, answering yes to these questions makes
you a smart creative. As you can see, being a smart creative
is not all positive. But it will get you hired at Google.
Diversity in Organizations
One last question: Are you male or female? Google
may be a symbol of the modernization of the workplace,
but perhaps not of the workforce. The Google workforce,
with 48,600 individuals, is a man’s world—70 percent male
overall. On the technical side, a full 83 percent of the engineering employees are male. In the management ranks, 79
percent of the managers are male. On the executive level,
only three of the company’s 36 executives are women.
Google officials say they are aware of the lack of diversity, but that their diversity initiatives have failed. However,
others report that sexist comments go unchecked and
there is a frat-house atmosphere. In fact, an interviewer at
an all-company presentation insultingly teased a man and
woman who shared an office, asking them, “Which one of
you does the dishes?”
Thankfully, Google has begun to put its smart creatives
to work on new thoughts about diversity. With the help of
social psychology research, the company sent all employees
through training on unconscious bias—our reflexive tendency to be biased toward our own groups—to force people to
consider their racist and sexist mindsets. So far, the training
seems to be making a bigger difference than former initia-
CHAPTER 2
105
tives, but the firm has a long way to go. Laszlo Bock, Google’s
top HR executive, said, “Suddenly you go from being completely oblivious to going, ‘Oh my god, it’s everywhere.’”
Critics are skeptical that Google and other large
technology firms will ever count women in their
ranks in numbers that reflect the population, though
research continues to indicate that men and women are
highly similar employees. Once Google has achieved
greater diversity than it currently has, perhaps its executives can begin to work on the pay differentials: a
recent Harvard study indicated that women computer
scientists receive 89 percent of the pay men earn for the
same jobs.
Questions
2-15. Does this article change your perception of Google
as an employer? How?
2-16. Would you agree that although Google helps to
modernize the workplace in other companies, its
own workforce is old-fashioned?
2-17. Why are older employees often neglected or
discriminated against?
Sources: S. Goldenberg, “Exposing Hidden Bias at Google,” The New York Times, September 25, 2014,
B1, B9; S. Lohr, “The Google Formula for Success,” The New York Times, September 29, 2014, B8;
N. Wingfield, “Microsoft Chief Backpedals on Women’s Pay,” The New York Times, October 10, 2014,
B7–B8; and E. Zell, Z. Krizan, and S. R. Teeter, “Evaluating Gender Similarities and Differences Using
Metasynthesis,” American Psychologist 70 (2015): 10–20.
case inciDent 2 The Encore Career
Over the past century, the average age of the workforce has
increased as medical science has continued to enhance
longevity and vitality. As we discussed in this chapter, many
individuals will work past the previously established ages of
retirement, and the fastest-growing segment of the workforce is individuals over the age of 55.
Unfortunately, older workers face a variety of discriminatory attitudes in the workplace. Researchers scanned
more than 100 publications on age discrimination to determine what types of age stereotypes were most prevalent
across studies. They found that stereotypes inferred that
older workers are lower performers. Research, on the other hand, indicates they are not, and organizations are realizing the benefits of this needed employee group.
Dale Sweere, HR director for engineering firm Stanley
Consultants, is one of the growing number of management professionals actively recruiting the older workforce.
Sweere says older workers “typically hit the ground running much quicker and they fit into the organization well.”
They bring to the job a higher skill level earned through
years of experience, remember an industry’s history, and
know the aging customer base.
Tell that to the older worker who is unemployed. Older
workers have long been sought by government contractors, financial firms, and consultants, according to Cornelia Gamlem, president of consulting firm GEMS Group
Ltd., and she actively recruits them. However, the U.S. Bureau of Labor Statistics reports that the average job search
for an unemployed worker over age 55 is 56 weeks, versus
38 weeks for the rest of the unemployed population.
Enter the encore career, a.k.a. unretirement. Increasingly, older workers who aren’t finding fulfilling positions
are seeking to opt out of traditional roles. After long careers in the workforce, an increasing number are embracing flexible, work-from-home options such as customer
service positions. For instance, Olga Howard, 71, signed
on as an independent contractor for 25–30 hours per week
with Arise Virtual Solutions, handling questions for a financial software company after her long-term career ended. Others are starting up new businesses. Chris Farrell,
author of Unretirement, said, “Older people are starting
businesses more than any other age group.” Others funnel
into nonprofit organizations, where the pay may not equal
the individual’s previous earning power, but the mission is
106
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The Individual
strong. “They need the money and the meaning,” said Encore.org CEO Marc Freedman. Still others are gaining additional education, such as Japan’s “silver entrepreneurs,”
who have benefited from the country’s tax credits for training older workers.
Individuals who embark on a second-act career often
report they are very fulfilled. However, the loss of workers
from their longstanding careers may be undesirable. “In
this knowledge economy, the retention of older workers
gives employers a competitive edge by allowing them to
continue to tap a generation of knowledge and skill,” said
Mark Schmit, executive director of the Society for Human
Resource Management (SHRM) Foundation. “New think-
ing by HR professionals and employers will be required to
recruit and retain them. Otherwise, organizations’ greatest asset will walk out the door.”
Questions
2-18. What changes in employment relationships are
likely to occur as the population ages?
2-19. Do you think increasing age diversity will create
new challenges for managers? What types of
challenges do you expect will be most profound?
2-20. How can organizations cope with differences
related to age discrimination in the workplace?
How can older employees help?
Sources: N. Eberstadt and M. W. Hodin, “America Needs to Rethink ‘Retirement,” The Wall Street Journal, March 11, 2014, A15; S. Giegerich, “Older Job-Seekers Must Take Charge, Adapt,” Chicago Tribune,
September 10, 2012, 2–3; R. J. Grossman, “Encore!” HR Magazine, July 2014, 27–31; T. Lytle, “Benefits
for Older Workers,” HR Magazine, March 2012, 53–58; G. Norman, “Second Acts After 65,” The Wall
Street Journal, September 24, 2014, A13; D. Stipp, “The Anti-Aging Revolution,” Fortune, June 14, 2010,
124–30; R. A. Posthuma and M. A. Campion, “Age Stereotypes in the Workplace: Common Stereotypes, Moderators, and Future Research Directions,” Journal of Management 35 (2009): 158–88; and P.
Sullivan, “Older, They Turn a Phone Into a Job,” The New York Times, March 25, 2014, F3.
MyManagementLab
Go to mymanagementlab.com for the following Assisted-graded writing questions:
2-21. In relation to this chapter’s Ethical Dilemma, one recent study found no link between female representation
on boards of directors and these companies’ corporate sustainability or environmental policies. The study’s
author expressed surprise at the findings. Do the findings surprise you? Why or why not?
2-22. Now that you’ve read the chapter and Case Incident 2, do you think organizations should work harder to retain
and hire older workers? Why or why not?
2-23. MyManagementLab Only – comprehensive writing assignment for this chapter.
enDnOtes
1
M. Toossi, “A Century of Change: The U.S.
Labor Force, 1950–2050,” Bureau of Labor Statistics, May 2002, www.bls.gov/opub/2002/05/
art2full.pdf.
2
U.S. Census Bureau, DataFerrett, Current
Population Survey, December 2014; S. Ricker,
“The Changing Face of U.S. Jobs,” CareerBuilder, March 26, 2015, www.thehiringsite
.careerbuilder.com/2015/03/26/9-findingsdiversity-americas-workforce.
3
L. Colley, “Not Codgers in Cardigans! Female Workforce Participation and
Ageing Public Services,” Gender Work and
Organization, May 2013, 327–48; and M. DiNatale and S. Boraas, “The Labor Force
Experience of Women from Generation X,”
Monthly Labor Review, March 2002,
1–15.
4
W. H. Frey, Diversity Explosion (Washington,
DC: Brookings Institution Press, 2014).
5
M. Toossi, “Labor Force Projections to 2020:
A More Slowly Growing Workforce,” Bureau
of Labor Statistics, January 2012, www.bls.gov/
opub/mlr/2012/01/art3full.pdf.
6
C. T. Kulik, “Spotlight on the Context:
How a Stereotype Threat Framework Might
Help Organizations to Attract and Retain
Older Workers,” Industrial and Organizational
Psychology 7, no. 3 (2014): 456–61.
7
A. H. Eagly and J. L. Chin, “Are Memberships in Race, Ethnicity, and Gender
Categories Merely Surface Characteristics?”
American Psychologist 65 (2010): 934–35.
8
W. J. Casper, J. H. Wayne, and J. G. Manegold, “Who Will We Recruit? Targeting Deepand Surface-Level Diversity with Human
Resource Policy Advertising,” Human Resource
Management 52, no. 3 (2013): 311–32.
9
C. T. Kulik, “Spotlight on the Context: How
a Stereotype Framework Might Help Organizations to Attract and Retain Older Workers.”
10
R. Melloy and S. Liu, “Nontraditional
Employment History: A Less Obvious Source
of Stereotype Threat,” Industrial and Organizational Psychology 7, no. 3 (2014): 461–66.
11
E. J. Kenny and R. B. Briner, “Stereotype Threat
and Minority Ethnic Employees: What Should
Our Research Priorities Be?” Industrial and Organizational Psychology 7, no. 3 (2014): 425–29.
12
C. T. Kulik, “Spotlight on the Context: How
a Stereotype Threat Might Help Organizations
to Attract and Retain Older Workers.”
13
J. H. Carlson and J. D. Seacat, “Multiple
Threat: Overweight/Obese Women in the
Diversity in Organizations
Workforce,” and B. J. Casad and S. M. Merritt, “The Importance of Stereotype Threat
Mechanisms in Workplace Outcomes,”
Industrial and Organizational Psychology 7, no. 3
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14
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The Individual
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