CHAPTER 5
Effective management of diversity and inclusion means more than hiring diverse employees.
→ It means learning to appreciate and respond appropriately to the needs, attitudes, beliefs,
and values that diverse people bring to an organization.
→ It means correcting misconceptions about why and how various kinds of employee groups
differ from one another and finding the most effective way to use the skills and talents of
diverse employees.
The Increasing Diversity Of The Workforce And The Environment
Diversity: dissimilarities or differences among people due to
age, gender, race, ethnicity, religion, sexual orientation,
socioeconomic background, education, experience,
physical appearance, capabilities / disabilities, and any
other characteristic that is used to distinguish among
people.
Reasons why diversity is a pressing concern:
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Strong ethical imperative in many societies
implying that diverse people must receive equal
opportunities and be treated fairly and justly.
o Unfair treatment is illegal.
Effectively managing diversity can improve organizational
effectiveness.
o There are specific situations in which diversity can enhance performance (Ex: in
teams).
o Simply having a diverse workforce does not guarantee higher performance.
Diverse individuals continue to experience unfair treatments in the workplace as a result of
biases, stereotypes, and discrimination.
The glass ceiling is beginning to crack, although much work still needs to be done.
o Glass ceiling: a metaphor alluding to the invisible barriers that prevent minorities
and women from being promoted to top corporate positions.
Age
The Age Discrimination in Employment Act of 1967 prohibits age discrimination.
→ Managers need to ensure that the policies and procedures they have in place treat all workers
fairly, regardless of their ages.
Employees of diverse ages are able to learn from each other, work well together, and take
advantage of the unique perspective each has to offer.
Gender
Women and men both have substantial participation rates in the U.S. workforce (approximately
44.8% women and 55.1% men), yet women’s median weekly earnings continue to trail men’s
earnings ($843 for women compared to $1,022 for men).
Women are also underrepresented on companies’ boards of directors (they currently hold
roughly 21% of the board seats on S&P 500 companies).
→ Research conducted by consulting firms suggests that female executives outperform their
male colleagues in skills such as motivating others, promoting good communication, turning
out high-quality work, and being good listeners
→ Organizations with higher proportions of women in top management positions had
significantly better financial performance than organizations with lower proportions of female
top managers.
→ Companies with one or more women on their boards of directors performed better in terms
of returns on equity, sales, and invested capital than companies with fewer or no women on
their boards.
 Why does the glass ceiling continue to hamper the progress of women in business ?
Race And Ethnicity
The U.S. Census Bureau distinguished among the following races in the 2010 census:
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American Indian or Alaska Native (1,3%)
Black or African American (13,4%)
Chinese, Filipino, Japanese, Korean, Vietnamese, Asian Indian, other Asians (5,9%)
Native Hawaiian, Guamanian or Chamorro, Samoan, other Pacific Islander (0,2%)
White (76,5%)
other races or multi-racial (2,7%)
Ethnicity: a grouping of people based on some shared characteristic such as national origin,
language, or culture.
→ Many individuals see themselves as multiracial with various ethnicities.
The racial and ethnic diversity of the U.S. population continues to change, as does the diversity
of the workforce.
→ One of every three U.S. residents belongs to a minority group
→ In 2060 the U.S. population is projected to be close to 56% minority.
Injustices are still present.
→ Median weekly earnings for Black men are approximately 74% of median earnings for white
men
→ Median weekly earnings for Black women are approximately 86% of median earnings for
white women.
Stakeholders are diverse and expect organizational decisions and actions to reflect this
diversity.
Pressure continues to mount on networks and the media in general to increase diversity within
their ranks to reflect the diversity of the population as a whole.
Religion
Title VII of the Civil Rights Act prohibits discrimination based on religion (as well as based
on race/ethnicity, country of origin, and sex).
The White House guidelines on religious exercise and expression in the federal workplace
require that employers make reasonable accommodations for religious practices, such as
observances of holidays, as long as doing so does not entail major costs or hardships.
A key issue for managers in religious diversity is recognizing and being aware of different
religions and their beliefs, with particular attention being paid to when religious holidays fall.
→ Critical meetings should not be scheduled during a holy day for members of a certain faith,
and managers should be flexible in allowing people to have time off for religious observances.
When managers acknowledge, respect, and make even small accommodations for religious
diversity, employee loyalty is often enhanced.
→ Only about 23% of employees who feel they are victims of religious discrimination actually
file complaints, about 45% of these employees start looking for other jobs.
Capabilities / Disabilities
The Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against persons
with disabilities and requires that employers make reasonable accommodations to enable these
people to effectively perform their jobs.
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On one hand, some people with real disabilities warranting workplace accommodations are
hesitant to reveal their disabilities to their employers and claim the accommodations they
deserve.
On the other hand, some employees abuse the ADA by seeking unnecessary
accommodations for disabilities that may or may not exist.
→ Not surprising that the passage of the ADA has not increased employment rates significantly
for those with disabilities.
A key challenge for managers is to promote an environment in which employees needing
accommodations feel comfortable disclosing their need while ensuring that the
accommodations not only enable those with disabilities to effectively perform their jobs but
also are perceived to be fair by those who are not disabled.
→ Managers must educate both themselves and their employees about the disabilities, as well
as the real capabilities, of those who are disabled.
The unemployment rate for disabled workers is twice that of workers without disabilities.
Socioeconomic Background
Socioeconomical background: a combination of social class and income-related factors.
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In a strong economy, it is much easier for poor people with few skills to find jobs
In a weak economy, when companies lay off employees in hard times, people who need
their incomes the most are unfortunately often the first to lose their jobs.
In recessionary times, it is difficult for laid-off employees to find new positions.
The census bureau relies on predetermined threshold income figures, based on family size and
composition, adjusted annually for inflation, to determine the nation’s poverty level.
→ The official poverty rate in the United States in 2018 was 11.8%, or 38.1 million people.
Increasing numbers of families are facing the challenge of finding suitable child care
arrangements that enable the adults to work long hours and / or through the night to maintain
an adequate income level.
→ Managers need to be sensitive and responsive to the needs and concerns of workers who
may be less fortunate than themselves in terms of income and financial resources, childcare
and elder care options, housing opportunities, and the existence of sources of social and family
support.
→ Managers should try to give such individuals opportunities to learn, advance, and make
meaningful contributions to their organizations while improving their economic well-being.
Sexual Orientation
In 2015 the Equal Employment Opportunity Commission pronounced that workplace
discrimination on the grounds of sexual orientation is illegal, according to federal law.
Approximately 4.5% of adults in the United States, or more than 11 million U.S. residents,
self-identify as lesbian, gay, bisexual, transgender, and queer or questioning (LGBTQ).
More companies recognize the inclusion of LGBTQ employees, affirming their rights to fair
and equal treatment and providing benefits to their partners and / or spouses.
The Corporate Equality Index’s (CEI) rating criteria focus on three key components:
1. non- discrimination policies across business entities.
2. equitable benefits for LGBTQ workers and their families.
3. supporting an inclusive culture and corporate social responsibility.
Other Kinds Of Diversity
Organizations and teams need members with diverse backgrounds and experiences.
→ Illustrated by the prevalence of cross-functional teams in organizations whose members
might come from various departments such as marketing, production, finance, and sales.
Other types of diversity include attractiveness, weight, etc.
→ Managers need to ensure that all employees are treated fairly, regardless of their physical
appearance.
Managers And The Effective Management Of Diversity
Critical managerial Roles
In each of their managerial roles, managers can either promote the effective management of
diversity or derail such efforts → they are critical to this process.
People are likely to be influenced and persuaded by others who have high status.
→ Given the formal authority that managers have in organizations, they typically have more
influence than rank-and-file employees.
When managers commit to diversity, their commitment legitimizes the diversity management
efforts of others.
→ Resources are devoted to such efforts, and all members of an organization believe that their
diversity-related efforts are supported and valued.
Factors that emphasize why managers are so central to the effective management of diversity:
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Minorities often start out at a slight disadvantage due to how they are perceived by others
in organizations, particularly in work settings where they are a numerical minority.
Slight differences in treatment can accumulate and result in major disparities over time.
The Ethical Imperative To Manage Diversity Effectively
Two moral principles guide managers in their efforts to meet this imperative.
DISTRIBUTIVE JUSTICE
Distributive justice: a moral principle calling for fair distribution of pay, promotions, and other
organizational resources based on meaningful contributions that individuals have made and not
personal characteristics over which they have no control.
→ In many countries, managers have not only an ethical obligation to strive to achieve
distributive justice in their organizations but also a legal obligation to treat all employees fairly.
PROCEDURAL JUSTICE.
Procedural justice: a moral principle calling for the use of fair procedures to determine how to
distribute outcomes to organizational members.
→ Procedural justice is necessary not only to ensure ethical conduct but also to avoid costly
lawsuits.
Effectively Managing Diversity Makes Good Business Sense
→ Increases retention of valued employees, which decreases the costs of hiring replacements
for those who quit as well as ensures that all employees are highly motivated.
→ Necessary to avoid lawsuits.
Groups with various backgrounds tend to produce more creative outcomes.
If diversity is not effectively managed and turnover rates are higher for members of groups
who are not treated fairly, profitability will suffer on several counts.
→ The company experiences substantial indirect costs associated with the new hire, which can
include knowledge lost when an experienced worker leaves, time spent finding a replacement,
and time the new employee needs to get up to speed in the new job
Organizations concerned about diversity are insisting that their suppliers also support diversity.
Perception
Each manager’s interpretation of a situation or even of another person is merely an
interpretation.
Perception: the process through which people select, organize, and interpret what they see,
hear, touch, smell, and taste to give meaning and order to the world around them.
When managers’ perceptions are relatively inaccurate, managers are likely to make bad
decisions and take inappropriate actions that hurt organizational effectiveness.
→ Bad decisions concerning diversity for reasons of age, ethnicity, or sexual orientation
include
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Not hiring qualified people
Failing to promote top-performing employees, who subsequently may take their skills to
competing organizations
Promoting poorly performing managers because they have the same “diversity profile” as
the manager or managers making the decision.
Factors that influence managerial perception
Managers’ perceptions are likely to differ because managers differ in personality, values,
attitudes, and moods.
Organizational members’ perceptions of one another also are affected by their past experiences
with and acquired knowledge about people, events, and situations → information that is
organized into preexisting schemas.
Schema: an abstract knowledge structure that is stored in memory and makes possible the
interpretation and organization of information about a person, an event, or a situation.
→ Once a person develops a schema for a kind of person or event, any newly encountered
person or situation that is related to the schema activates it, and information is processed in
ways consistent with the information stored in the schema.
People tend to pay attention to information that is consistent with their schemas and to ignore
or discount inconsistent information.
→ Schemas are slow to change and that for people to change their schemas, they need to
encounter a considerable amount of contradictory information
Gender schemas: preconceived beliefs or ideas about the nature of men and women and their
traits, attitudes, behaviors, and preferences.
→ Among white middle-class Americans, the following gender schemas are prevalent: Men
are action-oriented, assertive, independent, and task-focused; women are expressive, nurturing,
and oriented toward and caring of other people.
Gender schemas can be learned in childhood and are reinforced in a number of ways in society.
Perception As A Determinant Of Unfair Treatment
Stereotype: simplistic and often inaccurate belief about the typical characteristics of particular
groups of people.
Salience effect: the tendency to focus attention on individuals who are conspicuously different
from others in a group. It results in extra attention being focused on a person who stands out
from the group mold.
→ Individuals who are salient are often perceived to be primarily responsible for outcomes and
operations and are evaluated more extremely in either a positive or a negative direction.
Overt Discrimination
Overt discrimination: knowingly and willingly denying diverse individuals access to
opportunities and outcomes in an organization.
→ Unethical and illegal.
Age-related discrimination complaints have been at record highs over the last decade.
How To Manage Diversity Effectively
Steps In Managing Diversity Effectively
SECURE TOP MANAGEMENT COMMITMENT
Top managers need to develop the correct ethical values and performance- or business- oriented
attitudes that allow them to make appropriate use of their human resources.
STRIVE TO INCREASE THE ACCURACY OF PERCEPTIONS
Managers should consciously attempt to be open to other points of view and perspectives, seek
them out, and encourage their employees to do the same.
INCREASE DIVERSITY AWARENESS
The ability to appreciate diversity requires that people become aware of other perspectives and
the various attitudes and experiences of others.
Diversity awareness programs often have these goals:
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Providing organizational members with accurate information about diversity.
Uncovering personal biases and stereotypes.
Assessing personal beliefs, attitudes, and values and learning about other points of view.
Overturning inaccurate stereotypes and beliefs about different groups.
Developing an atmosphere in which people feel free to share their differing perspectives
and points of view → even going so far as to mentally walk in other people’s shoes.
Improving understanding of others who are different from oneself.
INCREASE DIVERSITY SKILLS
Improving how managers and their employees interact with each other and improving their
ability to work with different kinds of people.
→ If all members of an organization try to interact with people they ordinarily would not,
mutual understanding is likely to be enhanced.
Diversity education can help managers and employees gain a better understanding of how
people may interpret certain kinds of comments and help employees learn how to resolve
misunderstandings.
ENCOURAGE FLEXIBILITY
Managers and their employees must be open to, and not feel threatened by, different approaches
and perspectives and must have the patience and flexibility to understand and appreciate
diverse perspectives.
Managers should also be flexible enough to incorporate the differing needs of diverse
employees.
PAY CLOSE ATTENTION TO HOW ORGANIZATIONAL MEMBERS ARE
EVALUATED
When objective indicators are not available or are inappropriate, managers should ensure that
adequate time and attention are focused on the evaluation of employees’ performance and that
evaluators are held accountable for their evaluations.
→ Vague performance standards should be avoided.
CONSIDER THE NUMBERS
If members of certain groups are underrepresented in particular kinds of jobs or units, managers
need to understand why this is the case and resolve any problems they uncover.
EMPOWER EMPLOYEES TO CHALLENGE DISCRIMINATORY BEHAVIORS,
ACTIONS, AND REMARKS
When managers or employees witness another organizational member being unfairly treated,
they should be encouraged to speak up and rectify the situation.
REWARD EMPLOYEES FOR EFFECTIVELY MANAGING DIVERSITY
If effective management of diversity is a valued organizational objective, then employees
should be rewarded for their contributions to this objective.
PROVIDE TRAINING UTILIZING A MULTIPRONGED, ONGOING APPROACH
Many managers use a multipronged approach to increase diversity awareness and skills in their
organizations
→ They use films and printed materials supplemented by experiential exercises to uncover
hidden biases and stereotypes.
→ Group exercises, role-plays, and diversity-related experiences can help organizational
members develop the skills they need to work effectively with a variety of people.
ENCOURAGE MENTORING OF DIVERSE EMPLOYEES
Mentoring: a process by which an experienced member of an organization (the mentor)
provides advice and guidance to a less experienced member (the protégé) and helps the less
experienced member learn how to advance in the organization and in their career.
Effective mentoring is more than providing instruction, offering advice, helping build skills,
and sharing technical expertise. It is equally important to develop a high-quality, close, and
supportive relationship with the protégé.
Sexual Harassment
Sexual harassment victims can be women or men, and their harassers do not necessarily have
to be of the other sex.
Unfortunately, women are the most frequent victims of sexual harassment, particularly those
in male-dominated occupations or those who occupy positions stereotypically associated with
certain gender relationships, such as a female secretary reporting to a male boss.
Sexual harassment is not only unethical but also illegal.
→ Managers have an ethical obligation to ensure that they, their coworkers, and their
employees never engage in sexual harassment, even unintentionally.
Forms Of Sexual Harassment
There are two basic forms of sexual harassment:
1. Quid pro quo sexual harassment: Asking or forcing an employee to perform sexual
favors in exchange for receiving some reward or avoiding negative consequences.
2. Hostile work environment sexual harassment: telling lewd jokes, displaying
pornography, making sexually oriented remarks about someone’s personal appearance,
and other sex-related actions that make the work environment unpleasant.
Steps Managers Can Take To Eradicate Sexual Harassment
Here are four steps managers can take to deal with the problem:
1. Develop and clearly communicate a sexual harassment policy endorsed by top
management.
▪ It should contain:
1) Examples of types of behavior that are unacceptable.
2) A procedure for employees to use to report instances of harassment
3) A discussion of the disciplinary actions that will be taken when
harassment has taken place
4) A commitment to educate and train organizational members about sexual
harassment.
2. Use a fair complaint procedure to investigate charges of sexual harassment.
▪ It should:
1) Be managed by a third party.
2) Ensue that complaints are dealt with promptly and thoroughly.
3) Protect and fairly treat victims.
4) Ensue that alleged harassers are fairly treated.
3. When it has been determined that sexual harassment has taken place, take corrective
actions as soon as possible.
4. Provide sexual harassment education and training to all organizational members,
including managers.
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