Managing Diversity: Releasing Every Employee's Potential Chapter Two McGraw-Hill/Irwin © 2013 The McGraw-Hill Companies, Inc. All rights reserved. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LO.1 Define diversity and review the four layers of diversity. LO.2 Explain the difference between affirmative action and managing diversity. LO.3 Explain why Alice Eagly and Linda Carli believe that a woman’s career is best viewed as traveling through a labyrinth. LO.4 Review the demographic trends pertaining to racial groups, educational mismatches, and an aging workforce. 2-2 Learning Objectives (cont.) LO.5 Highlight the managerial implications of increasing diversity in the workforce. LO.6 Describe the positive and negative effects of diversity by using social categorization theory and information/decision-making theory. LO.7 Identify the barriers and challenges to managing diversity. LO.8 Discuss the organizational practices used to effectively manage diversity as identified by R Roosevelt Thomas Jr. 2-3 Defining Diversity Diversity represents the multitude of individual differences and similarities that exist among people pertains to the host of individual differences that make all of us unique and different from others 2-4 Layers of Diversity 2-5 Affirmative Action and Managing Diversity Affirmative action an artificial intervention aimed at giving management a chance to correct an imbalance, an injustice, a mistake, or outright discrimination that occurred in the past. 2-6 Affirmative Action and Managing Diversity Discrimination occurs when employment decisions about an individual are due to reasons not associated with performance or are not related to the job. 2-7 Managing Diversity Managing diversity entails enabling people to perform up to their maximum potential focuses on changing an organization’s culture and infrastructure such that people provide the highest productivity possible 2-8 Building the Business Case for Managing Diversity Organizations cannot use diversity as a strategic advantage if employees fail to contribute their full talents, abilities, motivation, and commitment. It is essential for an organization to create an environment or culture that allows all employees to reach their full potential. Managing diversity is a critical component of creating such an environment. 2-9 Increasing Diversity in the Workforce Workforce demographics statistical profiles of the characteristics and composition of the adult working population, enable managers to anticipate and adjust for surpluses or shortages of appropriately skilled individuals. 2-10 Demographic-Based Characteristics of the Workforce 1. Women navigate a labyrinth after breaking the glass ceiling 2. Racial groups are encountering a glass ceiling and perceived discrimination 3. Mismatch between workers’ educational attainment and occupational requirements 4. Generational differences in an aging workforce 2-11 Glass Ceiling Glass ceiling represents an absolute barrier or solid roadblock that prevents women from advancing to higher-level positions 2-12 Key Trends 1. Men start their careers at higher levels than women 2. Men report higher starting salaries 3. Men move up the career ladder faster and further than women 4. Men have higher career satisfaction over time than women 2-13 Causes of Differences Women face discrimination. Women spend more time handling domestic and child care issues than men. Women encounter more obstacles to their leadership and authority than men 2-14 Causes of Differences Women accumulate less continuous work experience than men because they periodically exit the workforce for family or motherhood. Women have less social capital and lower breadth of personal networks than men. 2-15 Racial Groups Are Encountering a Glass Ceiling and Perceived Discrimination Minorities in general are advancing less in the managerial and professional ranks than whites The number of race-based charges of discrimination that were deemed to show reasonable cause by the EEOC increased from 294 in 1995 to 1,061 in 2008 Minorities tend to earn less personal income than whites 2-16 Percentage Change in US Population by Race Figure 2-2 2-17 Generational Differences in an Aging Workforce By 2011, half of the US workforce will be over 50 years of age, and 80% will be over 50 by 2018. The number of people living into their 80s is increasing rapidly, and this group disproportionately suffers from chronic illness. 2-18 Generational Differences 2-19 Managing Gender-Based Diversity 1. Focus on being exceptionally competent and seek mentors or sponsors 2. Network to build social capital 3. Seek work–life balance by delegating housework or hiring domestic help 2-20 Managing Gender-Based Diversity 4. Improve your negotiating skills. 5. Take credit for your accomplishments 6. Work toward creating a partnership with your spouse that leads to a mutually supportive relationship 2-21 Managing Racially Based Diversity Negative stereotypes not only block qualified people from obtaining promotions, but they can undermine a person’s confidence in their ability to lead. 2-22 Managing Racially Based Diversity Given the projected increase in the number of Hispanics entering the workforce over the next 25 years, managers should consider progressive methods to recruit, retain, and integrate this segment of the population into their organizations. 2-23 Ways Organizations Can Motivate and Retain an Aging Workforce 1. Provide challenging work assignments that make a difference to the firm. 2. Give the employee considerable autonomy and latitude in completing a task. 3. Provide equal access to training and learning opportunities when it comes to new technology. 2-24 Ways Organizations Can Motivate and Retain an Aging Workforce 4. Provide frequent recognition for skills, experience, and wisdom gained over the years. 5. Provide mentoring opportunities whereby older workers can pass on accumulated knowledge to younger employees. 6. Ensure that older workers receive sensitive, highquality supervision. 7. Design a work environment that is both stimulating and fun. 2-25 The Positive and Negative Effects of Diverse Work Environments Social categorization theory holds that similarities and differences are used as a basis for categorizing self and others into groups, with ensuing categorizations distinguishing between one’s own in-group and one or more out-groups. People tend to like and trust in-group members more than out-group members and generally favor in-groups over out-groups 2-26 The Positive and Negative Effects of Diverse Work Environments Information/ decision-making theory proposes that diverse groups should outperform homogenous groups. 2-27 Positive Effects of Diverse Work Groups Diverse groups are expected to do a better job in earlier phases of problem solving The existence of diverse perspectives can help groups to brainstorm or uncover more novel alternatives during problem-solving activities. 2-28 Positive Effects of Diverse Work Groups Diversity can enhance the number of contacts a group or work unit has at its disposal. 2-29 Reconciling the Effects of Diverse Work Environments Demographic fault line “hypothetical dividing lines that may split a group into subgroups based on one or more attributes.” Fault lines form when work-group members possess varying demographic characteristics and negative interpersonal processes occur when people align themselves based on salient fault lines or demographic characteristics. 2-30 A Process Model of Diversity 2-31 Barriers and Challenges to Managing Diversity 1. 2. 3. 4. Inaccurate stereotypes and prejudice Ethnocentrism Poor career planning A negative diversity climate 2-32 Question? Jacques, a French national, is the CEO of French Global Empire with significant operations in Japan and the United States. Jacques recently announced that all employees of the company, no matter which part of the world they may be in, must learn French and communicate in French only. Which challenge to diversity does this represent? A.Cultural flexibility B.Polychronic time C.Cultural relativism D.Ethnocentrism 2-33 Diversity Climate Diversity climate Employees’ aggregate perceptions about an organization’s policies, practices, and procedures pertaining to diversity 2-34 Barriers and Challenges to Managing Diversity 1. An unsupportive and hostile working environment for diverse employees 2. Lack of political savvy on the part of diverse employees 3. Difficulty in balancing career and family issues 2-35 Barriers and Challenges to Managing Diversity 4. Fears of reverse discrimination 5. Diversity is not seen as an organizational priority 6. The need to revamp the organization’s performance appraisal and reward system 7. Resistance to change 2-36 Organizational Practices Used to Effectively Manage Diversity Option 1: Include/Exclude Option 2: Deny Option 3: Assimilate Option 4: Suppress 2-37 Question? A group of minority employees complained about alleged discriminatory practices to their manager. She told them to quit whining and get back to work. This is the use of _________ to manage diversity. A.Denial B.Suppression C.Isolation D.Building relationships 2-38 Organizational Practices Used to Effectively Manage Diversity (cont.) Option 5: Isolate Option 6: Tolerate Option 7: Build Relationships Option 8: Foster Mutual Adaptation 2-39 Video Case: Andre Thornton What attributes or experiences help Andre Thornton in being successful at GPI? In what ways can Thornton serve as an example for all minority individuals? Does GPI’s size help or hinder them in serving the needs of their clients? Can you draw correlations between sports and business? What are they? 2-40