2 Chapter Diversity – the multitude of individual differences and similarities that exist among people Managing Diversity: Releasing Every Employee’s Potential 2-2 The Four Layers of Diversity Figure 2-1 Functional Level/ Classification Geographic Location Mgmt. Status Marital Status Parental Status Age Income Work Content/ Field Personal Habits Race Personality Appearance Union Affiliation Ethnicity Work Experience Work Location McGraw-Hill Sexual Orientation Physical Ability Recreational Habits Religion Educational Background Division/ Dept./ Unit/ Group Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33 Seniority © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 2-3 Affirmative Action, Valuing Diversity, and Managing Diversity Affirmative Action Valuing Diversity Managing Diversity Quantitative Qualitative Behavioral Legally Driven Ethically Driven Strategically Driven Remedial Idealistic Pragmatic Assimilation Model Diversity Model Synergy Model Opens Doors in the Organization Opens Attitudes, Minds, and the Culture Opens the System McGraw-Hill Table 2-1 © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 2-4 Affirmative Action, Valuing Diversity, and Managing Diversity Affirmative Action Resistance Due to Perceived Limits to Autonomy in Decision Making and Perceived Fears of Reverse Discrimination McGraw-Hill Valuing Diversity Resistance Due to Fear of Change, Discomfort with Differences, and Desire for Return to “Good Old Days” Table 2-1 Cont. Managing Diversity Resistance Due to Denial of Demographic Realities, the Needs for Alternative Approaches, and/or Benefits Associated with Change; and the Difficulty in Learning New Skills, Altering Existing Systems, and/or Finding Time to Work Toward Synergistic Solutions © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 2-5 Workforce Demographics Table 2-2 Cont. Percent Entrants 2000-2010 Percent Departures 2000-2010 100.0 49.6 50.4 100.0 55.4 44.6 White Non-Hispanic 60.6 77.4 African-American 13.7 11.8 Hispanic 17.9 7.2 7.8 3.6 Total Men Women Asian and Other Races McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. The Glass Ceiling Invisible barrier preventing women and minorities from advancing to top management Women Earn ~76% of what men earn in U.S. Do not equal men in pay or position in any country in the world Hold only 2% of senior management positions Minorities African American men earn ~71% of what white American men earn African American women earn ~64% of what white American men earn 2-6 Women’s explanation for the Glass Ceiling Male stereotyping, preconceptions and exclusion from informal networks 1. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. What research shows Effect of men Stereotypical beliefs Fear of losing power or of change Effect of women Human capital Stereotypical beliefs 2-7 Women’s strategies to further advancement 1. Consistently exceeding performance expectations 2. Developing a style with which male managers are comfortable 3. Seeking difficult or challenging assignments 4. Having influential mentors McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 2-8 Underemployment Underemployment the result of taking a job that requires less education, training or skills than possessed by a worker Negatively related to: Job satisfaction, psychological well-being Positively related to: McGraw-Hill Arrest rates Likelihood of becoming young, unmarried parent Absenteeism and turnover © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 2-11 Competitive Advantage of Managing Diversity Lower Costs and Improved Employee Attitudes Improved Recruiting Efforts Increased Sales, Market Share, and Corporate Profits Increased Creativity and Innovation Increased Group Problem Solving and Productivity McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Barriers to Managing Diversity Inaccurate stereotypes & prejudice Ethnocentrism An unsupportive and hostile working environment Fears of reverse discrimination Diversity not seen as organizational priority Resistance to change Specific initiatives to improve diversity management – managers’ responsibility to treat diverse employees fairly Development practices – prepare diverse employees for greater responsibility and advancement Recruitment practices – attracting all levels of qualified job applicants who are willing to accept challenging work assignments Accountability