Managing
Diversity:
Releasing Every
Employee’s
Potential
Chapter 2
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 2 Learning Objectives
1. Define diversity and review the four layers of
diversity.
2. Explain the difference between affirmative action
and managing diversity.
3. Explain why Alice Eagly and Linda Arlie believe
that a women’s career is best viewed as traveling
through a labyrinth.
4. Review the demographic trends pertaining to racial
groups, educational mismatches, and an aging
workforce.
2-2
Ch. 2 Learning Objectives (con’t)
5. Highlight the managerial implications of increasing
diversity in the workforce.
6. Describe the positive and negative effects of
diversity by using social categorization theory and
information/decision-making theory.
7. Identify the barriers and challenges to managing
diversity.
8. Discuss the organizational practices used to
effectively manage diversity as identified by R.
Roosevelt Thomas, Jr.
2-3
Understanding Diversity
Diversity: Host of individual differences that
make us similar and different from each other
Please stand up…..
If the statement made doesn’t pertain to you
have a seat!
If a statement does describe you, stand up
again!
2-4
The Four Layers of Diversity
Functional Level/
Classification
Geographic Location
Mgmt.
Status
Marital
Status
Parental
Status
Age
Income
Work
Content/
Field
Personal
Habits
Race
Personality
Appearance
Union
Affiliation
Sexual
Orientation
Ethnicity
Work
Experience
Work
Location
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
2-5
Test Your Knowledge
Sam is a 55 year-old, male Sales
Manager for XYZ corporation. He likes
to drive fast cars and is Native
American. Which layer of diversity has
not been mentioned about Sam?
A.Personality
B. Internal
C. External
D.Organizational
2-6
Affirmative Action
Goal: Prevent
discrimination
Never required to
hire unqualified
people
Your Opinion
Have affirmative action
programs been good
for society?
• A=Yes, B=No
Are affirmative action
programs still
necessary?
• A=Yes, B=No
2-7
Managing Diversity
Enables all people
to perform up to
their maximum
potential.
How can managing
diversity be a
competitive
advantage?
2-8
Increased Workforce Diversity - Women
Glass Ceiling
• Invisible barrier blocking women and
minorities from top management
positions
Women CEO’s (as of 2008):
• 12 of Fortune 500
• 24 of Fortune 1000
2-9
Navigating a Labyrinth
Women have made
great strides in
organizational power
and influence
Labyrinth – maze,
difficult to find one’s
way
Women’s careers have
similar twists, turns and
obstructions
2-10
Increased Workforce Diversity - Race
Racial minorities
are growing
• 2007 – 998 racebased charges
of
discrimination
to EEOC
2-11
Education and Personal Income
2-12
Does the US have the skills to
compete?
World’s population of college students
• 30% 30 years ago – now 14%
American students place in the middle to bottom of
the pack in comparison to international counterparts
in achievement in
• Math
• Science
• General literacy
2-13
Increased Workforce Diversity - Age
2-14
Generational Differences
2-15
Your Experience
For school group projects, it has been
easier to work with groups we could
choose rather than one’s the professor
chose.
• 1= Strongly Disagree
• 2 = Disagree
• 3 = Neutral
• 4 = Agree
• 5 = Strongly Agree
2-16
Managerial Implications - Gender
Provide developmental assignments to women
Facilitate the labyrinth-like path to career success
Women should:
• Be exceptionally competent & seek out mentors
• Build social capital
• Assist work/life balance by delegating housework
• Improve negotiating skills
• Take credit for accomplishments
• Create a partnership with spouse to be mutually
supportive
• Balance need to be assertive and communal
2-17
Managerial Implications – Race &
Education
Race
• Provide meaningful mentoring relationships to people of
color
Education-based
• Encourage students to become educated in technical
fields
• Provide remedial skills training
2-18
Managerial Implications – Age
Provide challenging work assignments that make a difference to
the firm
Give the employee considerable autonomy and latitude in
completing a task.
Provide equal access to training and learning opportunities when
it comes to new technology.
Provide frequent recognition for skills, experience, and wisdom
gained over the years.
Provide mentoring opportunities whereby older workers can
pass on accumulated knowledge to younger employees.
Ensure that older workers receive sensitive, high-quality
supervision
Design a work environment that is both stimulating and fun.
2-19
Pros and Cons of Diversity
Social categorization theory
• Similarity leads to liking and attraction
Information/Decision-Making Theory
• Diversity leads to better task-relevant
processes and decision-making
2-20
A Process Model of Diversity
2-21
Effects of Diverse Work
Environments
Gender and
racial
diversity in a
work group
fosters more
interpersonal
conflict
which leads
to
lower job
satisfaction,
higher
turnover,
and lower
productivity
2-22
Effects of Diverse Work
Environments
Demographic faultline
• Hypothetical dividing lines that may split a
group into subgroups based on one or more
attributes
Diverse groups had positive
outcomes when….
• members were open-minded, discussed and
shared information, and displayed integrative
behavior
2-23
Managing Diversity
What can
organizations do to
facilitate the POSITIVE
outcomes of diversity?
2-24
Challenges to Managing Diversity
What barriers exist
for organizations
trying to manage
diversity?
2-25
Thomas’s Generic Action Options
Responses to handling diversity issues:
Option 1: Include/Exclude
Option 2: Deny
Which ones are
Option 3: Assimilate
most effective for
Option 4: Suppress
managing
diversity?
Option 5: Isolate
Option 6: Tolerate
Option 7: Build Relationships
Option 8: Foster Mutual Adaptation
2-26