Chapter 2
Organizational
Diversity
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Slides by Ralph R. Braithwaite
2-1
Diversity in the LAFD
• What are your thoughts about the opening
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scenario?
Are there jobs that should be left to one
gender or the other? Why or why not?
Have you seen discrimination based on race?
Were the consequences as a result of the Los Angeles
Fire Department’s actions too lenient, too severe, or
just right?
Do you think the “steps to remedy the situation” are
enough? Why or why not?
Exploring Behavior in Action
2-2
Knowledge Objectives
1. Define organizational diversity and distinguish between
affirmative action and diversity management.
2. Distinguish multicultural, plural, and monolithic
organizations.
3. Describe the demographic characteristics of the U.S.
population and explain their implications for the
composition of the workplace.
4. Discuss general changes in the United States that are
increasing the importance of managing diversity effectively.
5. Understand why successfully managing diversity is
extremely important for high-involvement work
organizations.
6. Discuss the various roadblocks to effectively managing a
diverse workforce.
7. Describe how organizations can successfully manage
diversity.
2-3
Diversity Defined
A characteristic of a group of people where
differences exist on one or more relevant
dimensions such as gender.
Diversity is a group characteristic, not an
individual characteristic.
2-4
Common Dimensions
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Gender
Race
Ethnicity
Age
Religion
Social Class
Sexual Orientation
Personality
Functional Experience
Geographical Background
2-5
Quote
“The effects of diversity can result from any
attribute that people use to tell themselves that
another person is different.”
K. Y. Williams and C. A. O’Reilly
Thoughts?
2-6
Examples of Definitions
Thoughts?
2-7
Strategic Importance of
Organizational Diversity
• Improves
• Corporate culture
• Recruitment
• Relationships with clients and customers
• Builds competitive advantage
• Understand and serve diverse customer base
• Heterogeneous teams deal better with complex
problems and challenging tasks
• More commitment to organization’s mission
2-8
Affirmative Action vs.
Diversity Management
Affirmative Action
Diversity Management
Purpose
Prevent and remedy
discrimination
Assimilation
Assumes individuals will Assumes that managers and
assimilate and adapt
the organizations will change
Focus
Recruitment, mobility,
and retention
Allows all associates to reach
their full potential
Cause of
Problems
Does not address the
cause of problems
Attempts to uncover the root
causes of diversity problems
Time Frame Temporary, until
representation of
disadvantaged groups
Create an inclusive,
empowered work environment
Ongoing, permanent changes
Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity
Management Programs
2-9
Organizational Diversity
Multicultural
Organization
Plural
Organization
Monolithic
Organization
2-10
Forces of Change
• Changing workforce demographics –
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percentage by race, age and sex – Exhibit 2-2
Increase in the service economy
Global economy
Requirements for teamwork
2-11
High-Involvement Organizations
Individual
Outcomes
• Commitment to the
organization
• Job involvement
• Satisfaction
Group
Outcomes
• Decision making
• Creativity
• Complex tasks
Organizational
Outcomes
• Productivity
• Return on equity
• Market performance
2-12
Societal and Moral Outcomes
$10.5M & $8M
$192.5M
$508M
$176M
$250M
$47M
$132.5M
2-13
Laws Preventing Discrimination
Title VII of the
1964 Civil
Rights Act,
Civil Rights
Act of 1991
Age
Discrimination
in Employment
Act of 1967
Equal Pay
Act of 1963
Title I of the
Americans with
Disabilities Act
of 1990
Adapted from Exhibit 2-3: Federal Laws Preventing Employment Discrimination
2-14
The Case of France
• Religious discrimination
• Discrimination issues in hiring
• Promotional issues
• Thoughts on the policy of not collecting data on
race and ethnicity or no affirmative action laws?
• Thoughts on what these companies are doing?
Experiencing
Strategic OB
2-15
Roadblocks to Diversity
2-16
Prejudice and Discrimination
Prejudice
Discrimination
Modern Racism
2-17
Stereotypes
A generalized set of
beliefs about the
characteristics of a
group of individuals
What thoughts come to
mind when you perceive the
individuals in these
photographs?
2-18
Common Stereotypes
Women
People with
Disabilities
White Men
Black People
Japanese Men
Jewish People
Athletes
Accountants
Arab People
Adapted from Exhibit 2-4: Common Stereotypes
2-19
Stereotyping – Difficult to Stop
• Tough to dispel
• Guide what information we look
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for, process and remember
Seems to be an enduring human
quality – everyone has some
stereotypes
2-20
Women, Work and Stereotypes
• While things have improved, are there still
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gender issues in the workplace?
Are the issues faced by the women in the text
unique and unusual?
What are your thoughts about the survey
conducted by Elle and MSNBC.com?
Experiencing
Strategic OB
2-21
Social Identity
A person’s knowledge that he or she belongs to
certain social groups, where belonging to those
groups has emotional significance. Key Points:
• Person’s social identity becomes more salient and
noticeable when in the minority on an important
dimension
• Having a social identity different than the majority may
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make people feel they have to behave in ways that are
unnatural for them in certain contexts
Minority group members often fear losing their social
identity
People often evaluate others based on their membership
in social groups
2-22
Sample Self-Identity Structures
Adapted from Exhibit 2-5: Sample Self-Identity Structures
2-23
Sources of Power
Expert
Knowledge
Control
Rewards and
Resources
Formal
Position
Being
Irreplaceable
2-24
Ascribed Status
Status and power that is assigned by cultural
norms and depends on group membership
• High-status individuals speak more and use
stronger influence tactics than members of lowstatus groups
• People belonging to groups with different amounts
of power and status may avoid interacting with one
another and may form cliques with members of
their own groups
2-25
Communication Problems
• Different languages
• Different levels of fluency in the dominant
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language
Excluding those who don’t speak the language
2-26
Communication Disagreement
Among Cultures
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Willingness to openly disagree
Importance of maintaining “face” or dignity
The way “agreement” is defined
Time devoted to establishing personal
relationships
Willingness to speak assertively
Mode of communication - written or verbal
Personal space and nonverbal communication
2-27
Structural Integration
The degree to which minorities and women are
represented in all occupations within an
organization. Two levels exist – poorly integrated
and well integrated.
The next two slides show examples of each –
both organizations have approximately 35% of the
employees being female and/or minority.
2-28
Poor Structural Integration
Percentage of people
who are female and/or
racial and ethnic minority
group members
Top Management
0%
0%
2%
0%
0.5%
Middle Management
0%
1%
10%
2%
3.25%
Supervisor
0%
5%
15%
5%
6.25%
Staff
25%
25%
40%
26%
29%
Line Worker
60%
65%
80%
75%
70%
Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations
2-29
Good Structural Integration
Percentage of people
who are female and/or
racial and ethnic minority
group members
Top Management
35%
35%
35%
35%
35%
Middle Management
35%
35%
35%
35%
35%
Supervisor
35%
35%
35%
35%
35%
Staff
35%
35%
35%
35%
35%
Line Worker
35%
35%
35%
35%
35%
Adapted from Exhibit 2.6: Examples of Poorly Integrated and Well-Integrated Organizations
2-30
Roadblocks
• Poor integration creates power and status
differentials – become associated with gender
and race
• Poor integration fosters negative stereotypes
• Women and minorities who are successful may
be perceived to have token status
• Women and minorities perception – impossible
to move up
2-31
Commitment of Leaders
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Communicate through multiple channels
Personally lead all diversity efforts
Sponsor employee councils
Ensure cross-cultural communication
Be accountable for advancing diversity initiatives
2-32
Managerial
Advice
Promoting a Positive
Diversity Environment
Principles
• Pause to short circuit the emotion and reflect
• Connect with others in ways that affirm the
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Thoughts?
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importance of relationships
Question interpretations and explore blind
spots
Obtain genuine support that doesn’t
necessarily validate initial points of view but
rather helps in gaining a broader perspective
• Shift the mindset
2-33
Integration With the
Strategic Plan
Common measures of diversity effectiveness
include:
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Increased market share and new customer bases
External awards for diversity efforts
Associates’ attrition rate
Associates’ work satisfaction
Associates’ and managers’ satisfaction with
workplace climate
2-34
Associate Involvement
• Discussion groups from
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a cross-section of staff
Employee satisfaction
surveys
Cultural diversity audits
Informal employee feedback hotlines
Develop and support affinity groups – groups
that share common interests
• Provide training
2-35
Diversity Initiatives at Denny’s
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Recruiting
Retention
Development
External partnerships
Communication
Training
Staffing and infrastructure
2-36
The Strategic Lens
1. How does organizational diversity contribute
to an organization’s competitive advantage?
2. What actions are required to create diversity in
an organization, particularly in one that has
homogeneous membership at present?
3. How does diversity in an organization affect its
strategy?
2-37
Questions
2-38