Modern Management 9th edition . © Prentice Hall, 2002 4-1 Objectives • • • • • A definition of diversity and an understanding of its importance in the corporate structure An understanding of the advantages of having a diverse workforce An awareness of the challenges facing managers within a diverse workforce An understanding of the strategies for promoting diversity in organizations Insights into the role of the manager in promoting diversity in the organization . © Prentice Hall, 2002 4-2 DEFINING DIVERSITY The Social Implications of Diversity Majority and Minority Groups Majority group: Hold decision-making positions Control resources and information Access system rewards Minority group: Have fewer granted rights Have lower status than majority . © Prentice Hall, 2002 4-3 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS Gaining and Keeping Market Share Cost Savings Increased Productivity and Innovation Better-Quality Management . © Prentice Hall, 2002 4-4 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS Table 4.1 Advantages of a Diverse Workforce • Improved ability to gain and keep market share • Cost savings • Increased productivity • A more innovative workforce • Minority and women employees who are more motivated • Better quality of managers • Employees who have internalized the message that “different” does not mean “less than’’ • Employees who are accustomed to making use of differing worldviews, learning styles, and approaches in the decision-making process and in the cultivation of new ideas • Employees who have developed multicultural competencies, such as learning to recognize, surface, discuss, and work through work-related issues pertaining to global, cultural, or intergroup differences • A workforce that is more resilient when faced with change . © Prentice Hall, 2002 4-5 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Changing Demographics Five demographic issues for the twenty-first century: Slowest growth since the 1930s Average age rises and new entrant pool shrinks More women enter workforce Minorities make up larger share of new entrants Immigrants represent largest share of increase . © Prentice Hall, 2002 4-6 % o f U. S. P O P U L A T I O N CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS (Black females) (Hispanic females **) (Hispanic males) (Black males) (Asian females *) (Asian males) YEARS * Includes Asians, Pacific Islanders, American Indians and Alaska Natives ** No 1978 data available for Hispanics Percentages of U.S. population over the age of 16 for selected minorities Figure 4.1 . © Prentice Hall, 2002 4-7 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Ethnocentrism and Other Negative Dynamics Ethnocentrism and Stereotyping Discrimination Tokenism and Other Challenges . © Prentice Hall, 2002 4-8 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Negative Dynamics and Specific Groups Woman Gender Roles The Glass Ceiling and Sexual Harassment Minorities Bicultural stress Role conflict Role overload Older Workers Stereotypes and Prejudices Workers with Disabilities . © Prentice Hall, 2002 4-9 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS WOMEN • Gender-role stereotypes— expectations and prejudices • Limits to organizational advancement (i.e., “glass ceiling”) • High expectations from and scrutiny by other women CHALLENGES IN COMMON • Discrimination in hiring, pay, and promotions • Pressure to conform to the majority culture at the expense of one’s own culture • Hostile or stressful work environment: — too high visibility — too low visibility (e.g., tracked into jobs with low responsibility, status, or opportunity for advancement) • Dynamics of tokenism • Seen as representative spokesperson for all members of one’s group • Isolation or lower degree of social acceptance • Lack of opportunities for mentoring and sponsorship MINORITIES • Racial stereotypes, ethnocentrism, and prejudices • Bicultural stress • High expectations from and scrutiny by other members of one’s group Negative dynamics confronting women and minorities in organizations Figure 4.2 . © Prentice Hall, 2002 4 - 10 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Hudson Institute’s Recommended Strategies Major issues: Stimulate balanced world growth Accelerate productivity increases in service industries Maintain dynamism of aging workforce Reconcile conflicting needs of women, work, and families Fully integrate minority workers into economy Improve education and skills of all workers . © Prentice Hall, 2002 4 - 11 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Equal Employment and Affirmative Action Organizational Commitment to Diversity Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action . © Prentice Hall, 2002 4 - 12 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS No diversity efforts: • Noncompliance with affirmative action & EEOC Diversity efforts based on: • Compliance with affirmative action & EEOC policies • Inconsistent enforcement & implementation (those who breach policies may not be sanctioned unless noncompliance results in legal action) • Support of policies is not rewarded; organization relies on individual managers’ interest or commitment Diversity efforts based on: • Compliance with & enforcement of affirmative action & EEOC policies • No organizational supports with respect to education, training • Inconsistent or poor managerial commitment Diversity efforts based on: • Narrowly defined affirmative action & EEOC policies combined with 1-shot education &/or training programs • Inconsistent managerial commitment; rewards not tied to effective implementation of diversity programs & goal achievement • No attention directed toward organizational climate Diversity efforts based on: • Effective implementation of affirmative action & EEOC policies • Ongoing education & training programs • Managerial commitment tied to organizational rewards • Minimal attention directed toward cultivating an inclusive & supportive organizational climate Broad-based diversity efforts based on: • Effective implementation of affirmative action & EEOC policies • Organization-wide assessment & management’s top-down commitment to diversity • Managerial commitment tied to organizational rewards • Ongoing processes of organization assessment & programs for the purpose of creating an organizational climate that is inclusive & supportive of diverse groups Organizational diversity continuum Figure 4.3 . © Prentice Hall, 2002 4 - 13 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Pluralism Jean Kim’s strategies for workforce diversity: ‘‘Golden Rule” Approach Assimilation Approach ‘‘Righting-the-Wrongs” Approach Culture-Specific Approach Multicultural Approach . © Prentice Hall, 2002 4 - 14 THE ROLE OF THE MANAGER Planning Organizing Influencing Controlling . © Prentice Hall, 2002 4 - 15 THE ROLE OF THE MANAGER Management Development and Diversity Training Basic Themes of Diversity Training Focus of training programs: Behavioral awareness Acknowledgment of biases and stereotypes Focus on job performance Avoidance of assumptions Modification of policy and procedure manuals . © Prentice Hall, 2002 4 - 16 THE ROLE OF THE MANAGER Management Development and Diversity Training (con’t) Stages in Managing a Diverse Workforce “Unconscious incompetence” “Conscious incompetence” “Consciously competent’’ “Unconscious competence” . © Prentice Hall, 2002 4 - 17 THE ROLE OF THE MANAGER Table 4.2 Organizational Challenges and Supports Related to Managing a Diverse Workforce Organizational Challenges Employee’s Difficulties in Coping with Cultural Diversity • Resistance to change • Ethnocentrism • Lack of information and misinformation • Prejudices, biases, and stereotypes Reasons Employees Are Unmotivated to Understand Cultural Differences • Lack of time and energy and unwillingness to assume the emotional risk necessary to explore issues of diversity • Absence of social or concrete rewards for investing in diversity work (e.g., lack of peer support and monetary rewards, unclear linkage between multicultural competence and career mobility) • Interpersonal and intergroup conflicts arising when diversity issues are either ignored or mismanaged Work Group Problems • Lack of cohesiveness • Communication problems • Employee stress Organizational Supports Educational Programs and Training to Assist Employees in Working Through Difficulties Top-Down Management Support for Diversity • Managers who have diversity skills and competence • Education and training • Awareness raising • Peer support • Organizational climate that support diversity • Open communication with manager about diversity issues • Recognition for employee development of diversity skills and competencies • Recognition for employee contributions to diversity goals • Organizational rewards for managers’ implementation of organizational diversity goals and objectives . © Prentice Hall, 2002 4 - 18 THE ROLE OF THE MANAGER Management Development and Diversity Training (con’t) Stages in Managing a Diverse Workforce (con’t) Understanding and Influencing Employee Responses Getting Top-Down Support Top-down support organizations boast: Skilled managers Education and diversity training programs Organization promotes diversity and fosters peer support Open communication Recognition for employees’ development Recognition for employee contributions Organizational rewards for managers’ implementation . © Prentice Hall, 2002 4 - 19 Chapter Four Questions © Prentice Hall, 2002 4 - 20