Reasons for Increasing Diversity and Multiculturalism
Figure 6.1 Increasing diversity and multiculturalism in organizations Increased aware- ness that diversity improves the quality of the workforce The globalization movement Legislation and legal action Changing demographics in the labor force
Average age of the U.S. workforce is gradually increasing and will continue to do so for the next several years.
Females were 46% of the workforce in 1994. The gender gap in the number of women in upper-management positions can be partially attributed to the discriminatory effect of the “glass ceiling” on female managers.
The ethnic composition of the U.S. workforce will change most with the increasing number of Hispanic workers and the decline in white workers.
Age Distributions Figure 6.2 1999 2025 Under 15 15 to 24 25 to 34 35 to 49 50 to 64 65 or older 21.4% 20.1% 13.9% 13.1% 14% 12.9% 23.5% 18.2% 14.6% 17.2% 12.7% 18.5% By 2025, more than one-third of the population will be over age 50: 1999 2005 2010 2015 2020 2025 40 The median age will climb to 38: 39 38 37 36 35 0 38 35.5
Dimensions of Diversity and Multiculturalism (cont’d)
Other Dimensions of Diversity
More handicapped individuals are entering the workforce.
Workforce diversity is expected to increase due to diversity in religious and political beliefs and viewpoints, lifestyles, and various other individual characteristics.
The increasing globalization of business and immigration patterns will affect workforce diversity and present challenges to managers to successfully manage diversity.
Ethnicity Distribution Trends in the U.S. Figure 6.3 2 0 2 5 1 9 9 9 W h i t e O t h e r r a c i a l o r e t h n i c g r o u p 37.6% 62.4% 28% 72% Racial or ethnic breakdown Hispanics 17.6% Blacks 13% Asians 6.2% Native Americans 0.8% Racial or ethnic breakdown Hispanics 11.5% Blacks 12.1% Asians 3.7% Native Americans 0.7% By 2025, Hispanics will be the largest minority group in the United States. The share of the population of each group now and projected in 2025
How Diversity and Multiculturalism Promote Competitive Advantage Figure 6.4 Resource acquisition argument Systems flexibility argument Creativity argument Competitive Advantage Cost argument Problem- solving argument Marketing argument
Pluralism in which every organizational group works to understand every other group.
Full structural integration such that the makeup of the organization reflects the external labor market.
Full integration of the informal network that removes barriers to entry and participation in the organization.
Absence of prejudice and discrimination .
No gap in organizational identification based on cultural identity group.
Low levels of intergroup conflict .
Toward The Multicultural Organization (cont’d)
The Multicultural Organization
Source: Based on Taylor H. Cox, “ The Multicultural Organization ,” Academy of Management Executive, May 1991, pp. 34 –47. Reprinted with permission. Figure 6.5 Pluralism Full structural integration Full integration of the informal network Absence of prejudice and discrimination No gap in organizational identification based on cultural identity group Low levels of intergroup conflict