Chap008 BUS137


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Managing Diversity

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Chap008 BUS137

  1. 1. McGraw-Hill/Irwin 8-1 Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Learning Objectives L01: Learn how diversity is critical organizational and managerial issue. L02: Distinguish between affirmative action and managing diversity. L03: Diversity can give organizations a competitive edge. L04: Identify challenges associated with managing a diverse workforce. 8-2
  3. 3. Learning Objectives L05: Define monolithic, pluralistic, and multicultural organizations. L06: Discuss how managers and their organizations can cultivate diversity. L07: Summarize skills and knowledge managers need to manage globally. L08: Identify ways in which cultural differences across countries influence management. 8-3
  4. 4. Managing Diversity Individuals with different backgrounds, beliefs, capabilities, and cultures. Understand and value employee differences to build a more effective and profitable organization. Valuing the connections that arise and develop between diverse employees. 8-4
  5. 5. What is diversity? Gender Age Religious affiliation Disability status Military experience Sexual orientation Educational level 8-5
  6. 6. Gender Issues Pay disparities still exist between men and women “Glass ceiling” barrier is a reality for many women Sexual harassment in the workplace has increased 8-6
  7. 7. Glass Ceiling Invisible barrier that makes it difficult for women and minorities to rise above a certain level in the organization Currently 12 women are chief executives of Fortune 500 companies (2%) 8-7
  8. 8. Sexual Harassment Conduct of a sexual nature that has negative consequences for employment Categories  Quid pro quo  submission to or rejection of sexual conduct is used as a basis for employment decision.  Hostile environment  unwelcome sexual conduct “has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.” 8-8
  9. 9. Components of a Sexual Harassment Policy1. Develop a comprehensive organization-wide policy2. Communicate it to all current and new employees.3. Conduct training sessions with supervisors to explain Title VII requirements  role in providing an environment free of sexual harassment  proper investigative procedures when charges occur. 8-9
  10. 10. Components of a Sexual Harassment Policy1. Establish formal complaint procedure without fear of retaliation.2. Act immediately when employees complain of sexual harassment.3. When an investigation supports employee charges, discipline the offender at once.4. Follow up on all cases to ensure a satisfactory resolution of the problem. 8-10
  11. 11. Minorities and Immigrants Black, Asian, and Hispanic workers hold more than one of every four U.S. jobs Asian and Hispanic workforces are fastest- growing segment, followed by African American workforce Three in ten college enrollees are people of color. Foreign-born workers make up more than 15% of the U.S. civilian labor force.  About 50% are Hispanic, and 22% are Asian. 8-11
  12. 12. What’s going on with minorities? White males no longer dominate urban workforce Managing diversity is more than eliminating discrimination Disparities remain in employment and earnings  Unemployment rates are higher for Hispanics and African Americans  Median earnings for white workers is higher than those for Hispanics and African Americans 8-12
  13. 13. Mentally and Physically DisabledPeople Largest unemployed minority population segment in the U.S. New assistive technologies make it easier for companies to comply with ADA and for people with disabilities to be productive. People with disabilities are an unexplored but fruitful labor force. 8-13
  14. 14. Tomorrow’s workers Women, Asian Americans, African Americans, and Hispanic workers growing faster than white male workers Lower birth rates in U.S. will lead to smaller labor force leading to outsourcing to firms in developing nations Median age of America’s workforce is increasing 70% of workers between the ages of 45 and 74 intend to work in retirement 8-14
  15. 15. Managing Diversity vs. Affirmative Action Managing Diversity  Goes beyond legislated mandates  Embraces proactive business philosophy that sees differences as positive Affirmative Action  Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past 8-15
  16. 16. Diversity as a competitive advantage Ability to attract and retain motivated employees Better perspective on a differentiated market Ability to leverage creativity and innovation in problem solving Enhancement of organizational flexibility 8-16
  17. 17. The challenges of managing a diverseworkforce Seeing the world from another’s perspective Diversity can create a lack of cohesiveness Communication problems People prefer to associate with others who are like themselves We learn to interpret the world in a certain way based on our backgrounds and experiences 8-17
  18. 18. Multicultural Organization Types Monolithic Organization  one with low degree of structural integration  employs few women, minorities, or other groups that differ from the majority  highly homogeneous employee population Pluralistic Organization  relatively diverse employee population  involves employees from different gender, racial or cultural backgrounds Multicultural Organization  values cultural diversity  seeks to utilize and encourage it 8-18
  19. 19. Five Components ofCultivating a Diverse Workforce1. Secure top management’s leadership and commitment2. Assess organization’s progress toward goals3. Attract employees4. Train employees in diversity5. Retain employees 8-19
  20. 20. Retain talented employees Support groups  Provide support for those excluded from the majority’s informal groups Mentoring  higher-level employees help ensure that high- potential people are introduced to top management and socialized into norms and values of the organization. 8-20
  21. 21. Successful Global Managers have… Sensitivity to cultural  Risk taking differences  Use of feedback Business knowledge  Cultural Courage to take a adventurousness stand  Desire for opportunities Ability to bring out the to learn best in people  Openness to criticism Integrity  Desire for feedback Insightfulness  Flexibility Commitment to success 8-21
  22. 22. Successful global assignments Structure assignments clearly Create clear job objectives Develop performance measurements Use effective, validated selection and screening criteria Prepare expatriates and families for assignments 8-22
  23. 23. Successful Global Assignments (cont’d) Establish ongoing communication with expatriates Anticipate repatriation to facilitate reentry when they come back home Consider developing a mentor program that will help monitor and intervene in case of trouble 8-23
  24. 24. Cultural Differences Power distance  extent to which a society accepts the fact that power in organizations is distributed unequally Individualism/collectivism  extent to which people act on their own or as a part of a group Uncertainty avoidance  extent to which people in a society feel threatened by uncertain and ambiguous situations Masculinity/Femininity  extent to which a society values quantity of life over quality of life 8-24