-t
#*\ L'f
l**
r**
\
\-;-
\
YT \\ *r \
Explain the implications of discrimination in
our society.
Define and summarize the origin of hate crimes'
ldentify the discriminatory patterns of institutions
Address the prevalence of discrimination in
the United States.
Discuss distribution of income and wealth
among racial and ethnic groups.
Summarize environmental justice and iden-
tify present-daY concerns.
Explain affirmation action and its effects on
discrimination.
Describe the origin and consequences of
reverse discrimination.
Compare and contrast glass ceilings, glass
walls, and glass escalators.
62
\tr'j
F
ll'--
d*#H
k
n$
*
r-\
FT
t"-
Chapter 3 Discrimination 63
"I didn't get thejob" is a frequent complaint that soon leads to reasons "I" clid nor get the
job for which I applied. Sometimes people think it's because of their race. Is discrimina-
tion still the case? Consider two pairs ofjob applicants-two women, Emily and Lakisha,
and two men, Greg and Jamal-who headed out into the job market. Two economists
sent out resumes with names that either "sound White" or "sound Black" to 1,300 job zrcls
in 'l'he Boston Globe and l'he Chicago Tiibune.
The results were startling. Welcome the Carries and Kristens but maybe not Aisha and
Thmika. \Alhite names got about one callback per 10 resumes; black names got one per 15.
Having a higheryualiq, resume featuring more skills and experience, made a \,\hite-
sounding names 30 percent more likely to elicit a callback but only 9 percent more likely for
Black-sounding names. Even ernployers who specified "equal opportunity employer" in their
advertisements showed bias.
Cetting a callback does not mean you are hired, but you certainly cannot get a job for
rvhich you are never interviewed.
It is not much better when you look for housing. Two communication scholars sent
more than 1,100 identically worded e-mail inquiries to Los Angeles-area landlords askins
about vacant apartments advertised online. The inquiries were signed randomll', with an
equal number signed Patrick McDougall, TyrellJackson, or Said Al-Rahman. The fictional
McDougall received positive or encouragine replies from 89 percent of the landlords,
while Al-Rahlnan was encouraged by about 66 percent of the landlord.s. Only 56 percent,
however, responded positively to Jackson.
"We thought there might be a discrepancy between the Anglo-sounding name and
the other two," professor william Loges said, "but we were surprised by the severity of
the reaction-especially to Tyrell Jackson. He was the only one to get any responses
directly questioning whether he could really afford the apartment" (Oregon State
University 2006).
In either study, we don't knon, from whom the negative or absence of positive responses
came, but evidently it is not easy beingJackson, Thrnika, Tyrell, or Said (Bertrand ar.rcl
Mullainathan 2004; Carpusor and Loges 2006).
Another dramatic confirmation of discrimination came with research begun by
...
1. -t
#* L'f
l**
r**
-;-
YT *r
Explain the implications of discrimination in
our society.
Define and summarize the origin of hate crimes'
ldentify the discriminatory patterns of institutions
Address the prevalence of discrimination in
the United States.
Discuss distribution of income and wealth
among racial and ethnic groups.
Summarize environmental justice and iden-
tify present-daY concerns.
2. Explain affirmation action and its effects on
discrimination.
Describe the origin and consequences of
reverse discrimination.
Compare and contrast glass ceilings, glass
walls, and glass escalators.
62
tr'j
F
ll'--
d*#H
k
n$
*
r-
FT
t"-
Chapter 3 Discrimination 63
"I didn't get thejob" is a frequent complaint that soon leads to
reasons "I" clid nor get the
job for which I applied. Sometimes people think it's because of
3. their race. Is discrimina-
tion still the case? Consider two pairs ofjob applicants-two
women, Emily and Lakisha,
and two men, Greg and Jamal-who headed out into the job
market. Two economists
sent out resumes with names that either "sound White" or
"sound Black" to 1,300 job zrcls
in 'l'he Boston Globe and l'he Chicago Tiibune.
The results were startling. Welcome the Carries and Kristens
but maybe not Aisha and
Thmika. Alhite names got about one callback per 10 resumes;
black names got one per 15.
Having a higheryualiq, resume featuring more skills and
experience, made a ,hite-
sounding names 30 percent more likely to elicit a callback but
only 9 percent more likely for
Black-sounding names. Even ernployers who specified "equal
opportunity employer" in their
advertisements showed bias.
Cetting a callback does not mean you are hired, but you
certainly cannot get a job for
rvhich you are never interviewed.
It is not much better when you look for housing. Two
communication scholars sent
more than 1,100 identically worded e-mail inquiries to Los
Angeles-area landlords askins
about vacant apartments advertised online. The inquiries were
signed randomll', with an
equal number signed Patrick McDougall, TyrellJackson, or Said
Al-Rahman. The fictional
McDougall received positive or encouragine replies from 89
percent of the landlords,
while Al-Rahlnan was encouraged by about 66 percent of the
4. landlord.s. Only 56 percent,
however, responded positively to Jackson.
"We thought there might be a discrepancy between the Anglo-
sounding name and
the other two," professor william Loges said, "but we were
surprised by the severity of
the reaction-especially to Tyrell Jackson. He was the only one
to get any responses
directly questioning whether he could really afford the
apartment" (Oregon State
University 2006).
In either study, we don't knon, from whom the negative or
absence of positive responses
came, but evidently it is not easy beingJackson, Thrnika, Tyrell,
or Said (Bertrand ar.rcl
Mullainathan 2004; Carpusor and Loges 2006).
Another dramatic confirmation of discrimination came with
research begun by
sociologist Devah Pager in 2003. She sent White, Black, ancl
Latino men out as rrained
"testers" to look for entry-level jobs in Milwaukee and New
York City that required
no experience or special training. Each tester was in his
twenties and rvas college
educated, but each one presented himself as having only a high
school diploma ancl
similarjob history.
The job-seeking experiences with different employers were
vastly different amons the
men. Why? Besides having different racial and ethnic
backsrounds, some testers incli-
cated in thejob application that they had serrled 18
5. months in jail for a felony convicrion (possession of
cocaine with intent to distribute). As you can see in
Figure 3.1, applicants with a prison record received
significantly fewer callbacks. Although a criminal
record made a dramatic difference, race was clearly
more important. In another study, she documented
that Latino job applicants were at a disadvantage
similar to that of the African American testers
(Pagea Western, and Bonikowski 2009; Paher and
Western 2012).
The differences were so pointecl that a White job
applicant with ajail record received more callbacks
for further consideration than a Black man with
no criminal record. Whiteness has a privilese even [
,-.,'
',
64 ChaPter 3 Discrimination
i; il
Proportion of lnitial Job Queries Leading to a CallbackJob
Applicant
Black male, jail time
Black male, NO jail time
White male, jail time
White male, NO jail time
6. I the
,on
Discriminotion
Discrimination in Job Seekin$
Sourcei Pager 2OO3:958 Bepr nted by permission of the
University of Chicago'
tvtrel it cornes to jail tirne; l'ace, it secnls, ^IAs llore of a
concerll to potential enlplo,r''
ers than a criminzrl birckgrouncl. It is r.ro surPrisc that an
anal,vsis of lzrbor patte rns after
releasc fiom prison fincls thirt wagcs grov at ; 2 I Percent
slorver r2rte for Black compared
to White ex-inmtttes.
,,1 expectcrl there to bc irn effect of rtrce , but I clicl not expect
it to srvarnp the results
as it rlid,,, pzrser t.ld an inrervierver. Her finclirts was
esPeci2rll,v sig,ifica.t becattse one
in three African Arnericatl men irtld oue itl six Hispar-ric men
are expectecl to serve titne
in prison cluring their lifetirne compared to one in l7 White men
(Greenhouse 2012;
Kr-oeger 2004).
en"ge.', research, rvhich was wicleh' ptrblicizecl, eventuirll,v
colltributed to a change
7. ir-r p.irli. policv. I. his 2004 Stirter of tl're Union aclclress, a'cl
specificallv refcrri,g to
pog.:e.', 1,9rk, Presiclept ()e.rse W. Btrslr annolnced a $300
rlillion monitorine pro-
grai, for ex-co,r,icts rvh, are attemptilrg to reintep;rirtc itrt'
socict,v.
Discrirni.urtio. hirs .lons hist.rl rigtt up to the present, of
t:rkins its toll oI) PeoPle'
Discrimination is t5c 4cnial crf crpporttu,ities ancl equal rights
to inclividu:rls zrncl
sroups bec:ruse of preiudicc or otller :rrbitr:rry reasons. {e
examitre the mat.rt' faccs
cil cliscrir.in2ltioll, its nrirnv victirns, ancl tl-re rlirnl, rvat's
scholat's have <locttmerltecl its
presence tocla,v in the Utlitecl States' Vc nclt onh' rettlrn to
nlore exzrtnples of-discrirni-
nation in housitrg btrt:rlso look at cliffererltial trcatllellt in
emplovrnent oPPortllnities'
{ages, r'oting,,n,ulnerability to cttt'irontncntal hazirrds, atrcl
evetr aCCeSs t6 rnembership
in private clttbs.
people in the Upitecl States fincl it clifficrrlt to see
<liscrimination as a rvidespreacl phc-
nontenon. "After all," it is often said, "these uinorities clrive
cars, hold.jobs' orvn ttreir
h.mes, and eren so to college." An rrnderstirr.rcling of
8. cliscrirnination in moclern industri-
alizecl societies such as the Unitccl States rnust begin by
clistingtrishing bet$'een relirtive
ancl absolute clcprivation.
clonflict theorists hirve saicl corrcct-l)' that it is not absolttte,
unchanging stanclards
that cleterrnine cleprivation :rncl oppression. Althotrgh
lninority grotlPs may be vie'rvecl
as having irclequate or eIen n,r,rd ir-raorres, hotrsing,
healthczrre' irnd cducational
opporturiitier, ii i, their positioir relative to sorne other group
that offers evidence of
cliscrimination.
Relative deprivation is clefinecl :rs the consciogs experiellce of
a negative discrepa trc-r'
befiveen legitirltatc expectatiorls zurcl presctrt 2rcttlalities'
After settlinS irl the United
1Oo/o 30% 40%o,r/o
Ghapter 3 Discrimination 65
Stzrtes, immigrzrnts often enjoy better material comforts and
more political freedom than
llere possible in their old cor-rntries. If they compare
themselves with rnost other people
in the United States, horvever, they will feel cleprived becatrse,
althotrgh their standarcls
9. have inrpror.ecl, the irnrnigrants still perceive relative
deprivation.
Absolute deprivation, ou the other hand, irnplies a fixed
standard based on a rninimum
levcl of strbsistcnce belolv which families should not be
expected to exist. Discrirnination
does t-tot necessarily mean absolute deprivation. AJapanese
American who is prorr.roted
to tt llt2lltaser.rtent position may still be :r victim of
discrimination if he or she hacl been
passed over for vears because of corporate reluctance to place
an Asian American in a
hiehly visible position.
Dissatisfaction also is likely to arise from feelinss of relative
depri',.atior.r. The rnernbers
of a societl'rvho f-eel most frustrated and disgruntled by the
social and economic condi-
tions ol'their lives 21re not necessarily lvorse off in an
objectil,e sense. Soci:rl scientists
have lon{r recogrrized that r,r,hat is rnost significant is hor,v
people perceive their situations.
Karl Mirrx pointed out that althotrgh the miserl' of the workers
was important in reflect-
irte their oppressed state, so was their position relative to the
rulinq class. In 1847, Marx
'vrotc, "Althotreh the enjoyr.nent of the workers has risen, the
social satisfaction that they,
have has fallen in comparison rvith the increased enjovrnent of
the capitalist" (Marx and
Enscls 1955:94).
This statement explains why the groups or individuals lvho are
ntost vocal and best
organizecl against discrimination are not necessarily in the
10. worst economic and social
situation. Horvever, they are likelr, to be those who most
strongly perceive that, relative
to others, they are not receiving their fair share. Resistance to
perceivecl discrimination,
r-ather than the actual amount of absolute discrirnination, is the
key.
Althotrgh prejudice certair.rly is not nerv in the United States,
it is receivins increased
atterttiott as it manifests itself in hate crimes in neighborhoods,
at meetings, and on
collese c:tlnpllses. The Hate Crime Statistics Act, which
became law in 1990, directs the
Depirrtrncnt of.fustice to gather data on hate or bias crirnes.
What Are Hate Crimes?
Thc goverrttnent defines an ordinary crime as a hate crime
u,hen oflenders are motivatecl
to choose a victirn becatrse of some characteristic-for example,
race, ethnicity, religion,
sexrtal orientzrtion, or clisability-zrnd provide evidence that
hatrecl prompted them to
ctrtrrt't-tit the crinte . Hate crimes also are sometimes referred
to as bias t:rimcs.
The Hzrte Crirne Statistics Act creirted a national mandate to
identify such crimes,
u,hereas pre"'iously only 12 states had monitored hate crimes.
The act has since been
attrencled to include disabilities, physical and mental, as well
as sexual orientation as fac-
tors that cotrld be considered a basis for hate crimes.
In 2012, larv enfbrcement asencies released hate crime data
11. submitted bv police zruen-
cies. Er"ert thotrgh 112nv, trl?ov hate crimes are not reported
(f'erver than one in ser,en
particiPilting asetrcies reported an incident), a stasgering
number of offenses that come
to la{ asencics' attention were motivated by hate. While most
incidents receive relatir.ely
littlc attention, son)e become the attention of headlines and
online sites for days. Strch
{as the case in 2009 rvl-rer-r a Mary,land man with a long
history of ties to neo-Nazi groups
rvalkecl into the [.1.S. Holocaust Memorial Museum in
Vashington, DC, and opened fire,
killing a security guard.
66 ChaPter 3 Discrimination
Olfrcial rePorts tlotecl more
than 6'20O' h:rte crimes illi(i ri''-'-
sexual.,.,tln""iJi'-tllat"t'i"zoii'LtinclicateclinFigure3'2'rirce$rt'
orientation Ethnicitv z Disabirity ;::;;;;';"
".""i"o'i.,'1*i*:lli",Xo,J,ifri:lilt:Ii'.ff:::l--i'
*u,,r,on""'''i?;'"'
*ii;n-
:l:,:l:,,::iljl],1;lr::::i,,'.:,,;i, i;il:l':]::l'lllllll,liiill'1,;)lll.?5i,:"
Race 1ffi;".1,:,[{:1.'J;:'.';illili i""*,
'il';.,;;:];'-i"'n'tu'-a
,,',,.,,,,,,,,
, , ,,..,,,r.
12. rii" a"+',*iLTi.,:iili]l::;l^tc crimes are clirectecl bv .rct.bers
o{'t'e
'rri'u,i.,r;,,,":.',,:,,-,.;i'i
il:iffi'n*** ;:f,n1,,, *;:IS"".:ilX:,.].:T,*lti-qli
Llate crinres, excePt ft"-'tlott ttrat
irre. nrost l'rorriflc' receive
littlc'
Distribution of Reported
Hate crimes
"J;';;i'"'-'' ^'-'a'"''"iwnitt
inciclcnts probrrbll teceirc
crctr
source:lncidentsreportedtor20ll
inFederal Bureau it"
"t*utt'tr'"'"at"'t"tt
k't''u' tlo bottncl'rties (I)ellurtul('tlt
or
of lnvestigation2ol2.
)r zv, rrr "--
Jrtstice 2,11;,'itt
2007)'
Thc ollicial '"p.."'i'"t:l'rlt('
u' t'i"'t'in'l'l :rPpert. ttr lt'cr'nf;:l:'lli':li'lli'Jil'I,i:'
13. !ffi .,,'"":T
";";::i,;l *ilil,Tilx ;:H l: I il l I'i il I.' ::;;, r,.,. " "
r v h.,, f c, f
;;;; ;;r ;;i',., ". It"y:l *l;t,5 ;. *j;[:*; : i*:,.l$f :[ : i, :]: i':j:':i'i:i:
il,,ifl'L'* J: liil:, :,T::; *;;';i;i: ;' ( H arrorv
2 00 5 ; P e rrv 2 00 3 )
Natiorrzrllegislatiorlanclpublicitl,havetrradellrttet:rim,catneirni
rlgfttlterrrr,andrve
:rrebeginningtorecoglli,"ih"victimizaticlt.'."*".'.."arr.it,lrstrchirr
ciclents.Actrrrcnt
,..,rr.,r.1 rvoulcl ,rr^i. ].,.
.
,,i"f.nt critne ^ "*J"tttnre
i{' it were nr.tivaterl bv racial
or
religicltrsbias.Althclrrul.rpassagei,..,-
,cert,lin,tlrescriotts..x,,i.l"r^ti.,rrofthept-opclslrl
i.clicates a rvilli.g.es] 'o
t."."ia"t n 'tu"'i"'*;;;" "f'':o:t1]J:"]'ntt'""''l'lltltJtll;
fecleral larv prohibirls tt't'"ttl'^"rclt'1ate1l
bY tltt'
:"-f'l:'-teligion'
'
thel'violate a teclerall.v grar2lnteed
14. t1**:i:*::litt:,lfr."^"
hzrte crimcs a.cl other acrts
of
Victirniz.etcl groups do tnore
thau expet-r
l,:Tf:::Ii::'.:i;,.ii::?
j':l:',+l;""H:;:*[*;;;a;;:i1ilx*l#fr
Asirinst Pre.ir'rclice ^;i'?;";"e'
the Sotrthcnr Povertv Lzru'
(len
,.,iJ i".rri^i, Task F,rce' - tzl .rr^rrnq har,e even set ttP
Propilga.dir sites
ttn
ktt:'T,'J$;;l'*l;::!rlii:ffi '"1':';{q,ii*ff *i',*1",x[*::.*l
:*"{u::::J:i"i"';:t*:::'x"l'nil-L.*-"*il:i-:#;x*'.:,'^m:
rechnique of hate -;;.;"Pi has
rree tr.':,)l::i:iil"lliil';Ti:lllii;;:;"*'f'l'-g r'ig""
Irrtcrnet rrscrs to cr(ate lI pliratt'
t'l.tat rt
tg. rrrrrt lt as ltltr;tssitt{,tt'le-
ttse <lirt'ctol'i"t'"tttu.-' tlf.-i' tttt"tkt
thrortgh itlstrtrttt"tttt'$''liltt""it ft'"ft.- *lto ltrtrt'
ph.nt' carrs *ete ;i'::;''i" 'r" l:l^L':ll"i;.:[ll::,,Xll'i:';::""'n "" ,".itr
Ltttrtt't
I",,r.,r,":r"n Ach *irr.'s t() altl'a(
15. t petrplc " lr discrt'rlir tlre ciril rights
r.lili *i**ru:: g[,ff ifr#'hrffi
:]]-:[;il; i "" i''r' "' i *''
iOoui, 2008; Simon {ieser-rthal
(le trter
WtrvX-,1t:f-
'i;lt*:{'':ritiil#ri'f:s'"r"y!:{t'lr*Lrt'll"t}';rr;*lt"t(;:ru?
Freq,rentr.v, "'".n:"i',,,::]i
j:lT"I:*:ilJi,,l,:::::.T"x,jlxT:,,,"'l;'H"']i",]i:':":''i*
AFter irll, is not hate rt
cri'resmaYinclrtrle^;";;;ti;;'rofhatlerlt";;;;inclivicltralororsauizat
ion'ahate
Ghapter 3 Discrimination 67
or bias critne tolarcl a minorin'is intenclecl to carrv ir rrlcssage
rvell beyoncl thc incliviclual
victirn. Whcn 2i person is irssnultecl bccause thev irre ga)' or
lcsbinn, the act is rneant tcr
terrorize all ga1' ancl lesbians. V:rnclnlizing a lnosque or
svltas()gue is me:rnt to ,arll all
Muslirns or.fcrvs th:r.t thev al'e not u,nr.ttccl ancl their
leligiorrs firith is considered ir-rfl'rior.
Itt rnanl' respects, toclzrv's hatc crimes are like thc tcrrorist
effcrrts of thc llti Klux Klan
of senerzrtions aso. Targets nral be randomly selected, brrt tl.rc
group being terrorizcd
16. is carefulll'chosen. In nraur'.jtrt'isdictions, having:r crinre
classifrecl 2rs a hilte crirne czrn
inct-ense the prrr-rishrneut. For exarnple, a misdenre:rnor like
r.anclalisnr can be increased
ttt a felottv. A Ieloltv th:rt is a hate crirne c:ln carrv r greater-
pr-ison sentelrce. These sanc-
tions rvcrc trphelcl b1'the Supreme Cotrrt in the 199i1 decision
Mitch.?lla. I,l,'7.vznsln, rvhich
recogtt izercl that gre:rter hitrrn nray be clone by l.rate-
rnotir,atecl crimes (Blazak 201 I ) .
Itrdivicltrals practice cliscrirnination in one-on-onc
cnc()ul]ters, irr-rcl instituti()lls prrlctice
clisclirnirration throllgh their daill' operations. Inclcecl, il
consensus is grou,ing toclav
th:rt instittrtional disclirnination is m,.,re significant thnn acts
comnrittcd b1'plejrrdicecl
individrrirls.
Soci:rl scientists irre particularl)' concer-ned rvith hou,
pittterlts of'empl6vr e1t, eclrr-
cation, criminal .justicc, housing, healthcare, :rnd gor,ernntcnt
oper2rtions maintain tl-re
sociirl signific:rnce of race :rncl ethnicitt,. lnstitutional
discrimination is tl.rc clcnial of
ttpporttrnities :rnd eqtral rishts tt) inclir,idtrals and erorrps that
results fr-ont the norrn:rl
operations of a socie ty.
(livil rishts acti,ist Stokell' Clarmich:rel and politic:rl scientist
Cll.rarles Hamiltcn irrc
creclite<l u'ith introchrcing the concept o[' instittrtional
r':rcisr.r.t. lndiuirlttril disoim,inct-
lron ref'ers to overt 21cts of incliviclual Ihites ergainst
indi',,idual Blacks; C:rrnricl.rael and
Han-riltorr rcscrr,ed the term instiLtrLional rutism for co,ert
17. acts cornmitted collectir,elv
against att etrtirc group. Frrrtn this perspecti,e, cliscrirrination
can takc plirce nithotrt zrr-r
indiviclu:rl intencling to deprive otl)crs of privileues aud cven
u,ithout the inclividual beins
21vrlre that others are beins deprir,ecl (Ttrlc iurd Hirr.r.rilton
1992).
Hon'cau cliscrinrination be rviclespread :rncl trnconsciotrs irt
the s2ure tirnc? A feu.docr-r-
tnentecl cxirmples of' instittrtionirl discrintination ftrllorl,:
1. Standarcls for assessing crcdit r-isks n ork asainst Afric:ln
Americans and Hispanics
rvho scck to establisl-r bttsinesses because nr:rnr" lack
conr,entional creclit refer-
ellccs. Bttsitresses in lou.income ilrcas rvhere these eroups
often reside zrlso have
rrrrrr'h higlrer insrrrance costs.
2. IQ testing favors rnicldlc-clzrss chilclren, espcciallv the
{rhitcr middle class, because
of the tlpcs of questions inclucled.
3. The entire crintinirljustice s,stem, fronr the patrol officer to
the-iudge ancljurl,,
is clorninirted b1,Wl-rites rvl.ro fincl it diflicrrlt to understar-
rd lil'e in p()'ertv areas.
4. Hirine practiccs often reqtrirc several veitrs' experience :tt
.jribs onl1, recentlv
opened to membe rs of subordinate srorrps.
5. Many'jobs atrtomatically elirninate pcople u,ith ['elony r-
ecorrls or past dnrg offbnses,
a practice that clisproportior-ratelv r-ecltrces ernplol'rrent
18. opportrrr.ritics fcir people of
color.
Instittrtionirl discrirnination is so svstemic that it t:rkes on the
pattenr of rvhat has been
terrnecl "u'oodrvork racism" irt that r:rcist otrtcomes becorne so
rvidespreircl tl-rat Afiicirr-r
Attrericatrs, Latinos, Asian Americans, and others endure thern
as a part of ever-vdiry lif'e
(Feaeirt and McKinnet, 2003).
*/' i!^
&.ff ffi cheon,:
Roce-Ethnicity ond
Mortgoges
the
on : Roce
ond Aoss in the Americon
Crimi n ol J u stice System
68 ChaPter 3 Discrimination
At the beginning of this chapter'
rve tlotecl horr' eurPlolers r'ri'---:: - -
* i*'1 " *;: ti:xinT.?;:tril,T 1'.H:5:':1':rl'"T;ilJ'i "''' i
und Latino job appttcants ar
r rrru'
19. institutional discrimination'
" " i ... r ",,, i s' ^ : $ :,1,:1,,?ll :HIII ["^T r:,il: J i |!J qiii J Tl
ill'l'Jli:; ";
;
uu*;H'1ffi l''t"''*,.g
ffi
'
: ffi T#
*lT-':1:'#'^*'lT:
DespitethepositivesteP,concer,,s,o},loveranotherpotentialexarnp
leofinstitu-
tional cliscrimination-t-h.'..quir.*.n, "t,l"t"**t'-"-i"utd
ID to vote' Eleven states
erracred laws requirinn'"",".Jro
show , onf,"" io"fit"*outy Io pre'ent 'oter
fraud'
Ho*ever. there is,,,,,5JiJ.^."",n"1
p""i,e have been inrpersonatins
cligible 'olers
at
thepolls'Courtshavebeenreluctant...pr-
,orasuchlaws,contendir|qthataccessibility
is nor ensured for ^,,
.i*tti.^;;;;..,. ";,;r";';,ln
u .,.td"ntial' Such laws dispropor-
20. tionatery disenfranchir.^.i..,-,u...
, r.r""rtri'*.*ft 'i*pty because
they do not have a
clriver,s licenr.. x",t"".i;;;;;y, foYnd
zu pJ.ii"i Lf African Americans and
16 percent
of Latino citizens ao ,-,oit-ruu.
a valid *"1.ii-."i-ttr,,"a pr-'"to
lD compared to 8 percent
sil ;x*i:T*iilSq'!:i".iq#Ii,#*i'::#irvn:*:::lrT;',r"",1r?
,o fl-. discriminatotf tfftt:: Ttl*i.tit nd sororities that rvanted to
use campLrs
facili-
p,",.,i.a irri.l.::o.:#;:::f;:I:Ti;;,.;";q,depqsit to cover possible
damage
ties for a dance wert
The Black students tffitui'*a 't-'ut
tt-'i' p'iti';' hd; aiiiti,,lilt;;l;";:;il#i6l[
.;;;;;,s^",*:ll5*rljr"ru;:::ff 1,::t'l;.:::15::1":5;;;il^hi,e
all student groLtPS 11
fraterniries ur-ra ,o.o.i.ii^.-, ^,ifr"
*fr""t ,"0 ,i.t. "'i'-'
t-'ot""t' which they used for
21. dances'
ir,.pori.yarrected";r';Ar.'i;;4:::,:i,',*l*:y*llnffi #:."#T;Tk'*,'p'
;:s::'."x1i::[Hi::!:i;:11i];i1i]$,:iTtl**"oo'fhersrhisis'iheunder.
lying and painful';;;;;;; iterican
intergroup relations'
Discrimination continues to be
rvidespread in the United States'
It sometimes results
lrom prejudices held.bv individuals
Ut" *ott'tignrn*'iry'ttit "i11:l.:'iltJtt';;lil,i:l
crimination. We llrst ';il;;;;;uring
cliscrimination in terms o1
at efforts that are Ott"f't"it to eliminate
or at least reduce it'
[-]is*r'inrlnatt{)n h"{its the Wailet
Howmuchdiscriminationisthere?^"-
ll:.^*ringprejudice,problemsariservhentrv-
ing to quantifv ai"'i*it'ution' Measuri"g
ptt:"JrE i' t'u-f'tt}|1Jltt"1"1Lt:itTit:,J
assessins attitudes "t;;;;;;
;eecl to take manv factors
into accottnt
i;*';t., ;i "'"o"t''
22. l-rv the initial challer-rg. of identifying
dttt *","tt^i1nttt'' A second clifficulfl'
of tleasur
lJ-ffi;1;;; ;"""ig'l"g "'"'it:^otlii,T'Jil'[. any household is their
a.u.al
-.t*::::':i::ff il",T.;ffi"i;H--.io'#il,arl"#*'.lt:x:;,3rt:J:1:::i.,
salaries, wages, ""0
],ir., ,ir.".y ....*"a, i""a,f, is a more
inclusi'e term that erlco'l-
pu...' uu oi " o"'"-{':Hl'il,;ik':^tt'[$lilT* u lr:*:'
n pe s or P roP e rt e nrs'l
consider income an<
Chapter 3 Discrimination 69
6
g
o
q)
E
oo
E
E
.gEo
E
23. the
lnequality Persists
Racial Stratification and Education in the United States:Why
63,000
56,000
49,000
42,OOO
35,000
28,000
2t,ooo
14,000
7,000
0
Asian White Native Asian White
men men American women women
and Alaska
Native men
Black Native Black Hispanic Hispanic
men American women men women
and Alaska
Native women
24. Median lncome by Race, Ethnicity, and Gender
Even at the very highest levels of schooling, the income gap
remains between Whites and
Blacks. Education also has little apparent effect on the income
gap between male and female
workers. Even a brief analysis reveals striking differences in
earning power between White men
and other groups in the United States. Furthermore, greater
inequality is apparent for African
American and Hispanic women.
Nofei Data released in 2012 for income earned in 20'1 1.
Median income is from all sources and is limited to year-round,
full-trme workers at least 25 years old, Data for White men and
women are for non-Hispanics.
Source; Bureau of the Census 201 2b; DeNavas-Walt, Proctor,
and Smith 201 2: PINC-O3.
Some tentative conclusions about discrimination can be made
looking at income and
wealth data. Figure 3.3 uses income data to show the vivid
disparity in income between
African Americans and Whites and also between men and
women. This encompasses all
full-time'workers. Ahite men, with a median income of
$55,711, earn one-third more
than Black men and almost twice what Hispanic wornen earn in
wages.
Yet Asian American men are at the top and edge out White
males by a little less
than $200 a year. Why do Asian American men earn so much if
race serves as a bar-
rier? The economic picture is not entirely positive. Some Asian
25. American groups sr,rch
as Laotians and Vietnarnese have high levels of poverty.
However, a significant number
of Asian Americans with advanced educations have hieh-earning
jobs, which brings up
the median income. However, as we will see, given their high
levels of schoolins, their
incomes shoulcl be even higher.
Clearly, regardless of race or ethnicity, men outpace women in
annual income. This
disparity between the incomes of Black women and White men
has remained unchanged
over the more than 50 years during which such data have been
tabulated. It illustrates
yet another instance of the €lreater inequality experienced by
minority women. Also,
Figure 3.3 includes data only for full-time, year-round workers;
it excludes homemakers
and the unemployed. Even in this comparison, the deprivation
of Blacks, Hispanics, and
women is confirmed again.
We might be drawn to the fact that Asian American income
appears to slightly over-
take that of Whites. Howeveq as we will see, this is due to
Asian Americans collectively
having mttch more formal schooling than Whites as a group and
deriving some benefits
frorn that achievement.
$56,360 $55,711
',1
:l
26. .
1,,: rr i
.,:.
:,l,rl
"
$36,040 $35.4o7' o55.40r+
$46,478
$47,447 $41,149 $40,777
$30,355
70 Chapter3 Discrimination
Are thcse clifferer-rces eltirely the result of cliscrirnination in
emplovrnerlt? No.
L'rclivicltrals rvithin the fotrr srouPs are not cqrrall,v preparecl
to compete for high-pa,ving
i,bs. Past cliscrirnination is a significant factor in a Person's
current social position.
As
clisctrssecl previousll,,ancl illustratcd in Figtrre 3.3, past
discrirninatioll c()lltintles to take :r
toll or.r moclern victinrs. Taxpavers, preclorninatrtlv White,
u'ere unrvilling ttl strbsidizc the
ptrblic e6ucatiorr of Afiican Amcricans ancl Hispanics atthe
27. same levels asWhite ptrpils.
Even as these :rctiotrs have changed, torlav's schools sholv the
colltinuing results of' this
lpeven spencling pilttcrn from the past. Edrrc:rtion clearlv is an
appropriate virriable tcr
control.
In Tirble 3.1, rledian income is conrpared, holding edtrcation
collstant, rvhich t.ne:rtls
that ,ve ca11 compare Blacks and Whites ancl men and lvometr
lvith approxinratcly tl.re
same alror.lnt of forrnal schoolilg. More education tneans lrore
nlone', but the clisp;rrit1'
rernains. The gap betrvee n races does l-rArro{ somervhat as
edttcati<ln increases. Horvel'er,
both Africal Americans ancl lvornen lag behind their rnore
zrffluent coullterParts. The
61;ntrirst remains clrarnatic: {omen u,ith a master's clegree
tvpically receive $60,304, which
lrea1s tl.rev ea11 nrore than $6,000 less than men rvho
complete onl,v a bzrchelrlr-'s degrec.
Thinkilg o,er the long terrn, a wontAn rvith a bachelor's degrce
rvill lvork ftrll-tirnc for-
three ycars to earn $147,000. The iy-pical male can lvork a little
rnore than 27 tnotlths, takc
ot er 9 months off rvithorrt pa1', ancl still cxceecl the rvotnan's
28. earnings. Alonretl, regzrrdless o1'
race, pa,y at every point. The,v are ofien hirecl at lorver
starting salaries in-iobs couparable tcr
those helcl bv men. S:tlan, increases conle slorver. Ancl b,v
their 30s, thcv rat-eh'recovcr fiotn
e'e . sSort tlatesrit' leayes (Dcv ancl Hill 2007; Gittell and
NlcKinney 2007;Jacobs 200t3)'
the :Who Ends Up Poor? Poverty by Education/Race
$.it:!'ri,T,i
Even at the very highest levels of schooling, the income gap
remains between Whites and Blacks. Education
also has litue apparent effect on the income gap between male
and female workers (income values in dollars).
Total
High School
Nongraduate
Graduate
College
Associate Degree
Bachelors degree
Master's degree
30. 87,704
111 871
114,662
40,061
30,868
39 451
53 386
70 849
87 956
1'15,434
50 655 38 909
30,423 21,113
40,447 30 611
50 928 39 286
66,196 49 108
83,027 60,304
100 766 77,458
/vofe; Data released in 201 2 for income earned in 201 1.
Figures are median income Irom all sources except capital
gains. lncluded are public assislance
31. payments, dividends, pensions, unemployment compensalion,
and so on. lncomes are for all workers 25 years ol age and older'
High
school graduates
include those with GEDS. Data lor Whites are for white non-
Hispanics. "some college" excludes associate degree holders
Family
data above bachelors
degree are derived from median incomes, and data for
doctorate-holders'families are authoas estimate.
Source: DeNavas-Walt, Proctor, and Smith 20'1 2: FINC-o1 ,
PINC-01
on :
Ghapter3 Discrimination
Note what happens to Asian American households. Although
highly educated Asian
Arnericans earn a lot of mone1,, they trail well behind their
White counterparts. With a
doctorate clegree holder in the family, the typical Asian
American household earns an
estirnated $114,662, cornpared to $125,059 in aWhite
household.
This is the picture today, but is it eetting better? According to a
Census Bureau report
released in 201 1 , the answer is no. Durins the early years of
the twenty-first centrrry Blacks
were m()re likely to stay poor than ,rhites and those African
32. Americans in the top rturg
of it'tcome rvere ntore likely to fall than their White
counterparts among the wealthy The
inequality is drarnatic and the trend is not diminishing
(Hisnanick ancl Giefer 201I ).
Nolv that education has been held constant, is the remaining eap
caused by discrim-
ination? Not necessarily. Table 3.1 uses only the amount of
schooling, nor its quality.
Racinl miuorities are more likely to attend inadequately
financecl schools. Some efIbrts
hzrve been m:rde to eliminate disparities between school
districts in the amount of wealth
avirilable to tax for school support, but they have met with little
success.
The inequaliq, of educational opportuniry may seem less
important in explaining sex dis-
crinrination. Althoueh women trsually are not segreuated from
men, educational institutions
ellcourage t:rlented women to enter fields that pay less (nursine
or elementary education)
than other occttpations that require similar amolrnLs of
training. Even when they do enter the
same occtlPation, the earnings clispadty persiss. Even
controllins for age, a stucly of census
clata showecl that female physicians and surgeons earned 69
percent of what their mzrle coun-
terpart.s did. Looking at broad ranges of occupations,
researchers in the last few years have
attributed between one-quarter and one-third of the wage gap to
discrimination rather than
persoual choices, skill preparation, and forrnal schooling
(Reskin 2012; Weinberg 2007).
33. El iminating Discrirnination
Tr,r,o main asents of social change work to reduce
discrimination: voluntary associations
orsanized to solve racial and ethnic problems and the federal
government, inclucling the
cotlrts. The trvo are closely related: Most efforts initiated by
the governnlent were urgecl
b,v irssociations or organizations that represent minoriq/ groups
ar.rd follolved vigorous
Protests bv African Americans against racism. Resistance to
social inequality by subordi-
nate groups has been the key to change. Rarely has any
government on its own initiatir.e
sottsht to encl cliscrimination based on snch criteria as race,
ethnicity, and gender.
All racial and ethnic groups of any size are represented by
private orsanizations that
are, to some clesree, tryine to end discrimination. Some groups
originated in the first half
of the trventieth century, but most have been founded since
{orld &hr II or have become
sienificant forces in bringing about change only since then.
These include church orsa-
nizations, {iaternal social groups, minor political parties, and
legal defense funcls, as rvell
as more militant organizations operating under the scmtiny of
law enforcement agen-
cies. The Purposes, membership, successes, and failures of
these resistance organizations
cledicated to elirninatins discrimination are discussed
throughout this book.
The judiciary, charued with interpretins laws and the U.S.
Constitution, has a much
lonser historv of itl,olvernent in the rights of racial, ethnic, and
34. religious minorities.
Horvever, its early decisions protected the rights of the
dominant sroup, as in the 1t157
U.S. Srrpreme Court's f)rcd Scott decision, which ruled that
slaves remained slaves er,en
'rvhetr livir.rs or traveling in states where slavery was illesal.
Not r.rntil the 1940s clid the
Sttpreme Court revise earlier decisions and besin to grant
African Arnericans the same
rishts as tlrcrse held by Whites. The 1954 Broutn u. Boctrd of
Education decision, lvhich stated
that "separate but equal" facilities-including education-were
unconstitutional, her-
alclecl a nerv series of rtrlings, aruuing that distinguishing
between races in order to segre-
sate was ir-rherently rrnconsti tutionzrl.
71
72 Ghapter 3 Discrimination
the
on:
Fences ond Neighbors:
Segregotion inTwenty-
First-Century Americo
The most important le5;islirtir,c eflort to eradicate discrir-
ninatioll w:ls the Civil Rishts
Act of 1964. This act led ro rhe establishment of the Equ:rl
Ernployrnent Opporttrnitv
Clorlmission (EEOCI), which hacl the porver to investigate
35. complaillts zlsaillst emplo)'crs
zr1fl to recontmend action to the Deparl-ment of.fusticc. If
the.itrstice deP:rrtlncnt sued
alcl discrimination was found, then the court could order
approPriate c()mpe1ls21tiot1.
The act colerecl ernployment practices of all btrsinesscs 'ith
rnorc than 25 en]pltll'ees
and neirrly all employrnent agencies ancl labor ttnions. A 1972
atrendlnent broadened
the coveragc to employers with 2rs feu'irs 15 ernployees.
The Civil Rights Act o{'1964 prohibitecl discrirninatiotr in
pttblir: :rccotntnoclaliells-
tl-rat is, hotels, motels, rest2rurants, g:rsoline stntions, zrnd
amttscment pirrks. Publicl,v
owpefl facilities such :rs parks, stacliums, zrnd swirnrnins pools
rverc also prohibited frrnl
discrirninatins. Another important provision fbrbade
cliscrirninatior.r in all federallv
supportecl proEiranls ancl institutions such as hospitals,
colleses, ancl road constrttctiotl
projects.
'it-r" Civil Rights Act o1'1964 rvas not perf'ect. Since 1964,
several rrcts llncl atncndnletrts
to the original act have been aclclecl to cover thc tnauy arezrs
of cliscriminatior.r it lefi
gntolched, such as crirninal justice:rncl hottsitrg. Ever-r in
areirs singled out for cnfbrce-
ment in the act, discrirnir.rzrtion still occrlrs. Federal agettcies
chargecl with etrfcrrcement
corlpl:tin that they irre r-rnderftrndecl or are denicd
I'vholehearted strpport b1' tl-rc White
Hogse. Also, regardless of horv nruch the E,E(Xlntay vartt to
36. act in a particr.rlar case, the
pcrrson who :rllcges cliscrimination hirs to plrrsuc the
crtrnplaillt over a long tir.ne thzrt is
mtrrked by lengthy periods of inaction. f)espitc tl'rese efforts,
devastating forms o{'clis-
crir-1i1atign persist. A{iican Arnericans, Lzrtinos, ancl others
fall victitn to redlining, or
the pattern of cliscrirnin2ltion 2rsainst people trying to btry
honles in minoritv arlcl racizrllv
changin g neighborhoocls.
Peiple living in preclorritrantly minoritv ncighborhoods have
fbund that compirnics
rvith delivery services refuse to Efo to thcir arca. In one c:rsc
thirt attracte<l nirtionirl atte n-
tion ir.r 1997, a Pizza Hut in Kansas Citv refirsecl to delivcr 40
pitzas to ntr houors pro-
sram 21t a high scl.rool in an all-Black neighborhood. A Pizza
Hut spokesPerson czrlled
ile neighbcrrhoocl unsaf'e ancl szricl that almost every city has
"restricted arelrs" to rvhich
the cornpanv l,vill not deli',.er. This aclnission rvas
p2lrtictrlarly embarrassit.tg bccattse the
high school irlrea<ly hacl ir $170,000-a-year contrirct rvith
Pizzit Hnt to deliver pizzas:rs:r
part of its school lunch program. Service rcdlinins covers eve
rything fiom parcel clcliver-
ies to repair people as werll as firocl rlerlil,eries. The red pcncil
contintles to exist in cities
throtrghitrt the United States (Fuller 19911; Rusk 2001;
37. Schrv:u'tz 2001; Ttrnrer et al. 2002;
Yinser-1995).
Althoueh civil rights lalvs often havc establishecl rights for
otherr n'rinorities, the
Suprerrre tlotrrt nrircle them explicit in tu,o 1987 decisions
involving sr()uPs tlther th:rn
Afiican Arlericans. In the first of the trvo cases, an Iraqi
Arncrican professot' lrsserted
ttrat he hacl beel cleniecl tenurc becatrse of his Aralr origins;
itt the sccond, aJervish con-
gregtltiolt brought suit lor clirrrages in response to the
clefaccrnent olits svnasogtre lvitl-r
derog:rtor1, svrnbols. Thc Suprcnre Clourt rttlecl trnatrimously
thirt, in effect, atlr- rnetlber
of ari ethnic rninoritv mtly suc trnder f'ederirl prohibitions
agirinst rliscrirnination' These
clecisiops pavecl ttre rva,v f<rr :rhnost :rll racial and ethnic
grottps to iuvoke the Civil Rights
Act of 196'l (Tirylor l9ti7).
A particularly itrstrlting forrn of discrirrinatiotr seetned finally
to be on its u'a-v out in
the late 1980s. Maru,sgcial clrrbs h:rrl limitations ttrzrt
fbrba<le mernbcrship to trritrori-
ties,.fervs, :rncl uomcn. For years, cxclusive clubs argued thzrt
thcy rvet'c merelv sclectirlg
{iiencls, but, in fact, a priucipal ftrnctior.r of these cltrbs is its
a forurn t() trans2lct bttsiness'
Depial of ntenrbership rneant lrore than the in:rbility to attend a
lttncheon; it also see r]led
to exclrrde certair.t groups fiom part of thc nrarketplace. ln
1988, the Suprcrle (ltlurt
38. rrrlecl rrnirnirnouslv in Neal Vtrk StaLc Clttbs A.ssrxirttittrt tt.
Oitl of Netu lbrA that states and
cities mav ban sex discrirninatior.r b1, large pri,ate cltrbs
lvhere business lunches
artd sir.nilirr activities take pl:rce. Although thc nrlins docs not
applv to all clubs
artcl leaves the isstre of racial ancl ethnic barriers unresoh.,ed,
itclicl chip arvirvat the
arbitlzrry exclusivencss cl1' pri,ate gr()ups ( Steirr hatrer.
2006; Tru,lor- l g88) .
Mernbersirips :rud restrictive clrgirnizations rcmain perfectll,
lcgal. The rise to
ll2ltiolllrl attentiott of professional solfer Tieel-,'oocls, of
tnixcd Natit,c Arnerican,
Afl'ican, ar-rrl Asian anccstry,, tn:rdc the public ar'varrc thirt
hc rvotrlcl Lrc prohibitecl
fi'orrt plavirtu at a ltrinimunr ol'23 golf'courses by virttre <tf
rirce. In 2002, nol-r-
en's [roups tricd ttusrtccessfirlh' to have thc colf charrpion
speak out becarrse the
Nlaster's and British ()pen rvere pla-vecl or) courses closecl to
,olnen as menrbers.
Tc'tt veirrs later, thc Attgusta Natior-ral Golf (llub, horne of the
N,I:rsters, opened its
rnernbership to w()melt (Scott 2003; ,Iartin, Darvser,,, and
McILrl'2012; Sherrvoocl
201 0).
Pr-or,itrg cliscriminatiol), ercl] as outlined Iirr generations in
lcgislation, con-
tirttres to bc diffir:rrlt. In the 2007 Ledlrctler u. Ooorfiear'l'irr:
ond [luhlter (,'rr. rtrline,
39. the Srrprerne Cotrrt afhrmed that r,ictirns hzrcl to flle a firrmal
conrplaint rvithin
180 rlat's of thc irllesed discrirnination. This set asicle
thousiurcls o1'cases r,vhcre
etnplovccs lezrrned their initi:rl pav was lo'n,cr to contpar:rblv
cmplol,ccl Vhitc or-
tnnle rvorket's orrll'afier ther'' had bccrr in :r.job fbr lcars.
()ivcn the rrsu:rl secrccl,
in rvorkplaccs :tt'ortnd s:rlarics, it rvould h:rl,e m:rcle it
clifficrrlt fbr- potential cases
o1'pav clisparitl' to Lrc effectiverll, 2611,21rl.'"c1. Tn,o 1,e:rrs
latcr, (lonsress enactecl the
Lilly Lcclbetter Fnir Pav Act, u,hich sir,es vicrims rrore tirnc to
flle ir lau,srrit.
The irtabilitr' of'thc Civil Riehts Act, sirnilar leeislirtion, :rnci
cotrrt dccisions
to etrcl discrintin:rtion ckres trot result entirell' Iirirn poor
fina.ncial and political
stlpport, althotrsh it does plav a rolc. The number of'fecleral
cntpk4,ecs assiarlcd
to iuvestigate;rrrd prosectrte bias cases is insufficient.
IVlzu'rl,61i5;6.1,ninaton'prac-
ticcs, sttclt ns thosc describecl:rs ir-rstittrtionirl discrin-
rin:ttion,:rre selclom srrltject
to lesal actiolr.
Discrirnin:rtiort that has occrrrrccl in tl-rc past ciirries into the
preselrt ancl firttrre. As
notecl in Figtrre 3.1, a lack of inheritccl rvealth is one elentcnt
of the past. African
Atrtcricatt :tttd other tnitrorin' gr()ups have had less
opltoltunitr,, to accun-rulirte assets
sttch irs hontes, land, and savitrgs that can insulate them, and
later their cl'rildren, fi-on-r
econornic sctbacks.
40. {Iealtl-r is:r tnot'e inclusive ternl thar) income:rnd encor-r-
rpasses irll of a person's rniltc-
ri:rl assets, irrcltrdins land, stocks, irncl other tvpes
o{'propert,.. {e:rltl'r allorvs one to live
better; evett modest:rssets pl-o','icle instrrancc against the
ellccts ol'.jolr la1,of}'s, rritttrral
clis:t"st.ers, atrrl lottg-term illness, and tl.ret, aftirr'<[
inclir,icltrals rnuch better interest r2rtes
rvhetl thev tteecl to 1)orto'u, lnoncl'. {ealth allox,s childrcn to
grlrdtr:rte lirlm collegc rvith
little or no debr. This rcrninds us that lbr nr:ury pcople, rve:rlth
is not alu,irvs relzrted to
assets btrt :rlso can bc rreasrrrccl bl ir-rdebtedncss.
Sttrdies docutrcnl thitt the disparities in incorrre rve hitlc seell
Arc even gr-c:rter u,hen
rvealth is consi<lercd. Lr 2010, onlr,6 percent of horlebuvers
,ere Afi-ican Ar.ncricans irnd
:rtrother 6 percent Latino. This is, unfortunirtell,, to be
expectecl, bccatrse if inclivirlrrals
experietrce lorver itrcotnes throrrghout their lives, thc),are less
likelr,,to be :rl>le to ptrt an1,-
thing aside Iitr a dorvn paylltcnt. Thev are nror-c likely to har,e
to pay, fbr toclav's expenses
rather thiur sar,e fbr thcir frrttrre or thcir chilclrcn's firturc.
In tlrc Research Foctts "Tl're Uneqtrzrl realtl.r Distril>rrtion,"
rve consider the latest find-
inss regarclins the relatir.'e :rsscts iunonq {hite, Rlack, and
L:rtino Arneric:rns.
Chapter 3 Discrimination 73
A setback in antidiscrimination
lawsuits came when the
41. Supreme Court told Lllly
Ledbetter, in effect, that she was
"too late." Ledbetter had been a
superuisor for many years at the
Gadsden, Alabama, Goodyear
Tire Rubber plant when she
rea ized that she was being paid
$6,500 less per year than the
lowest-paid male superuisor.
The Court ruled that she must
sue withrn 180 days of the initial
discriminatory paycheck even
though rt had takel years berore
she even knew of the dlfferentlal
payment. Congress later
enacted legislation elim nating
the'1 BO-day restrict on.
the
on
Sociol lnequolities:
Roce ond Ethnicity
l
I
Project Management
42. Processes, Methodologies, and Economics
Third Edition
Avraham Shtub
Faculty of Industrial Engineering and Management
The Technion–Israel Institute of Technology
Moshe Rosenwein
Department of Industrial Engineering and Operations Research
Columbia University
Boston Columbus San Francisco New York Hoboken
Indianapolis London Toronto Sydney Singapore Tokyo
Montreal
Dubai Madrid Hong Kong Mexico City Munich Paris
Amsterdam Cape Town
Vice President and Editorial Director, Engineering and
Computer Science:
Marcia J. Horton
Editor in Chief: Julian Partridge
Executive Editor: Holly Stark
Editorial Assistant: Amanda Brands
Field Marketing Manager: Demetrius Hall
44. electronic,
mechanical, photocopying, recording, or otherwise. For
information
regarding permissions, request forms and the appropriate
contacts within the
Pearson Education Global Rights & Permissions department,
please visit
www.pearsoned.com/permissions/.
Many of the designations by manufacturers and seller to
distinguish their
products are claimed as trademarks. Where those designations
appear in this
book, and the publisher was aware of a trademark claim, the
designations
have been printed in initial caps or all caps.
The author and publisher of this book have used their best
efforts in preparing
this book. These efforts include the development, research, and
testing of
theories and programs to determine their effectiveness. The
author and
publisher make no warranty of any kind, expressed or implied,
with regard to
these programs or the documentation contained in this book.
The author and
publisher shall not be liable in any event for incidental or
consequential
damages with, or arising out of, the furnishing, performance, or
use of these
programs.
Library of Congress Cataloging-in-Publication Data
Names: Shtub, Avraham, author. | Rosenwein, Moshe, author.
45. Title: Project management : processes, methodologies, and
economics /
Avraham Shtub, Faculty of Industrial Engineering and
Management, The
Technion-Israel Institute of Technology, Moshe Rosenwein,
Department of
Industrial Engineering and Operations Research, Columbia
University.
Other titles: Project management (Boston, Mass.)
Description: 3E. | Pearson | Includes bibliographical references
and index.
Identifiers: LCCN 2016030485 | ISBN 9780134478661 (pbk.)
Subjects: LCSH: Engineering—Management. | Project
management.
Classification: LCC TA190 .S583 2017 | DDC 658.4/04—dc23
LC record
available at https://lccn.loc.gov/2016030485
10 9 8 7 6 5 4 3 2 1
http://www.pearsoned.com/permissions/
https://lccn.loc.gov/2016030485
ISBN-10: 0-13-447866-5
ISBN-13: 978-0-13-447866-1
This book is dedicated to my grandchildren Zoey, Danielle,
Adam, and Noam
Shtub.
This book is dedicated to my wife, Debbie; my three children,
David,
46. Hannah, and Benjamin; my late parents, Zvi and Blanche
Rosenwein; and my
in-laws, Dr. Herman and Irma Kaplan.
Contents
1. Nomenclature xv
2. Preface xvii
3. What’s New in this Edition xxi
4. About the Authors xxiii
1. 1 Introduction 1
1. 1.1 Nature of Project Management 1
2. 1.2 Relationship Between Projects and Other Production
Systems 2
3. 1.3 Characteristics of Projects 4
1. 1.3.1 Definitions and Issues 5
2. 1.3.2 Risk and Uncertainty 7
3. 1.3.3 Phases of a Project 9
4. 1.3.4 Organizing for a Project 11
4. 1.4 Project Manager 14
1. 1.4.1 Basic Functions 15
47. 2. 1.4.2 Characteristics of Effective Project Managers 16
5. 1.5 Components, Concepts, and Terminology 16
6. 1.6 Movement to Project-Based Work 24
7. 1.7 Life Cycle of a Project: Strategic and Tactical Issues 26
8. 1.8 Factors that Affect the Success of a Project 29
9. 1.9 About the book: Purpose and Structure 31
1. Team Project 35
2. Discussion Questions 38
3. Exercises 39
4. Bibliography 41
5. Appendix 1A: Engineering Versus Management 43
6. 1A.1 Nature of Management 43
7. 1A.2 Differences between Engineering and Management 43
8. 1A.3 Transition from Engineer to Manager 45
9. Additional References 45
2. 2 Process Approach to Project Management 47
1. 2.1 Introduction 47
48. 1. 2.1.1 Life-Cycle Models 48
2. 2.1.2 Example of a Project Life Cycle 51
3. 2.1.3 Application of the Waterfall Model for Software
Development 51
2. 2.2 Project Management Processes 53
1. 2.2.1 Process Design 53
2. 2.2.2 PMBOK and Processes in the Project Life Cycle 54
3. 2.3 Project Integration Management 54
1. 2.3.1 Accompanying Processes 54
2. 2.3.2 Description 56
4. 2.4 Project Scope Management 60
1. 2.4.1 Accompanying Processes 60
2. 2.4.2 Description 60
5. 2.5 Project Time Management 61
1. 2.5.1 Accompanying Processes 61
2. 2.5.2 Description 62
6. 2.6 Project Cost Management 63
1. 2.6.1 Accompanying Processes 63
50. 1. 2.12.1 Accompanying Processes 74
2. 2.12.2 Description 75
13. 2.13 The Learning Organization and Continuous
Improvement 76
1. 2.13.1 Individual and Organizational Learning 76
2. 2.13.2 Workflow and Process Design as the Basis of
Learning 76
1. Team Project 77
2. Discussion Questions 77
3. Exercises 78
4. Bibliography 78
3. 3 Engineering Economic Analysis 81
1. 3.1 Introduction 81
1. 3.1.1 Need for Economic Analysis 82
2. 3.1.2 Time Value of Money 82
3. 3.1.3 Discount Rate, Interest Rate, and Minimum Acceptable
Rate of Return 83
2. 3.2 Compound Interest Formulas 84
51. 1. 3.2.1 Present Worth, Future Worth, Uniform Series, and
Gradient Series 86
2. 3.2.2 Nominal and Effective Interest Rates 89
3. 3.2.3 Inflation 90
4. 3.2.4 Treatment of Risk 92
3. 3.3 Comparison of Alternatives 92
1. 3.3.1 Defining Investment Alternatives 94
2. 3.3.2 Steps in the Analysis 96
4. 3.4 Equivalent Worth Methods 97
1. 3.4.1 Present Worth Method 97
2. 3.4.2 Annual Worth Method 98
3. 3.4.3 Future Worth Method 99
4. 3.4.4 Discussion of Present Worth, Annual Worth and Future
Worth Methods 101
5. 3.4.5 Internal Rate of Return Method 102
6. 3.4.6 Payback Period Method 109
5. 3.5 Sensitivity and Breakeven Analysis 111
6. 3.6 Effect of Tax and Depreciation on Investment Decisions
114
52. 1. 3.6.1 Capital Expansion Decision 116
2. 3.6.2 Replacement Decision 118
3. 3.6.3 Make-or-Buy Decision 123
4. 3.6.4 Lease-or-Buy Decision 124
7. 3.7 Utility Theory 125
1. 3.7.1 Expected Utility Maximization 126
2. 3.7.2 Bernoulli’s Principle 128
3. 3.7.3 Constructing the Utility Function 129
4. 3.7.4 Evaluating Alternatives 133
5. 3.7.5 Characteristics of the Utility Function 135
1. Team Project 137
2. Discussion Questions 141
3. Exercises 142
4. Bibliography 152
4. 4 Life-Cycle Costing 155
1. 4.1 Need for Life-Cycle Cost Analysis 155
2. 4.2 Uncertainties in Life-Cycle Cost Models 158
3. 4.3 Classification of Cost Components 161
53. 4. 4.4 Developing the LCC Model 168
5. 4.5 Using the Life-Cycle Cost Model 175
1. Team Project 176
2. Discussion Questions 176
3. Exercises 177
4. Bibliography 179
5. 5 Portfolio Management—Project Screening and Selection
181
1. 5.1 Components of the Evaluation Process 181
2. 5.2 Dynamics of Project Selection 183
3. 5.3 Checklists and Scoring Models 184
4. 5.4 Benefit-Cost Analysis 187
1. 5.4.1 Step-By-Step Approach 193
2. 5.4.2 Using the Methodology 193
3. 5.4.3 Classes of Benefits and Costs 193
4. 5.4.4 Shortcomings of the Benefit-Cost Methodology 194
5. 5.5 Cost-Effectiveness Analysis 195
54. 6. 5.6 Issues Related to Risk 198
1. 5.6.1 Accepting and Managing Risk 200
2. 5.6.2 Coping with Uncertainty 201
3. 5.6.3 Non-Probabilistic Evaluation Methods when
Uncertainty Is Present 202
4. 5.6.4 Risk-Benefit Analysis 207
5. 5.6.5 Limits of Risk Analysis 210
7. 5.7 Decision Trees 210
1. 5.7.1 Decision Tree Steps 217
2. 5.7.2 Basic Principles of Diagramming 218
3. 5.7.3 Use of Statistics to Determine the Value of More
Information 219
4. 5.7.4 Discussion and Assessment 222
8. 5.8 Real Options 223
1. 5.8.1 Drivers of Value 223
2. 5.8.2 Relationship to Portfolio Management 224
1. Team Project 225
2. Discussion Questions 228
55. 3. Exercises 229
4. Bibliography 237
5. Appendix 5A: Bayes’ Theorem for Discrete Outcomes 239
6. 6 Multiple-Criteria Methods for Evaluation and Group
Decision
Making 241
1. 6.1 Introduction 241
2. 6.2 Framework for Evaluation and Selection 242
1. 6.2.1 Objectives and Attributes 242
2. 6.2.2 Aggregating Objectives Into a Value Model 244
3. 6.3 Multiattribute Utility Theory 244
1. 6.3.1 Violations of Multiattribute Utility Theory 249
4. 6.4 Analytic Hierarchy Process 254
1. 6.4.1 Determining Local Priorities 255
2. 6.4.2 Checking for Consistency 260
3. 6.4.3 Determining Global Priorities 261
5. 6.5 Group Decision Making 262
1. 6.5.1 Group Composition 263
56. 2. 6.5.2 Running the Decision-Making Session 264
3. 6.5.3 Implementing the Results 265
4. 6.5.4 Group Decision Support Systems 265
1. Team Project 267
2. Discussion Questions 267
3. Exercises 268
4. Bibliography 271
5. Appendix 6A: Comparison of Multiattribute Utility Theory
with
the AHP: Case Study 275
6. 6A.1 Introduction and Background 275
7. 6A.2 The Cargo Handling Problem 276
1. 6A.2.1 System Objectives 276
2. 6A.2.2 Possibility of Commercial Procurement 277
3. 6A.2.3 Alternative Approaches 277
8. 6A.3 Analytic Hierarchy Process 279
1. 6A.3.1 Definition of Attributes 280
2. 6A.3.2 Analytic Hierarchy Process Computations 281
57. 3. 6A.3.3 Data Collection and Results for AHP 283
4. 6A.3.4 Discussion of Analytic Hierarchy Process and Results
284
9. 6A.4 Multiattribute Utility Theory 286
1. 6A.4.1 Data Collection and Results for Multiattribute Utility
Theory 286
2. 6A.4.2 Discussion of Multiattribute Utility Theory and
Results 290
10. 6A.5 Additional Observations 290
11. 6A.6 Conclusions for the Case Study 291
12. References 291
7. 7 Scope and Organizational Structure of a Project 293
1. 7.1 Introduction 293
2. 7.2 Organizational Structures 294
1. 7.2.1 Functional Organization 295
2. 7.2.2 Project Organization 297
3. 7.2.3 Product Organization 298
4. 7.2.4 Customer Organization 298
5. 7.2.5 Territorial Organization 299
58. 6. 7.2.6 The Matrix Organization 299
7. 7.2.7 Criteria for Selecting an Organizational Structure 302
3. 7.3 Organizational Breakdown Structure of Projects 303
1. 7.3.1 Factors in Selecting a Structure 304
2. 7.3.2 The Project Manager 305
3. 7.3.3 Project Office 309
4. 7.4 Project Scope 312
1. 7.4.1 Work Breakdown Structure 313
2. 7.4.2 Work Package Design 320
5. 7.5 Combining the Organizational and Work Breakdown
Structures
322
1. 7.5.1 Linear Responsibility Chart 323
6. 7.6 Management of Human Resources 324
1. 7.6.1 Developing and Managing the Team 325
2. 7.6.2 Encouraging Creativity and Innovation 329
3. 7.6.3 Leadership, Authority, and Responsibility 331
4. 7.6.4 Ethical and Legal Aspects of Project Management 334
1. Team Project 335
59. 2. Discussion Questions 336
3. Exercises 336
4. Bibliography 338
8. 8 Management of Product, Process, and Support Design 341
1. 8.1 Design of Products, Services, and Systems 341
1. 8.1.1 Principles of Good Design 342
2. 8.1.2 Management of Technology and Design in Projects 344
2. 8.2 Project Manager’s Role 345
3. 8.3 Importance of Time and the Use of Teams 346
1. 8.3.1 Concurrent Engineering and Time-Based Competition
347
2. 8.3.2 Time Management 349
3. 8.3.3 Guideposts for Success 352
4. 8.3.4 Industrial Experience 354
5. 8.3.5 Unresolved Issues 355
4. 8.4 Supporting Tools 355
1. 8.4.1 Quality Function Deployment 355
65. 5. Appendix 11A: Time–Cost Tradeoff with Excel 539
12. 12 Project Control 545
1. 12.1 Introduction 545
2. 12.2 Common Forms of Project Control 548
3. 12.3 Integrating the OBS and WBS with Cost and Schedule
Control
551
1. 12.3.1 Hierarchical Structures 552
2. 12.3.2 Earned Value Approach 556
4. 12.4 Reporting Progress 565
5. 12.5 Updating Cost and Schedule Estimates 566
6. 12.6 Technological Control: Quality and Configuration 569
7. 12.7 Line of Balance 569
8. 12.8 Overhead Control 574
1. Team Project 576
2. Discussion Questions 577
3. Exercises 577
4. Bibliography 580
66. 13. Appendix 12A: Example of a Work Breakdown Structure
581
14. Appendix 12B: Department of Energy Cost/Schedule
Control Systems
Criteria 583
15. 13 Research and Development Projects 587
1. 13.1 Introduction 587
2. 13.2 New Product Development 589
1. 13.2.1 Evaluation and Assessment of Innovations 589
2. 13.2.2 Changing Expectations 593
3. 13.2.3 Technology Leapfrogging 593
4. 13.2.4 Standards 594
5. 13.2.5 Cost and Time Overruns 595
3. 13.3 Managing Technology 595
1. 13.3.1 Classification of Technologies 596
2. 13.3.2 Exploiting Mature Technologies 597
3. 13.3.3 Relationship Between Technology and Projects 598
4. 13.4 Strategic R&D Planning 600
1. 13.4.1 Role of R&D Manager 600
67. 2. 13.4.2 Planning Team 601
5. 13.5 Parallel Funding: Dealing with Uncertainty 603
1. 13.5.1 Categorizing Strategies 604
2. 13.5.2 Analytic Framework 605
3. 13.5.3 Q-Gert 606
6. 13.6 Managing the R&D Portfolio 607
1. 13.6.1 Evaluating an Ongoing Project 609
2. 13.6.2 Analytic Methodology 612
1. Team Project 617
2. Discussion Questions 618
3. Exercises 619
4. Bibliography 619
5. Appendix 13A: Portfolio Management Case Study 622
16. 14 Computer Support for Project Management 627
1. 14.1 Introduction 627
2. 14.2 Use of Computers in Project Management 628
1. 14.2.1 Supporting the Project Management Process Approach
70. 3. Exercises 684
4. Bibliography 685
18. 16 New Frontiers in Teaching Project Management in
MBA and
Engineering Programs 687
1. 16.1 Introduction 687
2. 16.2 Motivation for Simulation-Based Training 687
3. 16.3 Specific Example—The Project Team Builder (PTB) 691
4. 16.4 The Global Network for Advanced Management
(GNAM)
MBA New Product Development (NPD) Course 692
5. 16.5 Project Management for Engineers at Columbia
University
693
6. 16.6 Experiments and Results 694
7. 16.7 The Use of Simulation-Based Training for Teaching
Project
Management in Europe 695
8. 16.8 Summary 696
1. Bibliography 697
1. Index 699
71. Nomenclature
AC annual cost
ACWP actual cost of work performed
AHP analytic hierarchy process
AOA activity on arrow
AON activity on node
AW annual worth
BAC budget at completion
B/C benefit/cost
BCWP budgeted cost of work performed
BCWS budgeted cost of work scheduled
CBS cost breakdown structure
CCB change control board
CCBM critical chain buffer management
CDR critical design review
CE certainty equivalent, concurrent engineering
C-E cost-effectiveness
CER cost estimating relationship
CI cost index; consistency index;
72. criticality index
CM configuration management
COO chief operating officer
CPIF cost plus incentive fee
CPM critical path method
CR capital recovery, consistency ratio
C/SCSC cost/schedule control systems criteria
CV cost variance
DOD Department of Defense
DOE Department of Energy
DOH direct overhead costs
DSS decision support system
EAC estimate at completion
ECO engineering change order
ECR engineering change request
EMV expected monetary value
EOM end of month
73. EOY end of year
ERP enterprise resource planning
ETC estimate to complete
ETMS early termination monitoring system
EUAC equivalent uniform annual cost
EV earned value
EVPI expected value of perfect information
EVSI expected value of sample information
FFP firm fixed price
FMS flexible manufacturing system
FPIF fixed price incentive fee
FW future worth
GAO General Accounting Office
GDSS group decision support system
GERT graphical evaluation and review technique
HR human resources
IPT integraded product team
74. IRR internal rate of return
IRS Internal Revenue Service
ISO International Standards Organization
IT information technology
LCC life-cycle cost
LOB line of balance
LOE level of effort
LP linear program
LRC linear responsibility chart
MACRS modified accelerated cost recovery system
MARR minimum acceptable (attractive) rate of return
MAUT multiattribute utility theory
MBO management by objectives
MIS management information system
MIT Massachusetts Institute of Technology
MPS master production schedule
MTBF mean time between failures
75. MTTR mean time to repair
NAC net annual cost
NASA National Aeronautics and Space Administration
NBC nuclear, biological, chemical
NPV net present value
OBS organizational breakdown structure
O&M operations and maintenance
PDMS product data management system
PDR preliminary design review
PERT program evaluation and review technique
PMBOK project management body of knowledge
PMI Project Management Institute
PMP project management professional
PO project office
PT project team
PV planned value
PW present worth
76. QA quality assurance
QFD quality function deployment
RAM reliability, availability, and maintainability; random
access
memory
R&D research and development
RDT&E research, development, testing, and evaluation
RFP request for proposal
ROR rate of return
SI schedule index
SOW statement of work
SOYD sum-of-the-years digits
SV schedule variance
TQM total quality management
WBS work breakdown structure
WP work package
WR work remaining
77. Preface
We all deal with projects in our daily lives. In most cases,
organization and
management simply amount to constructing a list of tasks and
executing them
in sequence, but when the information is limited or imprecise
and when
cause-and-effect relationships are uncertain, a more considered
approach is
called for. This is especially true when the stakes are high and
time is
pressing. Getting the job done right the first time is essential.
This means
doing the upfront work thoroughly, even at the cost of
lengthening the initial
phases of the project. Shaving expenses in the early stages with
the intent of
leaving time and money for revisions later might seem like a
good idea but
could have consequences of painful proportions. Seasoned
managers will tell
you that it is more cost-effective in the long run to add five
extra engineers at
the beginning of a project than to have to add 50 toward the
end.
The quality revolution in manufacturing has brought this point
home.
Companies in all areas of technology have come to learn that
quality cannot
be inspected into a product; it must be built in. Recalling the
1980s, the
global competitive battles of that time were won by companies
that could
achieve cost and quality advantages in existing, well-defined
78. markets. In the
1990s, these battles were won by companies that could build
and dominate
new markets. Today, the emphasis is partnering and better
coordination of the
supply chain. Planning is a critical component of this process
and is the
foundation of project management.
Projects may involve dozens of firms and hundreds of people
who need to be
managed and coordinated. They need to know what has to be
done, who is to
do it, when it should be done, how it will be done, and what
resources will be
used. Proper planning is the first step in communicating these
intentions. The
problem is made difficult by what can be characterized as an
atmosphere of
uncertainty, chaos, and conflicting goals. To ensure teamwork,
all major
participants and stakeholders should be involved at each stage
of the process.
How is this achieved efficiently, within budget, and on
schedule? The
primary objective in writing our first book was to answer this
question from
the perspective of the project manager. We did this by
identifying the
components of modern project management and showing how
they relate to
the basic phases of a project, starting with conceptual design
79. and advanced
development, and continuing through detailed design,
production, and
termination. Taking a practical approach, we drew on our
collective
experience in the electronics, information services, and
aerospace industries.
The purpose of the second edition was to update the
developments in the field
over the last 10 years and to expand on some of the concerns
that are
foremost in the minds of practitioners. In doing so, we have
incorporated new
material in many of the chapters specifically related to the
Project
Management Body of Knowledge (PMBOK) published by the
Project
Management Institute. This material reflects the tools,
techniques, and
processes that have gained widespread acceptance by the
profession because
of their proven value and usefulness.
Over the years, numerous books have been written with similar
objectives in
mind. We acknowledge their contribution and have endeavored
to build on
their strengths. As such in the third edition of the book, we have
focused on
integrative concepts rather than isolated methodologies. We
have relied on
simple models to convey ideas and have intentionally avoided
detailed
mathematical formulations and solution algorithms––aspects of
the field
better left to other parts of the curriculum. Nevertheless, we do
80. present some
models of a more technical nature and provide references for
readers who
wish to gain a deeper understanding of their use. The
availability of powerful,
commercial codes brings model solutions within reach of the
project team.
To ensure that project participants work toward the same end
and hold the
same expectations, short- and long-term goals must be
identified and
communicated continually. The project plan is the vehicle by
which this is
accomplished and, once approved, becomes the basis for
monitoring,
controlling, and evaluating progress at each phase of the
project’s life cycle.
To help the project manager in this effort, various software
packages have
been developed; the most common run interactively on
microcomputers and
have full functional and report-generating capabilities. In our
experience,
even the most timid users are able to take advantage of their
main features
after only a few hours of hands-on instruction.
A second objective in writing this book has been to fill a void
between texts
aimed at low- to mid-level managers and those aimed at
technical personnel
with strong analytic skills but little training in or exposure to
organizational
81. issues. Those who teach engineering or business students at
both the late
undergraduate and early graduate levels should find it suitable.
In addition,
the book is intended to serve as a reference for the practitioner
who is new to
the field or who would like to gain a surer footing in project
management
concepts and techniques.
The core material, including most of the underlying theory, can
be covered in
a one-semester course. At the end of Chapter 1, we outline the
book’s
contents. Chapter 3 deals with economic issues, such as cash
flow, time value
of money, and depreciation, as they relate to projects. With this
material and
some supplementary notes, coupled with the evaluation methods
and multiple
criteria decision-making techniques discussed in Chapters 5 and
6,
respectively, it should be possible to teach a combined course in
project
management and engineering economy. This is the direction in
which many
undergraduate engineering programs are now headed after many
years of
industry prodding. Young engineers are often thrust into
leadership roles
without adequate preparation or training in project management
skills.
Among the enhancements in the Third Edition is a section on
Lean project
management, discussed in Chapter 8, and a new Chapter 16 on
82. simulation-
based training for project management.
Lean project management is a Quality Management initiative
that focuses on
maximizing the value that a project generates for its
stakeholders while
minimizing waste. Lean project management is based on the
Toyota
production system philosophy originally developed for a
repetitive
environment and modified to a nonrepetitive environment to
support project
managers and project teams in launching, planning, executing,
and
terminating projects. Lean project management is all about
people—selecting
the right project team members, teaching them the art and
science of project
management, and developing a highly motivated team that
works together to
achieve project goals.
Simulation-based training is a great tool for training project
team members
and for team development. Chapter 16 discusses the principles
of simulation-
based training and its application to project management. The
chapter reports
on the authors’ experience in using simulation-based training in
leading
business schools, such as members of the Global Network for
Advanced
83. Management (GNAM), and in leading engineering schools, such
as the
Columbia University School of Engineering and the Technion.
The authors
also incorporated feedback received from European universities
such as
Technische Universität München (TUM) School of Management
and
Katholieke Universiteit Leuven that used the Project Team
Builder (PTB)
simulation-based training environment. Adopters of this book
are encouraged
to try the PTB—it is available from
http://www.sandboxmodel.com/—and to
integrate it into their courses.
Writing a textbook is a collaborative effort involving many
people whose
names do not always appear on the cover. In particular, we
thank all faculty
who adopted the first and second editions of the book and
provided us with
their constructive and informative comments over the years.
With regard to
production, much appreciation goes to Lillian Bluestein for her
thorough job
in proofreading and editing the manuscript. We would also like
to thank Chen
Gretz-Shmueli for her contribution to the discussion in the
human resources
section. Finally, we are forever grateful to the phalanx of
students who have
studied project management at our universities and who have
made the
painstaking efforts of gathering and writing new material all
worthwhile.
84. Avraham Shtub
Moshe Rosenwein
http://www.sandboxmodel.com/
What’s New in this Edition
The purpose of the new, third edition of this book is to update
developments
in the project management field over the last 10 years and to
more broadly
address some of the concerns that have increased in prominence
in the minds
of practitioners. We incorporated new material in many of the
chapters
specifically related to the Project Management Body of
Knowledge
(PMBOK) published by the Project Management Institute. This
material
reflects the tools, techniques, and processes that have gained
widespread
acceptance by the profession because of their proven value and
usefulness.
Noteworthy enhancements in the third edition include:
An expanded section regarding Lean project management in
Chapter 8;
A new chapter, Chapter 16, discussing the use of simulation and
the
Project Team Builder software;
A detailed discussion on activity splitting and its advantages
85. and
disadvantages in project management;
Descriptions, with examples, of resource-scheduling heuristics
such as
the longest-duration first heuristic and the Activity Time
(ACTIM)
algorithm;
Examples that demonstrate the use of Excel Solver to model
project
management problems such as the time–cost tradeoff;
A description of project management courses at Columbia
University
and the Global Network of Advanced Management.
About the Authors
Professor Avraham Shtub holds the Stephen and Sharon Seiden
Chair in
Project Management. He has a B.Sc. in Electrical Engineering
from the
Technion–Israel Institute of Technology (1974), an MBA from
Tel Aviv
University (1978), and a Ph.D. in Management Science and
Industrial
Engineering from the University of Washington (1982).
He is a certified Project Management Professional (PMP) and a
member of
the Project Management Institute (PMI-USA). He is the
recipient of the
Institute of Industrial Engineering 1995 Book of the Year
Award for his book
86. Project Management: Engineering, Technology, and
Implementation
(coauthored with Jonathan Bard and Shlomo Globerson),
Prentice Hall, 1994.
He is the recipient of the Production Operations Management
Society Wick
Skinner Teaching Innovation Achievements Award for his book
Enterprise
Resource Planning (ERP): The Dynamics of Operations
Management. His
books on Project Management were published in English,
Hebrew, Greek,
and Chinese.
He is the recipient of the 2008 Project Management Institute
Professional
Development Product of the Year Award for the training
simulator “Project
Team Builder – PTB.”
Professor Shtub was a Department Editor for IIE Transactions,
he was on the
Editorial Boards of the Project Management Journal, The
International
Journal of Project Management, IIE Transactions, and the
International
Journal of Production Research. He was a faculty member of the
department
of Industrial Engineering at Tel Aviv University from 1984 to
1998, where he
also served as a chairman of the department (1993–1996). He
joined the
Technion in 1998 and was the Associate Dean and head of the
MBA
program.
87. He has been a consultant to industry in the areas of project
management,
training by simulators, and the design of production—operation
systems. He
was invited to speak at special seminars on Project Management
and
Operations in Europe, the Far East, North America, South
America, and
Australia.
Professor Shtub visited and taught at Vanderbilt University, The
University
of Pennsylvania, Korean Institute of Technology, Bilkent
University in
Turkey, Otego University in New Zealand, Yale University,
Universitat
Politécnica de Valencia, and the University of Bergamo in Italy.
Dr. Moshe Rosenwein has a B.S.E. from Princeton University
and a Ph.D. in
Decision Sciences from the University of Pennsylvania. He has
worked in the
industry throughout his professional career, applying
management science
modeling and methodologies to business problems in supply
chain
optimization, network design, customer relationship
management, and
scheduling. He has served as an adjunct professor at Columbia
University on
multiple occasions over the past 20 years and developed a
project
management course for the School of Engineering that has been
88. taught since
2009. He has also taught at Seton Hall University and Rutgers
University.
Dr. Rosenwein has published over 20 refereed papers and has
delivered
numerous talks at universities and conferences. In 2001, he led
an industry
team that was awarded a semi-finalist in the Franz Edelman
competition for
the practice of management science.
Chapter 1 Introduction
1.1 Nature of Project Management
Many of the most difficult engineering and business challenges
of recent
decades have been to design, develop, and implement new
systems of a type
and complexity never before attempted. Examples include the
construction of
oil drilling platforms in the North Sea off the coast of Great
Britain, the
development of the manned space program in both the United
States and the
former Soviet Union, and the worldwide installation of fiber
optic lines for
broadband telecommunications. The creation of these systems
with
performance capabilities not previously available and within
acceptable
schedules and budgets has required the development of new
methods of
planning, organizing, and controlling events. This is the essence
of project
89. management.
A project is an organized endeavor aimed at accomplishing a
specific
nonroutine or low-volume task. Although projects are not
repetitive, they
may take significant amounts of time and, for our purposes, are
sufficiently
large or complex to be recognized and managed as separate
undertakings.
Teams have emerged as the way of supplying the needed talents.
The use of
teams complicates the flow of information and places additional
burdens on
management to communicate with and coordinate the activities
of the
participants.
The amount of time in which an individual or an organizational
unit is
involved in a project may vary considerably. Someone in
operations may
work only with other operations personnel on a project or may
work with a
team composed of specialists from various functional areas to
study and solve
a specific problem or to perform a secondary task.
Management of a project differs in several ways from
management of a
typical organization. The objective of a project team is to
accomplish its
prescribed mission and disband. Few firms are in business to
perform just one
90. job and then disappear. Because a project is intended to have a
finite life,
employees are seldom hired with the intent of building a career
with the
project. Instead, a team is pulled together on an ad-hoc basis
from among
people who normally have assignments in other parts of the
organization.
They may be asked to work full time on the project until its
completion; or
they may be asked to work only part time, such as two days a
week, on the
project and spend the rest of the time at their usual assignments.
A project
may involve a short-term task that lasts only a matter of days,
or it may run
for years. After completion, the team normally disperses and its
members
return to their original jobs.
The need to manage large, complex projects, constrained by
tight schedules
and budgets, motivated the development of methodologies
different from
those used to manage a typical enterprise. The increasingly
complex task of
managing large-scale, enterprise-wide projects has led to the
rise in
importance of the project management function and the role of
the project
manager or project management office. Project management is
increasingly
viewed in both industry and government as a critical role on a
project team
and has led to the development of project management as a
91. profession (much
like finance, marketing, or information technology, for
example). The Project
Management Institute (PMI), a nonprofit organization, is in the
forefront of
developing project management methodologies and of providing
educational
services in the form of workshops, training, and professional
literature.
1.2 Relationship Between Projects
and Other Production Systems
Operations and production management contains three major
classes of
systems: (1) those designed for mass production, (2) those
designed for batch
(or lot) production, and (3) those designed for undertaking
nonrepetitive
projects common to construction and new product development.
Each of
these classes may be found in both the manufacturing and
service sectors.
Mass production systems are typically designed around the
specific processes
used to assemble a product or perform a service. Their
orientation is fixed
and their applications are limited. Resources and facilities are
composed of
special-purpose equipment designed to perform the operations
required by
the product or the service in an efficient way. By laying out the
equipment to
parallel the natural routings, material handling and information
92. processing are
greatly simplified. Frequently, material handling is automated
and the use of
conveyors and monorails is extensive. The resulting system is
capital
intensive and very efficient in the processing of large quantities
of specific
products or services for which relatively little management and
control are
necessary. However, these systems are very difficult to alter
should a need
arise to produce new or modified products or to provide new
services. As a
result, they are most appropriate for operations that experience
a high rate of
demand (e.g., several hundred thousand units annually) as well
as high
aggregate demand (e.g., several million units throughout the life
cycle of the
system).
Batch-oriented systems are used when several products or
services are
processed in the same facility. When the demand rate is not
high enough or
when long-run expectations do not justify the investment in
special-purpose
equipment, an effort is made to design a more flexible system
on which a
variety of products or services can be processed. Because the
resources used
in such systems have to be adjusted (set up) when production
switches from
one product to another, jobs are typically scheduled in batches
to save setup
time. Flexibility is achieved by using general-purpose resources
93. that can be
adjusted to handle different processes. The complexity of
operations
planning, scheduling, and control is greater than in mass
production systems
as each product has its own routing (sequence of operations). To
simplify
planning, resources are frequently grouped together based on
the type of
processes that they perform. Thus, batch-oriented systems
contain
organizational units that specialize in a function or a process, as
opposed to
product lines that are found in mass production systems.
Departments such as
metal cutting, painting, testing, and packaging/shipping are
typical examples
from the batch-oriented manufacturing sector, whereas word
processing
centers and diagnostic laboratories are examples from the
service sector.
In the batch-oriented system, it is particularly important to pay
attention to
material handling needs because each product has its specific
set of
operations and routings. Material handling equipment, such as
forklifts, is
used to move in-process inventory between departments and
work centers.
The flexibility of batch-oriented systems makes them attractive
for many
organizations.
94. In recent years, flexible manufacturing systems have been quick
to gain
acceptance in some industrial settings. With the help of
microelectronics and
computer technology, these systems are designed to achieve
mass production
efficiencies in low-demand environments. They work by
reducing setup
times and automating material handling operations but are
extremely capital
intensive. Hence they cannot always be justified when product
demand is low
or when labor costs are minimal. Another approach is to take
advantage of
local economies of scale. Group technology cells, which are
based on
clustering similar products or components into families
processed by
dedicated resources of the facility, are one way to implement
this approach.
Higher utilization rates and greater throughput can be achieved
by processing
similar components on dedicated machines.
By way of contrast, systems that are subject to very low demand
(no more
than a few units) are substantially different from the first two
mentioned.
Because of the nonrepetitive nature of these systems, past
experience may be
of limited value so little learning takes place. In this
environment, extensive
management effort is required to plan, monitor, and control the
activities of
the organization. Project management is a direct outgrowth of
95. these efforts.
It is possible to classify organizations based on their production
orientation as
a function of volume and batch size. This is illustrated in Figure
1.1.
Figure 1.1
Classification of production systems.
Figure 1.1 Full Alternative Text
The borderlines between mass production, batch-oriented, and
project-
oriented systems are hard to define. In some organizations
where the project
approach has been adopted, several units of the same product (a
batch) are
produced, whereas other organizations use a batch-oriented
system that
produces small lots (the just-in-time approach) of very large
volumes of
products. To better understand the transition between the three
types of
systems, consider an electronics firm that assembles printed
circuit boards in
small batches in a job shop. As demand for the boards picks up,
a decision is
made to develop a flow line for assembly. The design and
implementation of
this new line is a project.
96. 1.3 Characteristics of Projects
Although the Manhattan project—the development of the first
atomic bomb
—is considered by many to be the first instance when modern
project
management techniques were used, ancient history is replete
with examples.
Some of the better known ones include the construction of the
Egyptian
pyramids, the conquest of the Persian Empire by Alexander the
Great, and
the building of the Temple in Jerusalem. In the 1960s, formal
project
management methods received their greatest impetus with the
Apollo
program and a cluster of large, formidable construction
projects.
Today, activities such as the transport of American forces in
Operations in
Iraq and Afghanistan, the pursuit of new treatments for AIDS
and Ebola, and
the development of the joint U.S.–Russian space station and the
manned
space mission to Mars are examples of three projects with which
most of us
are familiar. Additional examples of a more routine nature
include:
Selecting a software package
Developing a new office plan or layout
Implementing a new decision support system
Introducing a new product to the market
97. Designing an airplane, supercomputer, or work center
Opening a new store
Constructing a bridge, dam, highway, or building
Relocating an office or a factory
Performing major maintenance or repair
Starting up a new manufacturing or service facility
Producing and directing a movie
1.3.1 Definitions and Issues
As the list above suggests, a project may be viewed or defined
in several
different ways: for example, as “the entire process required to
produce a new
product, new plant, new system, or other specified results”
(Archibald 2003)
or as “a narrowly defined activity which is planned for a finite
duration with a
specific goal to be achieved” (General Electric Corporation
1983). Generally
speaking, project management occurs when emphasis and
special attention
are given to the performance of nonrepetitive activities for the
purpose of
meeting a single set of goals, typically under a set of constraints
such as time
and budget constraints.
98. By implication, project management deals with a one-time
effort to achieve a
focused objective. How progress and outcomes are measured,
though,
depends on a number of critical factors. Typical among these
are technology
(specifications, performance, quality), time (due dates,
milestones), and cost
(total investment, required cash flow), as well as profits,
resource utilization,
market share, and market acceptance.
These factors and their relative importance are major issues in
project
management. These factors are based on the needs and
expectations of the
stakeholders. Stakeholders are individuals and parties interested
in the
problem the project is designed to solve or in the solution
selected. With a
well-defined set of goals, it is possible to develop appropriate
performance
measures and to select the right technology, the organizational
structure,
required resources, and people who will team up to achieve
these goals.
Figure 1.2 summarizes the underlying processes. As illustrated,
most projects
are initiated by a need. A new need may be identified by
stakeholders such as
a customer, the marketing department, or any member of an
organization.
When management is convinced that the need is genuine, goals
may be
defined, and the first steps may be taken toward putting together
a project
99. team. Most projects have several goals covering such aspects as
technical and
operational requirements, delivery dates, and cost. A set of
potential projects
to undertake should be ranked by stakeholders based on the
relative
importance of the goals and the perceived probability of each
potential
project to achieve each of the individual goals.
Figure 1.2
Major processes in project management.
Figure 1.2 Full Alternative Text
On the basis of these rankings and a derived set of performance
measures for
each goal, the technological alternatives are evaluated and a
concept (or
initial design) is developed along with a schedule and a budget
for the
project. This early phase of the project life cycle is known as
the initiation
phase, the front end of the project, or the conceptual phase. The
next step is
to integrate the design, the schedule, and the budget into a
project plan
specifying what should be done, by whom, at what cost, and
when. As the
plan is implemented, the actual accomplishments are monitored
100. and recorded.
Adjustments, aimed at keeping the project on track, are made
when
deviations or overruns appear. When the project terminates, its
success is
evaluated based on the predetermined goals and performance
measures.
Figure 1.3 compares two projects with these points in mind. In
project 1, a
“design to cost” approach is taken. Here, the budget is fixed and
the
technological goals are clearly specified. Cost, performance,
and schedule are
all given equal weight. In project 2, the technological goals are
paramount
and must be achieved, even if it means compromising the
schedule and the
budget in the process.
Figure 1.3
Relative importance of goals.
Figure 1.3 Full Alternative Text
The first situation is typical of standard construction and
manufacturing
projects, whereby a contractor agrees to supply a system or a
product in
accordance with a given schedule and budget. The second
situation is typical
of “cost plus fixed fee” projects where the technological
uncertainties argue
against a contractor’s committing to a fixed cost and schedule.
This
arrangement is most common in a research and development
(R&D)
101. environment.
A well-designed organizational structure is required to handle
projects as a
result of their uniqueness, variety, and limited life span. In
addition, special
skills are required to manage them successfully. Taken together,
these skills
and organizational structures have been the catalyst for the
development of
the project management discipline. Some of the accompanying
tools and
techniques, though, are equally applicable in the manufacturing
and service
sectors.
Because projects are characterized by a “one-time only” effort,
learning is
limited and most operations never become routine. This results
in a need for
extensive management involvement throughout the life cycle of
the project.
In addition, the lack of continuity leads to a high degree of
uncertainty.
1.3.2 Risk and Uncertainty
In project management, it is common to refer to very high levels
of
uncertainty as sources of risk. Risk is present in most projects,
especially in
the R&D environment. Without trying to sound too pessimistic,
it is prudent
to assume that what can go wrong will go wrong. Principal
sources of
102. uncertainty include random variations in component and
subsystem
performance, inaccurate or inadequate data, and the inability to
forecast
satisfactorily as a result of lack of experience. Specifically,
there may be
1. Uncertainty in scheduling. Changes in the environment that
are
impossible to forecast accurately at the outset of a project are
likely to
have a critical impact on the length of certain activities. For
example,
subcontractor performance or the time it takes to obtain a long-
term loan
is bound to influence the length of various subtasks. The
availability of
scarce resources may also add to uncertainty in scheduling.
Methods are
needed to deal with problematic or unstable time estimates.
Probability
theory and simulation both have been used successfully for this
purpose,
as discussed in Chapter 9.
2. Uncertainty in cost. Limited information on the duration of
activities
makes it difficult to predict the amount of resources needed to
complete
them on schedule. This translates directly into an uncertainty in
cost. In
addition, the expected hourly rate of resources and the cost of
materials
103. used to carry out project tasks may possess a high degree of
variability.
3. Technological uncertainty. This form of uncertainty is
typically present
in R&D projects in which new (not thoroughly tested and
approved)
technologies, methods, equipment, and systems are developed or
used.
Technological uncertainty may affect the schedule, the cost, and
the
ultimate success of the project. The integration of familiar
technologies
into one system or product may cause technological uncertainty
as well.
The same applies to the development of software and its
integration with
hardware.
There are other sources of uncertainty, including those of an
organizational
and political nature. New regulations might affect the market
for a project,
whereas the turnover of personnel and changes in the policies of
one or more
of the participating organizations may disrupt the flow of work.
To gain a better understanding of the effects of uncertainty,
consider the three
projects mentioned earlier. The transport of American armed
forces in
Operation Iraqi Freedom faced extreme political and logistical
uncertainties.
In the initial stages, none of the planners had a clear idea of
how many troops
would be needed or how much time was available to put the
104. troops in place.
Also, it was unknown whether permission would be granted to
use NATO air
bases or even to fly over European and Middle Eastern
countries, or how
much tactical support would be forthcoming from U.S. allies.
The development of a treatment for AIDS is an ongoing project
fraught with
technological uncertainty. Hundreds of millions of dollars have
already been
spent with little progress toward a cure. As expected,
researchers have taken
many false steps, and many promising paths have turned out to
be dead ends.
Lengthy trial procedures and duplicative efforts have produced
additional
frustration. If success finally comes, it is unlikely that the
original plans or
schemes will have predicted its form.
The design of the U.S.–Russian space station is an example in
which virtually
every form of uncertainty is present. Politicians continue to
play havoc with
the budget, while other stakeholders like special interest groups
(both friendly
and hostile) push their individual agendas; schedules get altered
and
rearranged; software fails to perform correctly; and the needed
resources
never seem to be available in adequate supply. Inflation, high
turnover rates,
105. and scaled-down expectations take their toll on the internal
workforce, as
well as on the legion of subcontractors.
The American Production and Inventory Control Society has,
tongue-in-
cheek, fashioned the following laws in an attempt to explain the
consequences of uncertainty on project management.
Laws of Project Management
1. No major project is ever installed on time, within budget or
with the
same staff that started it. Yours will not be the first.
2. Projects progress quickly until they become 90% complete,
then they
remain at 90% complete forever.
3. One advantage of fuzzy project objectives is that they let you
avoid the
embarrassment of estimating the corresponding costs.
4. When things are going well, something will go wrong.
When things just cannot get any worse, they will.
When things seem to be going better, you have overlooked
something.
5. If project content is allowed to change freely, then the rate of
change
will exceed the rate of progress.
6. No system is ever completely debugged. Attempts to debug a
system
