Diversity BUSA 220 Organizational Behavior Professor Wallace
What does Diversity mean to you?• Diversity: The differences and similarities that exist among all human beings.• Stand up, then sit down if what I suggest doesn’t apply to you.• Once sitting, if something new applies, stand back up.
The 4 Layers of Diversity Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33
Evaluate • Sam is a 55 year-old, male Sales Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam? A. Personality B. Internal C. External D. Organizational
Affirmative Action• Goal: Prevent discrimination (Never required to hire unqualified people)• Have affirmative action programs been good for society? – A=Yes, B=No• Are affirmative action programs still necessary? – A=Yes, B=No
Competitive Advantage • How can managing diversity be a competitive advantage? • Workforce diversity mirrors consumer and B2B diversity. • Diversity is required for innovation and competitive advantage. • Lower turnover, and less chance of lawsuits.
Gender – Race – Age – Sex• Women Year % Year % Year % 1951 63.9 1970 59.4 1992 70.8 – The glass ceiling is an 1953 61.3 1972 57.9 1994 72.0 invisible barrier blocking 1956 63.3 1974 58.8 1996 73.8 women and minorities from 1957 63.8 1976 60.2 1998 73.2 top management positions. 1958 63.0 1978 59.4 2000 73.3 Break it by: • Consistently exceeding 1959 61.3 1980 60.2 2002 76.6 performance expectations 1960 60.7 1982 61.7 2003 75.5 • Developing a style with 1961 59.2 1984 63.7 2005 77.0 which male managers are 1963 58.9 1986 64.3 2006 76.9 comfortable, 1964 59.1 1988 66.0 2007 77.8 • Seeking out difficult or 1966 57.6 1990 71.6 2008 77.1 challenging assignments, and 1968 58.2 1991 69.9 2009 77.0 • Having influential mentors. Source: Natl Committee on Pay Equity
Gender – Race – Age – SexRace/Gender $ Ratio White Men $47,814 100.0 %White Women 35,151 73.5 Black Men 34,480 72.1Black Women 30,398 63.6Hispanic Men 27,490 57.5 Hispanic 24,738 51.7 Women All Men $42,210 88.2 All Women $32,649 68.3 Wage Gap 77.4% Source: 2007 U.S. Census Source: Pew Research
PepsiCo Chairman & CEO Indra K. Nooyi – • President and CEO (2006). Chairman (2007). • Directed global strategy and led its restructuring: – Divested restaurants into YUM! Brands, Inc., – Acquired Tropicana and merged with Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo. – Merger with PepsiCos anchor bottlers, and the acquisition of Wimm-Bill-Dann.
PepsiCo under Nooyi’s LeadershipAnnual Category 2007 2008 2009 2010 Net Revenues 39.5B 43.3B 43.2B 57.8BRevenue and Cost of Goods Sold 16.7B 18.8B 18.5B 24.4BIncome Depreciation And Amortization 1.4B 1.5B 1.6B 2.3B Gross Income 21.4B 22.9B 23.1B 31.1B General Expenses 14.1B 15.4B 15.0B 22.8BOperatingExpenses Research And Development 364.0M 388.0M 414.0M 488.0M Total Operating Expenses 32.2B 35.8B 35.2B 49.5B
Age & the Workforce Less Workplace Politics Lower Role Turnover Models Hiring BetterPunctuality Older Customer Workers Service
Gender – Race – Age – Sex Retirees to Workers Percentages (%)
Survey Says: Degree to Work?1. Graduates may be technically competent, lack teamwork, critical thinking, and analysis skills2. Less graduates in technical fields such as science, math, and engineering.3. High school graduates working in entry-level positions do not possess necessary basic skills (national high-school graduation rate is 75%) Source: U.S. Census Bureau Statistical Abstract 2012
Self Development is Crucial • Gender, race or age: – Be exceptionally competent & seek out mentors – Build social capital – Assist work/life balance by delegating housework – Improve negotiating skills – Take credit for accomplishments – Create a partnership with spouse to be mutually supportive – Balance need to be assertive and communal
Organizational DiversityTwo Theories:• Social categorization theory – Similarity leads to liking and attraction• Information/Decision- Making Theory – Diversity leads to better task-relevant processes and decision-making
Workplace Diversity – A Choice • Demographic Faultline – Hypothetical dividing lines that may split a group into subgroups based on one or more attributes • Positive Diversity – If members were open- minded, discussed and shared information, and displayed integrative behavior, individual, team and organizational outcomes improve
The Absence of Diversity • Whether in work, school, church or family, what types of discrimination have you seen or participated in (even unwillingly?
Encouraging Diversity•What can our organizations do?•What can you do to improve yourself?
Thomas’s Action Options• Include/Exclude • Isolate – Removing Emphasis on including more individuals from authority. diverse employees, using • Tolerate – Acknowledge minority-owned companies but don’t value or accept. as vendors • Build Relationships -• Deny - That race, color, or Good relationships can gender have any impact on overcome differences decisions • Foster Mutual• Assimilate - All diverse Adaptation - Creating people will learn to fit in.. positive relationships with• Suppress - Squelching or others. This means being discouraging differences or willing to accept differences new ideas and accepting change.
Thomas’s Action Options• Include/Exclude • Isolate – Removing Emphasis on including more individuals from authority. diverse employees, using • Tolerate – Acknowledge minority-owned companies but don’t value or accept. as vendors • Build Relationships -• Deny - That race, color, or Good relationships can gender have any impact on overcome differences decisions • Foster Mutual• Assimilate - All diverse Adaptation - Creating people will learn to fit in. positive relationships with• Suppress - Squelching or others. This means being discouraging differences or willing to accept differences new ideas and accepting change.