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Chapter Chapter 7 The Impact of Diversity: Trends and Issues
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Page 1: Chapter 7 The Impact of Diversity: Trends and Issues.

ChapterChapter

7

The Impact of Diversity: Trends and Issues

Page 2: Chapter 7 The Impact of Diversity: Trends and Issues.

Society is Either:Society is Either:

Homogenous: Their members share a

relatively uniform or standard set of values and backgrounds.

Homogenous: Their members share a

relatively uniform or standard set of values and backgrounds.

Heterogeneous: A society composed of

many dissimilar people with a varied mix of backgrounds, values, needs, and interests.

Heterogeneous: A society composed of

many dissimilar people with a varied mix of backgrounds, values, needs, and interests.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 3: Chapter 7 The Impact of Diversity: Trends and Issues.

Primary and Secondary Dimensions of DiversityPrimary and Secondary Dimensions of Diversity

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 4: Chapter 7 The Impact of Diversity: Trends and Issues.

CAUTION: Stereotyping

Must Be Avoided!!!!

CAUTION: Stereotyping

Must Be Avoided!!!!

Stereotyping: Placing people in broad social groups, then generalizing

about and labeling them because they are part of a given group.

Stereotyping: Placing people in broad social groups, then generalizing

about and labeling them because they are part of a given group.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 5: Chapter 7 The Impact of Diversity: Trends and Issues.

Diversity Challenges and OpportunitiesDiversity Challenges and Opportunities

Workforce Diversity: The movement of people

from differing demographic and ethnic backgrounds and value organizations into the organizational mix.

Key Diversity Issues: Growing presence of

women in the workforce

Balancing work and family

Growth in racial and ethnic minorities

Age and generational influences

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 6: Chapter 7 The Impact of Diversity: Trends and Issues.

The Growing Presence of Women in the WorkforceThe Growing Presence of Women in the Workforce

In 1955, 35% of U.S. women worked, today 60% work.

In 1972, U.S. women help 19% of management positions, today they hold 50%.

More CEO’s chairs are being filled by women.

In Fortune 500 companies, women hold 12.4% of board seats.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 7: Chapter 7 The Impact of Diversity: Trends and Issues.

Women in Top ManagementWomen in Top Management

The Glass Ceiling: Systematic barriers that

prevent women from advancing in the organization.

The Glass Border: The tendency for women

not to receive international assignments important for their advancement.

The Glass Ceiling: Systematic barriers that

prevent women from advancing in the organization.

The Glass Border: The tendency for women

not to receive international assignments important for their advancement.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 8: Chapter 7 The Impact of Diversity: Trends and Issues.

Balancing Work and FamilyBalancing Work and Family

Work/Family Conflict: The sense that work and

family demands interfere with each other.

Dual-Career Household: A family in which both

partners are actively pursuing full-time careers.

Work/Family Conflict: The sense that work and

family demands interfere with each other.

Dual-Career Household: A family in which both

partners are actively pursuing full-time careers.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 9: Chapter 7 The Impact of Diversity: Trends and Issues.

Ways Companies Meet Work and Family DemandsWays Companies Meet Work and Family Demands

Telecommuting: Situations where workers spend part of each week

working at home and communicating with the office via computer.

Flextime: Work arrangements that allows employees to adjust

work hours, often to meet other responsibilities. Job Sharing:

Work arrangements where two employees share one job and split all the duties, responsibilities, and compensation of that job.

Telecommuting: Situations where workers spend part of each week

working at home and communicating with the office via computer.

Flextime: Work arrangements that allows employees to adjust

work hours, often to meet other responsibilities. Job Sharing:

Work arrangements where two employees share one job and split all the duties, responsibilities, and compensation of that job.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 10: Chapter 7 The Impact of Diversity: Trends and Issues.

The Growth of Racial

and Ethnic Minorities

The Growth of Racial

and Ethnic Minorities

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Population Workforce2002 2005 2002 2005

White (non-Hispanic) 70.6 69.3 72.5 71.2African American 12.9 13.1 12.0 12.3Hispanic 12.4 13.3 11.2 12.0Asian 4.3 4.6 5.3 6.5

White (non-Hispanic) 70.6 69.3 72.5 71.2African American 12.9 13.1 12.0 12.3Hispanic 12.4 13.3 11.2 12.0Asian 4.3 4.6 5.3 6.5

Page 11: Chapter 7 The Impact of Diversity: Trends and Issues.

Racial and Ethnic Issues Management FacesRacial and Ethnic Issues Management Faces

An Ethnic and Racial Glass Ceiling.

Feelings of Being Unfairly Treated on the Job.

An Ethnic and Racial Glass Ceiling.

Feelings of Being Unfairly Treated on the Job.

Caucus Groups: Groups of employees

who get together to address key concerning relating to members of their particular group.

Caucus Groups: Groups of employees

who get together to address key concerning relating to members of their particular group.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 12: Chapter 7 The Impact of Diversity: Trends and Issues.

Age and Generational InfluencesAge and Generational Influences

Baby Boomers: The generation of

Americans born between 1946 and 1964.

Issues with Baby Boomers: The Aging or “Graying”

of the Workforce.

Employee Retraining: Regularly providing the

education and training workers need to expand their base of skills so the can meet the needs of business.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 13: Chapter 7 The Impact of Diversity: Trends and Issues.

Age and Generational Influences Age and Generational Influences

Generation X: People born between

1965 and 1980.

Issues with Gen Xers: Will not sacrifice family for

career. Will work hard and be

productive leaders. Place high value on family,

friendships, and social causes.

Loyal to professions not employers.

Value health and fitness.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 14: Chapter 7 The Impact of Diversity: Trends and Issues.

Age and Generational Influences Age and Generational Influences

Generation Y: Today’s teenagers born

between 1981 and 1999.

Issues with Generation Y: The largest group since

Baby Boomers – 17 million.

Racially diverse – 1/3 not Caucasian.

Most have working mothers.

Have strong buying power. Highly computer and

technology savvy.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 15: Chapter 7 The Impact of Diversity: Trends and Issues.

FACT: The Times Are ChangingFACT: The Times Are Changing

The U.S. divorce rate has been declining over the past 20 years.

15% of Americans have tattoos, body piercings, or both.

More than 4% of minority Americans own a business.

Over 50% of health club and fitness center members are over 40.

57% of U.S. companies have on-site child care.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 16: Chapter 7 The Impact of Diversity: Trends and Issues.

FACT: The Times Are ChangingFACT: The Times Are Changing

24% of companies let employees bring children to work in an emergency.

In recent research, 44% of African Americans felt they were treated unfairly on the job.”

Most Gen Xers are married and 2/3 of Gen X women have children.

32% of all households are non-family households. From 1990 to 2000, non-family households grew 2x as fast as traditional household families.

24% of companies let employees bring children to work in an emergency.

In recent research, 44% of African Americans felt they were treated unfairly on the job.”

Most Gen Xers are married and 2/3 of Gen X women have children.

32% of all households are non-family households. From 1990 to 2000, non-family households grew 2x as fast as traditional household families.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 17: Chapter 7 The Impact of Diversity: Trends and Issues.

Accommodating Individuals with Disabilities.Accommodating Individuals with Disabilities.

FACT: Over 20%, or 54 million

Americans have some level of disability.

The Americans with Disabilities Act requires businesses to be more responsive to the unique needs of disabled workers.

FACT: Over 20%, or 54 million

Americans have some level of disability.

The Americans with Disabilities Act requires businesses to be more responsive to the unique needs of disabled workers.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 18: Chapter 7 The Impact of Diversity: Trends and Issues.

Teams and DiversityTeams and Diversity

Typically, teams work well to address what needs to be done.

In diverse teams, conflict and clashes can greatly increase.

Successful companies train teams to appreciate, respect, and work through differences to reach better decisions.

Strong organizations know they need diversity in their Boards of Directors.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 19: Chapter 7 The Impact of Diversity: Trends and Issues.

Global Business and DiversityGlobal Business and Diversity

Keys for Successful Global Operations: Cultural sensitivity – understanding what a

culture appreciates and respects

Cross-cultural literacy

Respect for cultural values and norms

Sensitivity to the keys that define a culture: Political philosophy Economic philosophy Educational systems Language The social structure Religious and ethical systems

Keys for Successful Global Operations: Cultural sensitivity – understanding what a

culture appreciates and respects

Cross-cultural literacy

Respect for cultural values and norms

Sensitivity to the keys that define a culture: Political philosophy Economic philosophy Educational systems Language The social structure Religious and ethical systems

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 20: Chapter 7 The Impact of Diversity: Trends and Issues.

Issues in Diversity ManagementIssues in Diversity Management

Diversity Management: Putting together a well-

thought-out strategy for attracting, motivating, retaining, and fully utilizing the talents of competent people regardless of their race, gender, ethnicity, religion, physical ability, or sexual orientation.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 21: Chapter 7 The Impact of Diversity: Trends and Issues.

Government Actions Affecting Diversity ManagementGovernment Actions Affecting Diversity Management

The Equal Employment Opportunity (EEO) Act “A business cannot deny a person a job because of race,

gender, ethnicity, age, or sexual preference.”

Affirmative Action Directs businesses to take positive steps to hire and

promote members of the classes noted in the EEO Act.

Assimilation: The assumption that women and minorities should blend in

and learn how to work within the existing organization and its culture.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Page 22: Chapter 7 The Impact of Diversity: Trends and Issues.

Why Business Must Be Concerned

With Diversity Management

Why Business Must Be Concerned

With Diversity Management

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Arguments for Diversity Management

Resource Acquisition Attract Skilled and talented workforceResource Retention Keep the talent of their workforceResource Utilization Build an environment where everyone can contribute fullyCustomer Sensitivity Better understand and respond to broad

base of customersInnovation and CreativityBring fresh ideas and novel approachesLegal Requirements Respond to and avoid legal problemsEthical Stance The right thing to do

Resource Acquisition Attract Skilled and talented workforceResource Retention Keep the talent of their workforceResource Utilization Build an environment where everyone can contribute fullyCustomer Sensitivity Better understand and respond to broad

base of customersInnovation and CreativityBring fresh ideas and novel approachesLegal Requirements Respond to and avoid legal problemsEthical Stance The right thing to do

Page 23: Chapter 7 The Impact of Diversity: Trends and Issues.

Keys to Building a Diversity Management CultureKeys to Building a Diversity Management Culture

Top Management Champions

Diversity Audit A snapshot of how good a job a business is doing in

the area of diversity management.

Goals and Accountability

Education, Training, and Support

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.