Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 11-0 Bateman Snell Management 5th Edition Competing in the New Era.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Bateman Snell

Management

5thEdition

Competingin theNew Era


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Part ThreeChapter 11 - Managing The Diverse Workforce

Chapter OutlineDiversity: A Brief HistoryDiversity TodayManaging Diversity versus Affirmative ActionMulticultural OrganizationsHow Organizations Can Cultivate a Diverse

Workforce


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Learning ObjectivesLearning Objectives

After studying Chapter 11, you will know: how changes in the U.S. workforce make diversity a critical

organizational and managerial issue the distinction between affirmative action and managing

diversity how companies can gain a competitive edge by effectively

managing diversity what challenges a company is likely to encounter with a

diverse workforce how an organization can take steps to cultivate diversity


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Diversity: A Brief HistoryDiversity: A Brief HistoryManaging diversity

understanding and appreciating employee differences to build a more effective and profitable organization

recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage

not a new issueEuropean immigrants came to the U.S. throughout the 1800s and early 1900s

1960s - white male members of ethnic groups acceptedtoday, fight is for acceptance of racial minorities and women


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Diversity TodayDiversity TodayDiversity

broad term used to refer to all kinds of differences members of different groups share common values, attitudes,

and perceptionsthere is still much diversity within each group

U.S. businesses must learn to manage a diverse workforceSize of the workforce

slowing in both the number of people joining the labor force and the rate of labor force growth

U.S. traditionally had a surplus of labornumber of jobs created expected to exceed the growth of the labor force


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Components Of A Diversified Workforce

Components Of A Diversified Workforce

OtherReligious affiliationVeteran statusSexual orientationExpectations and valuesLifestyleSkill levelEducational levelEconomic classWorkstyleFunction and/or position within the company

Age

Gender

Physically andmentally disabled

Racial and ethnicminorities in the

United States

ImmigrantsWorkforceDiversity


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How Effective Is Your Diversity Program?

How Effective Is Your Diversity Program?

Effective22%

Somewhateffective

49%

Undecided13%

VeryEffective

8%Somewhatineffective 8%

Ineffective2%


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Diversity Today (cont.)Diversity Today (cont.)Workers of the future

until recently, white, American born males dominated the U.S. workforce

now, they only account for 15 percent of the net growth Gender issues - growing number of women working outside

the homebalancing work life with family responsibilities and parenting presents an enormous challenge

average full-time working female earns about 75% of the average full-time working male

result of both the level and type of work performed by women glass ceiling - invisible barrier hindering women and minorities from

moving beyond a certain level in the corporate hierarchy


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Diversity Today (cont.)Diversity Today (cont.)

Workers of the future (cont.) Gender issues (cont.)

sexual harassment - conduct of a sexual nature that has negative consequences for employment

EEOC - investigates and prosecutes cases of sexual harassment quid pro quo harassment - submission to or rejection of sexual

conduct is used as a basis for employment decisions hostile environment - unwelcome sexual conduct has the purpose

or effect of reasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment

the changing status of women has given men the opportunity to redefine their roles, expectations, and lifestyles


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Diversity Today (cont.)Diversity Today (cont.)Workers of the future (cont.)

Minorities and immigrants - growing percentage of the workforce

term “minority” as typically used may quickly be outdatedtroubling disparities in employment and weekly earningsorganizations trying to provide more opportunities for minorities

Mentally and physically disabled - largest unemployed minority population is the U.S.

disability - a physical or mental impairment that substantially limits one or more major life activities

disabled lack access to educational and workplace environmentsattitudes of employers an important barrier to employment


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14.50%

11.20%

7.40%

19.30%

15.10%

10.60%1995

1992

1995

1992

1995

1992

Senior

Front-line

Middle

Percentage Of Minority ManagersPercentage Of Minority Managers


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Age of the workforce average age is increasing

many older workers are opting for early retirementfewer new workers will enter the labor force than will be lost through retirement

retirement-age workers can be encouraged to remain or reenter the workforce on a flexible or part-time basis


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0% 20% 40% 60% 80% 100%

Perceived Benefits And Liabilities Of Employing Older Workers

Perceived Benefits And Liabilities Of Employing Older Workers

Turnover

Job skills

Productivity

Health care costs

Suitability for training Flexibility for taking new job assignments

Cost effectiveness

Motivation

Absenteeism

Older workersare better

Not sureOlder workersare worse

Older workersare the same


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Future jobs and workforce qualifications the U.S. is becoming a predominantly service-oriented

economy people without high school diplomas are at a distinct

disadvantage gap is growing between the knowledge and skills jobs

require and those many employees and applicants possessliteracy is often the underlying problememployers are combating this basic-skills gap

offer in-house basic-skills training program


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Managing Diversity Versus Affirmative Action

Managing Diversity Versus Affirmative Action

Affirmative action (AA) instituted to curb discrimination and correct the past exclusion

of women and minorities from U.S. organizations nonetheless, employment discrimination still persists

AA has not adequately improved the upward mobility of women and minorities

reverse discrimination exists when qualified white males are passed over for employment opportunities

Managing diversity means moving beyond legislated mandates to embrace a

proactive business philosophy that values differences eliminates barriers that hinder attainment of full potential


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Managing Diversity Versus Affirmative Action (cont.)


Competitive advantage through diversity original impetus to diversity workforces was social

responsibility and legal necessitytoday, many organizations are also approaching diversity from a more practical, business-oriented perspective

Ability to attract and retain motivated employees companies with reputation for diversity have competitive advantage in the labor market

companies will be sought out by most qualified employeesemployees who believe that their differences are valued may become more loyal, productive, and committed


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Competitive advantage through diversity (cont.) Better perspective of a differentiated market

as the composition of the American workforce changes, so does the customer base of these companies

diverse customers may prefer to patronize such organizationsa multicultural workforce can provide a company with greater knowledge of the preferences and consuming habits of this diversified marketplace

Ability to leverage creativity and innovation in problem solving

people from different backgrounds hold different perspectivesdiverse work groups are freer to deviate from traditional approaches


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Competitive advantage through diversity (cont.) Enhancement of organizational flexibility

managing diversity requires a corporate culture that tolerates different styles and approaches

less restrictive policies and procedures and less standardized operating methods enable organizations to become more flexible

Challenges of a diverse workforce Lower cohesiveness - lack of similarity in culture causes

diverse groups to be less cohesive than homogeneous groups Communication problems - most common negative effect

diversity increases errors and misunderstandings


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Challenges of a diverse workforce (cont.) Mistrust and tension - mistrust and misunderstanding of

those who are different because of a lack of contact and low familiarity

Stereotyping - inappropriately stereotype their “different” colleagues rather than accurately perceiving and evaluating those individuals’ contributions, capabilities, aspirations, and motivations

stereotypes affect how people are treated


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Multicultural OrganizationsMulticultural OrganizationsMonolithic organizations

an organization that has a low degree of structural integrationemploys few women, minorities, or other groups that differ from the majority

minority employees hold low status jobs minority employees must adopt the norms of the majority

has a highly homogeneous employee population

Plural organizations have a more diverse employee population use an affirmative action approach to managing diversity some acceptance of minorities into the informal network much less discrimination and less prejudice


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Multicultural Organizations (cont.)Multicultural Organizations (cont.)

Multicultural organization values cultural diversity and seeks to utilize and encourage it fully integrate gender, racial, and minority group members

both formally and informally absence of prejudice and discrimination low levels of intergroup conflict synergistic environment

all members contribute to their maximum potential and the advantages of diversity can be fully realized


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How Organizations Can Cultivate A Diverse Workforce

How Organizations Can Cultivate A Diverse Workforce

Top management leadership and commitment top management support for diversity programs is critical incorporate the organization’s attitudes toward diversity into

the corporate mission statement, strategic plans, and objectives

establish corporate offices or committees to coordinate the companywide diversity effort that provides feedback to top management

minority advisory groups or task forces to monitor organizational policies, practices, and attitudes

assess program impact on diverse groupsprovide feedback and suggestions to top management


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How Organizations Can Cultivate A Diverse Workforce (cont.)


Organizational assessment establish an ongoing assessment of the organization’s

workforce, culture, policies, and practicesidentify problem areasmake recommendations where changes are needed

corporate values and norms should be identified and critically evaluated regarding their necessity and their impact on the diverse workforce


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Attracting employees Recruitment - a company’s image can be a strong recruiting

toola reputation for hiring and promoting all types of people can be a competitive advantage

many minorities and economically disadvantaged people are physically isolated from job opportunities

companies can bring information about job opportunities to the source of labor

companies can transport labor to the jobs


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Steps In Diversity PlanningSteps In Diversity Planning

Set generalqualifications

Set numericalstandards

Calculatepercentages

IdentifyqualifiedworkersMatch positions

to U.S. censuscategories


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Attracting employees (cont.) Accommodating work and family needs

corporate work and family policies are now one of the most important recruiting tools

providing child care leads to: decreased turnover and absenteeism improved morale

concerns for dual-career couples expressed by: limiting relocation requirements provide job search assistance to relocated spouses


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Attracting employees (cont.) Alternative work arrangements

offer flexible work schedules and arrangements compressed workweeks job sharing - two part-time workers share one full-time job teleworking - working from home telecommuting - working from home via computer hookup to the

main worksite


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Guidelines For Diversity TrainingGuidelines For Diversity Training

Diversitytraining

Position trainingin diversity

strategy

Thoroughlytest training

Use participativedesign process

Do needsanalysis

Incorporatediversity programs

into training

Distinguishbetween education

and training


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Diversity training attempt to identify and reduce hidden biases and develop

skills needed to effectively manage a diversified workforce Awareness building - designed to increase awareness of the

meaning and importance of valuing diversitysensitize employees to assumptions they make about othersbecome familiar with myths, stereotypes, and cultural differences

become familiar with organizational barriers that inhibit the full contributions of all employees

teach the unwritten “rules” or cultural values to those who need to know them


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Diversity training (cont.) Skill building - designed to allow all employees and managers

to develop the skills they need to deal effectively with one another and customers in a diverse environment

most of the skills taught are interpersonaldevelop personal action plans before they leave the programexperiential exercises and videotapes often are used

Retaining employees Support groups - form minority networks to promote

information exchange and social supportprovide emotional and career supporthelp diverse employees understand work norms and cultures


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Retaining employees (cont.) Mentoring - higher-level managers help ensure that high-

potential people are introduced to top management and socialized into the norms and values of the organization

help diverse employees enter the informal network Career development and promotion - establish teams to

evaluate the career progress of diverse employeesdevise ways to move them up through the ranks


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Retaining employees (cont.) Systems accommodation - recognize:

cultural and religious holidaysdiffering modes of dressdietary restrictionsneeds of individuals with disabilities

Accountability - managers held accountable for workforce development

performance appraisal and reward systems reinforce the importance of effective diversity management

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 11-0 Bateman Snell Management 5th Edition Competing in the New Era.

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