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Managing Diversity
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Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Dec 25, 2015

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Clarissa Rose
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Page 1: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Managing Diversity

Page 2: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Diversity

Characteristics of individuals that shape their identities and the experiences they have in society

Page 3: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

The workplace is becoming increasingly diverse with respect to:

• age,

• race,

• gender,

• language,

• ability,

• religion, and

• sexual orientation

Page 4: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Age

Any organization needs a good mix of age.• Younger workers bring enthusiasm and passion

to the organization. They are the impetus for change. They also have lower salaries.

• Older workers have the experience to bridle the younger workers. They provide the culture and norms. They have higher salaries.

Page 5: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Race

Minorities will form the majority of Americans,

Hispanics (not blacks) will be the most populous minority, and

The English language as we know it may not exist

Page 6: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

U.S. Census Bureau 2050 population projection

50% "white" 20% Hispanic 15% Black 10% Asian

Page 7: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Hispanics

Fastest growing US minority (will surpass Blacks around 2029)

About 50% of Hispanics living in America do NOT speak English in their homes

Hispanics place high value on religious and family priorities

Page 8: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Hispanics

Certain states are experiencing especially rapid growth in its Hispanic population

• California 9.2 million

• Texas 5.3 million

• New York 2.4 million

• Florida 2.0 million

• Illinois 1.1 million

Page 9: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Asians

Asians place high value on education and work priorities

Page 10: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Gender

Women will experience ever-increasing levels of workplace equity.

Glass ceiling • general cultural barrier excluding certain types

of individuals from upper‑level management in larger companies

Page 11: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Gender

Objective comparison indicate that women have improved considerably more than other minority groups

• Example: pay differences, recently 71 cents on the dollar versus historical 50 cents on the dollar.

Page 12: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Linda Wachner, CEO, Warnaco Group,

$11.16 million

• Jill Barad, CEO, Mattel, $6.17 million

• Carol Bartz, CEO, Autodesk, $5.51 million

• Sally Crawford, COO, Healthsource, $4.02 million

Page 13: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Estée Lauder, Chairwoman Emeritus, Estée

Lauder, $3.82 million

• Cuneo, Executive VP, Conseco, $3.68 million

• Jane Hirsh, Pres. IB, Copley Pharmaceutical, $3.39 million

Page 14: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Nancy Pedor, CEO, Gymboree, $3.19 million

• Donna Karan, CEO, Donna Karan International, $.2.73 million

Page 15: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

For Your Information

Two-thirds of professional women working fulltime say they would turn down the presidency of their company if it were offered.

The source is USA Today, Tu/10/29/96, p. B1

Page 16: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Reasons

Reasons frequently cited include • "too stressful,"

• "happy with current job,"

• "value personal/family time,"

• "too little experience," and

• "too much responsibility."

Page 17: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Abilities

ADA -- American Disabilities Act • Became law in the 1990's

• 50% of all cases involve wrongful discharge

• 20% of all cases involve inadequate access

• 15% of all cases involve bias in hiring

Many cases are only tangentially related to the spirit of the law

• Example: Medical test anxiety

Page 18: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Sexual Orientation

Page 19: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Prejudice, Discrimination, & Stereotypes

Corporate Culture--Beliefs and norms that govern organizational behavior in a firm.

Prejudice--A preconceived judgment about an individual or group of people.

Discrimination--Unfair or inequitable treatment based on prejudice.

Page 20: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Types of Discrimination

Two types of discrimination can be brought against employers:

• Unequal or DISPARATE TREATMENT

• ADVERSE IMPACT

Page 21: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Unequal or DISPARATE TREATMENT

A firm intentionally discriminates against a worker or candidate. Pure bias. Outright discrimination.

Page 22: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

ADVERSE IMPACT

UNINTENTIONAL DISCRIMINATION. An exclusion by the company that is not MEANT to DISCRIMINATE but does.

• Ex. Height requirements for FIREFIGHTERS OR

POLICE. They did not mean to do so, but women and some groups like HISPANICS were often discriminated against in the hiring process.

Page 23: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Important Legislation

Equal Pay Act 1963 Civil Rights Act of 1964 and 1991 Americans with Disabilities Act Age Discrimination in Employment Act Sexual Harassment provisions of Civil

Rights Acts

Page 24: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Equal Pay Act 1963

Prohibits discrimination on the basis of sex in the payment of wages or benefits where

• “men and women perform work of similar skill, effort and responsibility for the same employer under similar working conditions.”

Page 25: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Civil Rights Act of 1964

Concern with Title 7 which includes most of employment-related legislation.

• “prohibits employers from basing employment decisions on a person’s race, color, religion, sex or national orgin.”

Page 26: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Civil Rights Act of 1964

Important: Section 703 A

• “unlawful employment practice for employer to discriminate in areas of compensation, terms, conditions or privileges of employment.”

Terms and conditions include promotion, safety, employment contracts. Covers most public and private firms.

Page 27: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Civil Rights Act of 1991

Made it easier for employees to sue but put “caps” on the damages that an employee could receive under Civil Rights Act.

• $300,000

Page 28: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Civil Rights Act of 1964 and 1991

Civil Rights Acts 1964 or 1991 DO NOT cover Sexual Orientation

Page 29: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Investigates complaints, tries to reconcile the parties and gives a “right to sue letter” if evidence is found for the worker.

Page 30: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

AMERICAN’S WITH DISABILITIES ACT 1990

Title 1 covers workplace.

• Protects applicants and workers with disabilities against discrimination.

• Individual with Disability. “ Person who has a mental or physical impairment that substantially limits one or more major life activities, has a record of such an impairment or is regarded as having such an impairment.

• Major life activities that an average person can perform with little or no difficulty such as walking, breathing, seeing, hearing, speaking, learning, working.

Page 31: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

AMERICAN’S WITH DISABILITIES ACT 1990

• Covers persons with AIDS and HIV

• Covers recovering alcoholics and drug addicts that are no longer using substances.

• Divides job into “marginal” and “Essential” tasks.

• Essential tasks are those critical to the performing of the job.

• Marginal tasks are those that could be easily placed with another worker.

Page 32: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

AMERICAN’S WITH DISABILITIES ACT 1990

• Disabled must be able to do “essential” tasks.

• Firms must make “reasonable accommodation” to the needs of disabled workers.

• Employers may ask if the applicant has “any conditions that may prohibit successful performance on the job.

• Promotes “job related questions.”

Page 33: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

AMERICAN’S WITH DISABILITIES ACT 1990

• Disabilitiy or health information must be kept separate from other employment records.

Page 34: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Age Discrimination in Employment Act

Prohibits discrimination for workers 40 years or older

Employers cannot ask age on application.

Firms can “get around” this by looking at other information provided by applicant

Page 35: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Sexual Harassment

Defined as “unwelcome sexual advances, requests for sexual favors and other verbal or physical contact of a sexual nature.”

Page 36: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Sexual Harassment

Two categories:

• Quid Pro Quo: Sexual activity is demanded in return for getting or keeping a job.

• Hostile Work Environment. When behavior of co-workers, supervisors, customers or anyone else in work environment is sexual in nature and seen as offensive.

Page 37: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Sexual Harassment

Third Party Harassment: Managers responsible for actions of workers and customers.

Page 38: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Sexual Harassment

Action should be swift toward someone identified as causing sexual harassment.

• Write up complaint in personnel record and sign.

• Talk to the victim and tell him/her that problem has been followed up on.

• Have a written and known policy.

Page 39: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

Summary of Title VII, ADA and ADEA

It is illegal to discriminate in the following ways:

• Staffing: (i.e., hiring and firing, promotion, transfer, layoff, recall)

• Compensation: (i.e., worker assignment, worker classifications benefits)

• Job advertisements, recruitment, testing

• Use of company facilities

• Training and apprenticeship programs

• Pay, retirement plans and disability leave.

Page 40: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

When can a company discriminate?

If it is a Bona Fide Occupational Qualification.

• A characteristic which is “reasonably necessary to the operation of the particular business”

• Race cannot be a BFOQ.

Page 41: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

When can a company discriminate?

Employers can discriminate in pay due to bona fide seniority system, merit or incentive systems.

“Protected classes” are groups that have had so much discrimination in the past that the courts have given them special status.

• Minorities and women.

Page 42: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

What should supervisors do?

Document practices Have consistent practices Promote and hire qualified workers Base decisions on proof Be honest, consistent, know company

policies Motivate workers

Page 43: Managing Diversity. Diversity Characteristics of individuals that shape their identities and the experiences they have in society.

What should supervisors to do?

Know how to conduct performance analysis

Discuss work when employee fails to meet performance standards.

Communicate with employees