Managing Diversity: Releasing Every Employees Potential

McGraw-Hill/Irwin

Chapter 2

Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2008The McGraw-Hill Companies, Inc. All rights reserved.

Ch. 2 Learning Objectives

1. Define diversity and review the four layers of diversity. 2. Explain the difference between affirmative action and managing diversity. 3. Explain why Alice Eagly and Linda Arlie believe that a womens career is best viewed as traveling through a labyrinth. 4. Review the demographic trends pertaining to racial groups, educational mismatches, and an aging workforce.
2-2

Ch. 2 Learning Objectives (cont)

5. Highlight the managerial implications of increasing diversity in the workforce. 6. Describe the positive and negative effects of diversity by using social categorization theory and information/decision-making theory. 7. Identify the barriers and challenges to managing diversity. 8. Discuss the organizational practices used to effectively manage diversity as identified by R. Roosevelt Thomas, Jr.
2-3

Understanding Diversity
Diversity: Host of individual differences that make us similar and different from each other Please stand up.. If the statement made doesnt pertain to you have a seat! If a statement does describe you, stand up again!

2-4

The Four Layers of Diversity

Functional Level/ Classification
Geographic Location Mgmt. Status Marital Status

Age

Income

Work Content/ Field

Parental Status

Race

Personality
Ethnicity Physical Ability Educational Background
Sexual Orientation

Personal Habits
Recreational Habits

Appearance

Union Affiliation

Division/ Dept./ Unit/ Group

Work Experience Work Location

Religion

Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33

Seniority

2-5

Test Your Knowledge

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
2-6

Affirmative Action
Goal: Prevent discrimination Never required to hire unqualified people
Your Opinion Have affirmative action programs been good for society? A=Yes, B=No Are affirmative action programs still necessary? A=Yes, B=No
2-7

Managing Diversity
Enables all people to perform up to their maximum potential. How can managing diversity be a competitive advantage?
2-8

Increased Workforce Diversity - Women

Glass Ceiling Invisible barrier blocking women and minorities from top management positions Women CEOs (as of 2008): 12 of Fortune 500 24 of Fortune 1000
2-9

Navigating a Labyrinth
Women have made great strides in organizational power and influence Labyrinth maze, difficult to find ones way Womens careers have similar twists, turns and obstructions
2-10

Increased Workforce Diversity - Race

Racial minorities are growing 2007 998 racebased charges of discrimination to EEOC
2-11

Education and Personal Income

2-12

Does the US have the skills to compete?

Worlds population of college students
30% 30 years ago now 14%

American students place in the middle to bottom of the pack in comparison to international counterparts in achievement in
Math Science General literacy

2-13

Increased Workforce Diversity - Age

2-14

Generational Differences

2-15

Your Experience
For school group projects, it has been easier to work with groups we could choose rather than ones the professor chose.
1= Strongly Disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly Agree

2-16

Managerial Implications - Gender

Provide developmental assignments to women Facilitate the labyrinth-like path to career success Women should:
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

2-17

Managerial Implications Race & Education

Race
Provide meaningful mentoring relationships to people of color

Education-based
Encourage students to become educated in technical fields Provide remedial skills training

2-18

Managerial Implications Age

Provide challenging work assignments that make a difference to the firm Give the employee considerable autonomy and latitude in completing a task. Provide equal access to training and learning opportunities when it comes to new technology. Provide frequent recognition for skills, experience, and wisdom gained over the years. Provide mentoring opportunities whereby older workers can pass on accumulated knowledge to younger employees. Ensure that older workers receive sensitive, high-quality supervision Design a work environment that is both stimulating and fun.
2-19

Pros and Cons of Diversity

Social categorization theory Similarity leads to liking and attraction Information/Decision-Making Theory Diversity leads to better task-relevant processes and decision-making

2-20

A Process Model of Diversity

2-21

Effects of Diverse Work Environments

lower job satisfaction, higher turnover, and lower productivity

Gender and racial diversity in a work group

fosters more interpersonal conflict which leads to

2-22

Effects of Diverse Work Environments

Demographic faultline Hypothetical dividing lines that may split a group into subgroups based on one or more attributes
Diverse groups had positive outcomes when.

members were open-minded, discussed and shared information, and displayed integrative behavior
2-23

Managing Diversity

What can organizations do to facilitate the POSITIVE outcomes of diversity?

2-24

Challenges to Managing Diversity

What barriers exist for organizations trying to manage diversity?

2-25

Thomass Generic Action Options

Responses to handling diversity issues: Option 1: Include/Exclude Option 2: Deny Which ones are Option 3: Assimilate most effective for Option 4: Suppress managing diversity? Option 5: Isolate Option 6: Tolerate Option 7: Build Relationships Option 8: Foster Mutual Adaptation
2-26