Chapter 4

Managing Diverse
Employees in a Diverse
Environment
 Learning
Learning Objectives
Objectives
• After studying the chapter, you should be able to:
Appreciate the increasing diversity of the workforce
and of the organization environment.
Grasp the central role that managers play in the
effective management of diversity.
Understand why the effective management of
diversity is both an ethical and a business
imperative.
Appreciate how perception and the use of schemas
can result in unfair treatment.
 Learning
Learning Objectives
Objectives (cont’d)
(cont’d)
Appreciate the steps managers can take to
effectively manage diversity
Understand the two major forms of sexual
harassment and how they can be eliminated.
 Chapter
Chapter Outline
Outline
• The Increasing Diversity of the Workforce and
the Environment
Age
Gender
Race and Ethnicity
Religion
Capabilities/Disabilities
Socioeconomic Background
Sexual Orientation
 Chapter
Chapter Outline
Outline (cont’d)
(cont’d)
• Management of Diversity
Critical Managerial Roles
The Ethical Imperative to Manage Diversity
Effectively
Effectively Managing Diversity Makes Good
Business Sense
• Perception
Factors that Influence Managerial Perception
Perception as a Determinant of Unfair Treatment
Overt Discrimination
 Chapter
Chapter Outline
Outline (cont’d)
(cont’d)
• How to Manager Diversity Effectively
Steps in Managing Diversity Effectively
• Sexual Harassment
Forms of Sexual Harassment
Steps Managers Can Take to Eradicate Sexual
Harassment
• Summary and Review
 The
The Increasing
Increasing Diversity
Diversity of
of the
the
Workforce
Workforce and
and the
the Environment
Environment
• Diversity
Differences among people in age, gender, race,
ethnicity, religion, sexual orientation, socioeconomic
background, and capabilities/disabilities
• Diversity Concerns and Issues
The ethical imperative for equal opportunity
The illegality of unfair treatment
Diversity’s positive effect on organizational
performance
The continuing bias toward diverse individuals
 Sources
Sources of
of Diversity
Diversity in
in the
the Workplace
Workplace

Source: Figure 4.1

 Workforce
Workforce Diversity
Diversity
• Glass Ceiling
A metaphor alluding to the invisible barriers that
prevents minorities and women from being
promoted to top corporate positions.

2008: Projected New Entrants

in the U.S. Labor Force

Source: Bureau of Labor Statistics, Projections

from Current Population Survey, 1988–1998.
Figure 4.2
 Workforce
Workforce Diversity:
Diversity: Age
Age
• Aging U.S. Population
Median age in the United States is 35.3 years, up 2.5
years from 1990; 45-54 age cohort contains 37.7
million persons
• Federal Age Discrimination Laws
1964 Title VII of the Civil Rights Act of 1964
1967 Age Discrimination in Employment Act
1978 Pregnancy Discrimination Act
1990 Americans with Disabilities Act
1991 Civil Rights Act
1993 Family and Medical Leave Act
 Workforce
Workforce Diversity:
Diversity: Gender
Gender
• Women in the Work Place
U.S. workforce is 46% percent female
Women’s median earnings are less than two-thirds
of the median earnings of men.
Women hold only 12% of corporate officer
positions
 Workforce
Workforce Diversity:
Diversity: Race
Race and
and Ethnicity
Ethnicity
• 1998 to 2008 Growth Rates for the U.S.
Working Population
3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

.5%

.0%

White Black Hispanic

 Workforce
Workforce Diversity:
Diversity: Religion
Religion
• Accommodation for Religious Beliefs
Scheduling of critical meetings
Providing flexible time off for holy days
Posting holy days for different religions on the
company calendar
 Workforce
Workforce Diversity:
Diversity: Capabilities
Capabilities and
and
Disabilities
Disabilities
• Disability Issues
Providing reasonable accommodations for
individuals with disabilities
Promoting a nondiscriminatory workplace
environment
Educating the organization
about disabilities and AIDS
 Workforce
Workforce Diversity:
Diversity: Socioeconomic
Socioeconomic
Background
Background
• Socioeconomic Background Issues
Widening diversity in income levels
Single mothers and the “working poor”
Child and elder care for working parents
 Workforce
Workforce Diversity:
Diversity: Sexual
Sexual Orientation
Orientation
• Sexual Orientation Issues
Employment and workplace discrimination
Provision of domestic-partner benefits
 Managers
Managers and
and the
the Effective
Effective Management
Management
of
of Diversity
Diversity
• Critical Managerial Roles
Interpersonal
• Figurehead • Leader • Liaison
Informational
• Monitor • Disseminator • Spokesperson
Decisional
• Entrepreneur • Disturbance Handler
• Resource Allocator • Negotiator
 The
The Ethical
Ethical Imperative
Imperative to
to Manager
Manager
Diversity
Diversity Effectively
Effectively
• Distributive Justice
A moral principle calling for the distribution of pay,
raises, promotions, and other organizational
resources to be based on meaningful contribution
that individuals have made and not personal
characteristics over which they have no control.
 Women-of-color
Women-of-color Managers
Managers Cite
Cite Barriers
Barriers to
to
Their
Their Advancement
Advancement

Source: 1999 Census of Women Corporate Officers and Top Earners and 1999 Census of
Women Board of Directors of Fortune 1000, and Catalyst Women of Color in Corporate
Management: Opportunities and Barriers, 1999, www.catalystwomen.org, October 21, 2001.
Figure 4.3
 The
The Ethical
Ethical Imperative
Imperative toto Manager
Manager
Diversity
Diversity Effectively
Effectively (cont’d)
(cont’d)
• Procedural Justice
A moral principle calling for the use of fair
procedures to determine how to distribute
outcomes to organizational members.
 Managing
Managing Diversity
Diversity Effectively
Effectively Makes
Makes
Good
Good Business
Business Sense
Sense
• What a Diversity of Employees Provides
A variety of points of view and approaches to
problems and opportunities can improve managerial
decision making.
Diverse employees can provide a wider range of
creative ideas.
Diverse employees are more attuned to the needs of
diverse customers.
Diversity can increase the retention of valued
organizational members.
Diversity is expected/required by other firms
 Perception
Perception
• Perception
The process through which people select, organize,
and interpret what they see, hear, touch, smell,
and taste to give meaning and order to the world
around them.
 Perception
Perception
• Factors that Influence Managerial Perception
Schema
• An abstract knowledge structure that is stored in
memory and makes possible the interpretation and
organization of information about a person, event, or
situation
Gender Schema
• Preconceived beliefs or ideas about the nature of
men and women, their traits, attitudes, behaviors, and
preferences
 Perception
Perception (cont’d)
(cont’d)
• Perception as a Determinant of Unfair
Treatment
Stereotype
• Simplistic and often inaccurate beliefs about the
typical characteristics of particular groups of people
Bias
• The systematic tendency to use information about
others in ways that result in inaccurate perceptions
• Types of biases: similar-to-me, social status, salience
 Perception
Perception (cont’d)
(cont’d)
• Overt Discrimination
Knowingly and willingly denying diverse individuals
access to opportunities and outcomes in an
organization
Unethical and illegal
Violation of the principles of distributive and
procedural justice
Subjects firm to lawsuits
 How
How to
to Manage
Manage Diversity
Diversity
• Steps in Managing Diversity Effectively
Secure top management commitment
Strive to increase the accuracy of perceptions
Increase diversity awareness
Increase diversity skills
Encourage flexibility
Pay close attention to how organizational members
are evaluated
Consider the numbers
 How
How to
to Manage
Manage Diversity
Diversity (cont’d)
(cont’d)
• Steps in Managing Diversity Effectively (cont’d)
Empower employees to challenge discriminatory
behaviors, actions, and remarks
Reward employees for effectively managing
diversity
Provide training utilizing a multipronged, ongoing
approach
Encourage mentoring of diverse employees
 How
How to
to Manage
Manage Diversity
Diversity (cont’d)
(cont’d)
• Mentoring
A process by which an experienced member of an
organization (the mentor) provides advice and
guidance to an less experienced member (the
protégé) and helps the less experienced member
learn how to advance in the organization and in his
or her career.
 Sexual
Sexual Harassment
Harassment
• Forms of Sexual Harassment
Quid pro quo
• Asking of forcing an employee to perform sexual
favors in exchange for some reward or to avoid
negative consequences.
Hostile work environment
• Telling lewd jokes, displaying pornography, making
sexually oriented remarks about someone’s personal
appearance, and other sex-related actions that make
the work environment unpleasant.
 Avoiding
Avoiding Harassment
Harassment
• Develop a zero-tolerance policy on
harassment
• Communicate the policy to all; pointing out
that these actions are unacceptable.
• Implement a complaint system to investigate
allegations—if there are problems, correct
them at once (reasonable).
• Provide harassment training to employees and
managers.