Chapter - 2 Diversity in Organizations

1
Diversity in Organizations
BUS 107
Dr. Raj K. Singh
Agenda
2
Explain the pervasive demographic changes

occurring in the domestic and global marketplace and
how corporations are responding.
Explain how the definition of diversity has grown to

recognize a broad spectrum of differences among
employees, and appreciate the dividends of a diverse
workforce.
Explain the complex attitudes, opinions, and

issues that employees bring to the workplace,
including prejudice, discrimination, stereotypes, and
ethnocentrism.
Agenda (Continued)
3
Explain the factors that affect womens

opportunities, including the glass ceiling, the
opt-out trend, and the female advantage.
Explain the five steps in developing cultural

competence in the workplace.
Describe how diversity initiatives and training

programs help create a climate that values
diversity.
Explain how multicultural teams and employee

network groups help organizations respond to
the rapidly changing and complex workplace.
Do You Know Your Biases?

4
As a manager, your day-to-day behavior will send

signals about your biases and values.
What is Diversity?
5
Diversity represents all the ways we are

different
Laws provide the first basis for diversity: equal
employment opportunity
Laws based on historical discrimination against
certain groups in our society: race, sex, color,
religion, national origin, disability, etc.
Why Value Diversity?

6
Future workforce will have huge

demographic variations
Companies report competitive
advantage as the key driver of diversity
efforts
Diverse markets require diverse
operatives; organizations must know the
markets they seek to serve
The Changing Workplace

7
Diversity in the United States
Aging Workforce
Growth in Hispanic and Asian Workers
Minority Purchasing Power
Growth in Foreign-born Population
Global Diversity
The aging population is a global phenomenon
Social and cultural differences are creating challenges
The meaning of diversity differs around the world
Global businesses have global customers, employees,

suppliers, and stockholders
Biographical
Characteristics
and How They Are Relevant
Age
The U.S. workforce is aging.
to
OB
Does
job performance decline with

increasing age?
Studies show that turnover and
absenteeism rates are lower among older
workers, and age is not associated with
lower productivity.
The Village Earth

9
If we could shrink the earth's population to a village of

precisely 100 people, with all the existing human ratios
remaining the same, it would look something like the
following. There would be:
The Village Earth

10
57 Asians
21 Europeans; 14 from the Western Hemisphere, both
north and south
8 Africans
52 would be female
48 would be male
70 would be non-white
30 would be white
70 would be non-Christian
30 would be Christian
89 would be heterosexual
11 would be homosexual
The Village Earth

11
80 would live in substandard housing

70 would be unable to read
50 would suffer from malnutrition
1 would be near death; 1 would be near birth
1 (yes, only 1) would have a college education
Less than 2 would own a computer
The Challenge of Workplace

Diversity?
12
The challenge lies in the continuous improvement

of the integration and social acceptance of people
from different backgrounds.
Our differing human characteristics influence the
way we think, act, interact, and make choices.
Often, these differences interfere with our ability to
support, trust, and respect each other, and thus to
effectively function together.
13
Leaders in Corporate
Diversity
Growth in Employment from 2006 to

2016 by Group
14
Managing Diversity
15
Diversity is all of the ways in which

people are different
Companies are embracing a more

inclusive definition of diversity
Spectrum of differences: how employees

approach work, interact, approach work,
derive satisfaction and define who they
are
Traditional vs. Inclusive

Models of Diversity
16
Dividends of Workplace Diversity

17
Better use of employee talent
Increased understanding of the marketplace
Increased quality of team problem solving
Reduced costs associated with high turnover,

absenteeism, and lawsuits
Factors Shaping
Personal Bias
18
Stereotypes are often based on folklore, media

portrayals, and other unreliable sources of
information
Stereotypes contain negative connotations
Stereotypes assume that all members of a group

have the same characteristics
19
Federal and State Laws Regarding

Diversity
Title VII of the Civil Rights Act of 1964

The Equal Pay Act of 1963
The American with Disabilities Act
The Age Discrimination in Employment Act
19
20
Factors Affecting Womens

Careers
Glass Ceiling. An invisible barrier that separates

women from top management positions.
Opt-Out Trend. Many women are deciding to

get off the fast track to top management before
hitting the glass ceiling.
The Wage Gap

21
22
Biographical
Characteristics
and How They Are Relevant
Sex
There are no consistent male-female
to
OB
differences in problem solving ability,

analytical skills, competitive drive,
motivation, sociability, or learning drive.
But women earn less than men for the
same positions and have fewer professional
opportunities.
Lilly Ledbetter
Diversity Initiatives and Programs
Changing Structures and Policies
Expanding Recruitment Efforts
Establishing Mentor Relationships
Accommodating Special Needs
Providing Diversity Skills Training
How Organizations
Manage Diversity
Attracting, selecting, developing, and
Effectively
retaining diverse employees
Target recruiting messages to specific

demographic groups.
Ensure that hiring is bias free.
Create a positive diversity climate.
How Organizations
Manage Diversity
Diversity in groups
Effectively
Most people in groups need a common way

of looking at and accomplishing major
tasks, and they need to communicate well
with each other.
Emphasize
higher-level similarities among
people.
Use transformational leadership.
How Organizations
Manage Diversity
Effective diversity programs
Effectively
Teach managers about the legal framework

for equal employment opportunity and
encourage fair treatment of all people.
Teach managers how a diverse workforce
will be more effective at serving a diverse
customer base.
Foster personal development practices that
bring out the skills and abilities of
everyone.
Increasing Awareness of
Sexual Harassment
Sexual harassment creates an

unhealthy and unproductive
work environment
Sexual Harassment is illegal,

violation of Civil Rights Act
150% increase in sexual

harassment filings in US
Companies are creating

awareness programs
28
Why Value Diversity?
The Business Case for Diversity
Improved Organizational Performance

29
Companies rated on Fortunes 50 Best

Companies for Minorities outperformed
the S&P 500 over three- and five-year
periods
Academy of Management Journal:
Organizations with diverse management
teams correlate with superior corporate
performance

30
Reduced Turnover, Improved

Retention
Society for Human Resource

Management (SHRM) study: diversity
initiatives positively affect the bottom
line
Ability to recruit
Ability to retain
Improved client relations
Improved productivity
Improved corporate culture
Increased Innovation
31
Diversity provides a richer variety of

approaches to work and problem solving
Diversity strengthens an organization's
resilience in changing environmental
conditions
Diversity allows challenges to longaccepted views
Increased Effectiveness in Minority Markets

32
Helps organizations understand how to

effectively interact with all of its client
base
Informs organizational practices that
create community support in all
populations
Helps manage perceptions of
historically underserved markets
Positive Impact on Group Performance

33
SHRM and Fortune survey concluded

that diversity:
Improves corporate culture 83%

Improves employee morale 70%
Increases creativity 59%
Decreases interpersonal conflict 58%
Enables movement into emerging
markets 57%
Improves productivity 52%
Class Discussion Question

34
What can we do as managers to show

our employees that diversity is valued?
Please explain with examples.

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1

Explain the pervasive demographic changes

Explain how the definition of diversity has grown to

Explain the complex attitudes, opinions, and

Explain the factors that affect womens

Explain the five steps in developing cultural

Describe how diversity initiatives and training

Explain how multicultural teams and employee

Do You Know Your Biases?

As a manager, your day-to-day behavior will send

Diversity represents all the ways we are

Why Value Diversity?

Future workforce will have huge

The Changing Workplace

Diversity in the United States

Growth in Hispanic and Asian Workers

Minority Purchasing Power

Growth in Foreign-born Population

The aging population is a global phenomenon

Social and cultural differences are creating challenges

The meaning of diversity differs around the world

Global businesses have global customers, employees,

job performance decline with

The Village Earth

If we could shrink the earth's population to a village of

The Village Earth

The Village Earth

80 would live in substandard housing

The Challenge of Workplace

The challenge lies in the continuous improvement

Growth in Employment from 2006 to

Diversity is all of the ways in which

Companies are embracing a more

Spectrum of differences: how employees

Traditional vs. Inclusive

Dividends of Workplace Diversity

Better use of employee talent

Increased understanding of the marketplace

Increased quality of team problem solving

Reduced costs associated with high turnover,

Stereotypes are often based on folklore, media

Stereotypes contain negative connotations

Stereotypes assume that all members of a group

Federal and State Laws Regarding

Title VII of the Civil Rights Act of 1964

Factors Affecting Womens

Glass Ceiling. An invisible barrier that separates

Opt-Out Trend. Many women are deciding to

The Wage Gap

differences in problem solving ability,

Diversity Initiatives and Programs

Changing Structures and Policies

Expanding Recruitment Efforts

Establishing Mentor Relationships

Accommodating Special Needs

Providing Diversity Skills Training

retaining diverse employees

Target recruiting messages to specific