2 Overview How Diverse Are We and Why Is Diversity Important? Types of DiversityLaws and Executive Orders Prohibiting DiscriminationChallenges of DiversityStrategies for Managing DiversityPrograms for Managing Diversity
3 US Workforce is More Diverse than Ever Before More women are working than ever beforeThe workforce will continue to get olderThe number of immigrants has increasedEthnic and racial diversity is increasing
4 Why is Diversity Important? The service economyInteractions between people are keyCustomer base is more diverseSimilarities between people ease processGlobalization of businessDoing business with people from around worldThe changing labor marketCompany mergers and buy-outs
5 Types of Diversity Gender Diversity Age Diversity Cultural Diversity Sexual OrientationFamily SituationsPhysical and Psychological DisabilitiesPolitical ViewsPersonal Idiosyncrasies
6 Proportion of Women in the Workforce 1950-2000 PercentYearSource: U..S. Bureau of Labor Statistics
7 Gender Diversity: Nonstandard work More women in workforce today than everBetter educated than everMost “nonstandard” workers (those who do not hold regular, full-time jobs) are women55% of workers paid by temporary agencies are women70% of part-time workers are womenStereotypes still remainGlass ceiling, etc.
8 Gender Diversity: Wages and Income In 2000, women who worked full-time, year round earned 74.3 cents for each dollar earned by menOver a lifetime of work, the average 25-year-old woman who works full-time, year round until she retires at 65 will earn $523,000 less than the average working man58% of the workers who benefited from the last minimum wage increase were women
9 Age Diversity As population ages, more older workers are available Re-entry of middle-aged women to workRetirees returning to supplement pensionInternships bring in more younger employees
10 Cultural Diversity Affects values, view of the world More than 40% of new entrants into U.S. workforce from non-“majority” groupsAbout 22% new immigrantsAbout 20% African-American or HispanicGrowing international businessEmployees maintain ties to national and cultural heritage
11 Cultural Diversity (Hofstede) Managers and employees vary on 5 dimensions of national culture:Individualism vs. collectivismPower distance: extent to which a society accepts the fact that power in institutions and organizations is distributed unequallyUncertainty Avoidance: The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid themQuantity vs. Quality of Life (also masc/fem)Long term orientation
12 Comparison of US vs. World Average on Hofstede’s Dimensions Power DistanceLong termPower DistanceLong termMasculineMasculineIndividualismUncertainty AvoidanceIndividualismUncertainty Avoidance
13 Sexual Orientation Diversity Approximately 10-14% of the US workforce is lesbian, gay, or bisexual (LGB; Powers, 1996)Disclosure of sexual orientation is a critical and complex decision that is affected by many factors (Ragins et al., 2001)
14 Sexual Orientation Diversity Most discrimination laws (e.g., CRA of 1964) do not protect sexual identityDiscrimination against employees who are or who are perceived to be LGB is legal in most workplaces (Button et al., 1997; van der Meide, 2000)25-66% of LGB employees report discrimination. This number is likely much higher due to low disclosure rates (Badgett, 1996; Driscoll et al., 1996; Schneider, 1987)
15 Other Types of Diversity Family situationsSingle employees (mothers and others)Physical and psychological disabilitiesAmericans with Disabilities ActPolitical viewsPersonal idiosyncrasies
16 The pay gap, median weekly earnings of full-time workers, as a percentage of those of white menSource: U.S. Census Bureau, Statistical Abstract of the United States, 2000, Table 696, p. 437.
17 Where Women and Minorities Manage Percentage of total, 1999Female Black HispanicAll occupations % 11.3% 10.3%Managerial and professionalExecutive, administrative and managerialPublic officials and administratorsFinancial managersPersonnel and labor relations managersPurchasing managersMarketing, advertising, and PREducational administratorsHealth care managersProperty and real estate managersManagement-related occupationsSource: U.S. Census Bureau, Statistical Abstract of the United States, 2000, table 669, pp
18 Federal Laws and Executive Orders Prohibiting Job Discrimination Equal Pay Act (1963)Civil Rights Act (1964; amended 1972, 1991)Executive Order (1965)Age Discrimination in Employment Act (1967)Equal Employment Opportunity Act (1972)Pregnancy Discrimination Act (1972)Americans with Disabilities Act (1978)Family and Medical Leave Act (1993)
19 Challenges of Diversity Availability ChallengeIn past employers could control diversityMore people than jobsQualified employees have become scarceEmployers must become more flexibleRealize “Different does not mean deficient”Fairness challengeIn past, typically viewed as equal treatmentEqual Employment OpportunityNow employers must embrace new diversityEssentially focus on “differences”
20 Challenges of Diversity Synergy challengeMore and more group-based workDiversity can create positive and negative conflictCan facilitate creative problem-solvingCan close down communicationCan derail group processesGroup leaders must minimize destructive conflict and maximize diversity of input
21 Strategies for Managing Diversity Articulate a clear diversity mission, set objectives, and hold managers accountable.Spread a wide net in recruitment to find the most diverse possible pool of qualified candidates.Identify promising women and minorities and provide them with mentors and other kinds of support.Set up diversity councils to monitor the company’s goals and progress toward them.
22 Programs for Managing Diversity: Diversity Training Providing managers with trainingHow to recruit/hire diverse employeesHow to orient/integrate new employeesProviding all employees with trainingRealizing the differences that existLearning how differences affect working environmentHow to maximize productivity without ignoring employee differences