1. Women & Men in Management
Chapter 9 – Promoting Nondiscrimination, Diversity, and Inclusion

2. Corporate Action Promoting nondiscrimination Promoting diversity
Legality: complying with federal, state, and local EEO laws
Refraining from discrimination on job-irrelevant qualities (ex. Sexual orientation)
Promoting diversity
Legality: Affirmative action programs
Increase diversity for business reasons
Promoting inclusion
No laws, but may provide advantages

3. Legal Requirements Refraining from discrimination
Title VII, Civil Rights (1964)
Prohibits discrimination on the basis of sex, race, color, religion, national origin, and more recently pregnancy and childbirth in any employment condition
Bans sexual harassment
Two types of discrimination:
Disparate treatment
Disparate impact

4. Legal Requirements Refraining from discrimination
Title VII, Civil Rights (1964)
Exceptions to Title VII
Exception to ban on sex discrimination: discrimination based on seniority system
When sex represents a bona fide occupational qualification

5. Legal Requirements Refraining from discrimination Equal Pay Act (1963)
It is illegal to pay members of one sex a lower rate than the other if they hold jobs that require equal skill, effort, and responsibility under similar working conditions in the same firm
Exceptions to Equal Pay Act
Pay differences are permitted for:
Seniority systems
Merit systems
Systems measuring earnings by quality or quantity of production, or difference in experience

6. Legal Requirements Refraining from discrimination Quotas
Are not required, but may be allowed to remedy a previous imbalance caused by discrimination
How are wages set?
Job evaluation, key jobs, and job clusters
Skill
Effort
Responsibility
Working Conditions

7. The Cost of Discrimination
Direct costs
Fines
Punitive damages
Legal fees
Indirect costs
Damage to company image
Reputation
Lack of employee regard for the firm

8. Taking Affirmative Action
Purpose: overcome the past effects of discrimination
Who must follow affirmative action?
U.S. organizations with 50 or more employees and federal contracts exceeding $50,000 per year
Who administers affirmative action?
The Office of Federal Contract Compliance Programs (OFCCP)

9. Business Imperatives: Why Promote Diversity?
Trends towards increasing diversity:
More diverse labor force in U.S. in multiple dimensions
Educational attainment of females has risen, relative to males
Worldwide shift from manufacturing-based economies to service delivery economies
Increasing globalization of business, multinational business operations, and worldwide marketing

10. The Business Side of Diversity
Firms with about 50% female workforce performed better than those with lower or higher percentages of women.
Profitable firms are successful because they make smarter decisions than competitors:
Embracing diversity may just be one of those smarter decisions that help lead to performance

11. Business Imperatives: Why Promote Inclusion?
Inclusion prevents employees from feeling alienated from those who are different from themselves
Three types of diversity cultures:
Monolithic organizations
Plural organizations
Multicultural organizations

12. Monolithic Organizations
Characteristics
A large majority of employees from one group, especially in managerial ranks
Differences between minority and majority are solved by assimilation
The expectation of minority groups to adopt the norms and values of the majority in order to survive
Low levels of intergroup conflict
Message: “We do not welcome diversity”

13. Plural Organizations Characteristics
Take steps to promote diversity, such as in hiring and promotion and managerial training
Focus on numbers of majority vs. minority instead of the quality of work relationships
Resolve differences through assimilation
Intergroup conflict is high if the majority group disagrees with organizational changes to promote diversity
Message: “We promote diversity, but we expect employees to fit in with the majority group”

14. Multicultural Organizations
Characteristics
Promote diversity and a culture of inclusion
Respond to differences by encouraging members to respect the norms and values of other groups
Increased use of diverse work teams
Intergroup conflict is low
Message: “We welcome members of all groups as full participants in our culture, and we strive to take full advantage of what they have to offer”

15. The Benefits of Inclusion
Inclusive cultures
Are more attractive to prospective employees
Are likely to contribute to full utilization and retention of valued employees
Can enhance the organization’s bottom line
Create a competitive advantage against firms who are weaker in promotion of inclusion

16. Organizational Action for Diversity
Recommended Actions for Organizations and Their Employees
1. Set and communicate the organizational goals of promoting nondiscrimination, diversity, and inclusion
2. Comply with all EEO laws
3. Encourage employees to be champions of diversity, to take strong stands on diversity issues in the workplace and behave as role models for others
4. Assign responsibility for achieving organizational goals to a highly placed executive
5. Make sure that employees understand how affirmative action works in the organization

17. Organizational Action for Diversity
Recommended Actions for Organizations and Their Employees (cont’d)
6. Work with employee network groups formed out of employees’ common interests in planning and implementing cultural change
7. Provide diversity training that educates employees about organizational goals and gives them the knowledge and skills needed to work toward these goals
8. Analyze the organization’s composition and culture to determine what specific improvements are needed, and then set objectives for attaining them
9. Ensure that the achievement of organizational goals and objectives is rewarded by the management system and supported by the organizational culture
10. Continually monitor the organization’s progress relative to its goals and take appropriate actions to ensure that improvements are permanent

18. Educational Initiatives for Employees
Education and training programs should meet a range of objectives and increase participants’:
Knowledge about diversity issues
Familiarity with organizational policies regarding inappropriate workplace behavior
Awareness of their own stereotypes and prejudices
Skills in moving beyond these stereotypes and prejudices
Fluency of other languages and knowledge of national cultures (in multinational organizations)
Managerial skills in making bias-free decisions and dealing with diversity-related incidents
Efforts to change the organization’s diversity culture

19. Book Wrap Up How does it all relate? Recommended actions Goal
Overall directed towards organizations, but individual decisions and changes are what change the organization itself
Goal
To create a nondiscriminatory, diverse, and inclusive workplace, in which individuals are valued for what they bring to the workplace rather than for their demographic qualities

20. Chapter 9 Terms Promoting nondiscrimination Job evaluation
Affirmative action
Promoting diversity
Monolithic organizations
Promoting inclusion
Title VII of the Civil Rights Act
Plural organizations
Multicultural organizations
Disparate treatment discrimination
Champions of diversity
Disparate impact discrimination
Cultural audit
Bona fide occupational qualification
Equal Pay Act