2. Equal Employment Opportunity, Workforce Diversity & HRM 4 Matakuliah: J0124 – Manajemen Sumber Daya Manusia Tahun : 2010

3. Learning Outcomes After studying this chapter, the students should be able to : Explain the reasons behind passage of EEO legislation Describe diversity management Bina Nusantara University 3

4. Historical Perspective of EEO Legislation Equal Employment Opportunity (EEO)Equal Employment Opportunity (EEO)  The treatment of individuals in all aspects of employment—hiring, promotion, training, etc.—in a fair and nonbiased manner. Changing National ValuesChanging National Values Economic DisparityEconomic Disparity Early Legal DevelopmentsEarly Legal Developments  Civil Rights Act (1866)  Executive Order 8802  Civil Rights Act (1964) © 2010 South-Western, a part of Cengage Learning. All rights reserved

5. The Legal Environment Concerns Fairness issues Economic disparity Changing material values Interest group agendas Political party mandates Loop-holes in current legislation Fairness issues Economic disparity Changing material values Interest group agendas Political party mandates Loop-holes in current legislation State Court System Federal Court System Passed by congress Passed by state legislature Presidential executive orders Passed by congress Passed by state legislature Presidential executive orders Type name here Type title here Federal agencies State agencies Independent commissions Federal agencies State agencies Independent commissions Rulings Written regulations Complaint investigations Technical assistance Lawsuits Rulings Written regulations Complaint investigations Technical assistance Lawsuits Planning compliance strategies Formulating appropriate HR policies Briefing and training employees and managers Defending lawsuits Working with government agencies lobbying for policy changes Planning compliance strategies Formulating appropriate HR policies Briefing and training employees and managers Defending lawsuits Working with government agencies lobbying for policy changes Opinions and Decisions Laws Agencies Management Responses Regulatory Action Regulatory Action Challenges to Laws © 2010 South-Western, a part of Cengage Learning. All rights reserved

6. Government Regulation of EEO Protected ClassesProtected Classes  Individuals of a minority race, women, older people, and those with disabilities who are covered by federal laws on equal employment opportunity © 2010 South-Western, a part of Cengage Learning. All rights reserved

7. Section 703(a) of Title VII of the Civil Rights Act It shall be unlawful employment practice for an employer:It shall be unlawful employment practice for an employer: To fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his [or her] compensation, terms, conditions, or privileges of employment because of such individual’s race, color, religion, sex, or national origin.... © 2010 South-Western, a part of Cengage Learning. All rights reserved

8. Religious Preference Title VII of the Civil Rights ActTitle VII of the Civil Rights Act  Prohibits discrimination based on religion in employment decisions, though it permits employer exemptions.  Defines religion to “include all aspects of religious observance and practice, as well as belief.”  Does not require employers to grant complete religious freedom in employment situations.  Requires that employers make a reasonable accommodation (at minimum cost) without incurring undue hardship in the conduct of the business. © 2010 South-Western, a part of Cengage Learning. All rights reserved

9. Age Discrimination Actions Excluding older workers from important work activities.Excluding older workers from important work activities. Making negative changes in the performance evaluations of older employees.Making negative changes in the performance evaluations of older employees. Denying older employees job-related education, career development, or promotional opportunities.Denying older employees job-related education, career development, or promotional opportunities. Selecting younger job applicants over older, better-qualified candidates.Selecting younger job applicants over older, better-qualified candidates. Pressuring older employees into taking early retirement.Pressuring older employees into taking early retirement. Reducing the job duties and responsibilities of older employees.Reducing the job duties and responsibilities of older employees. Terminating older employees through downsizing.Terminating older employees through downsizing. © 2010 South-Western, a part of Cengage Learning. All rights reserved

10. What Is a “Disability”? The Americans With Disabilities Act (ADA) defines a disability as:The Americans With Disabilities Act (ADA) defines a disability as:  A physical or mental impairment that substantially limits one or more of the major life activities.  A record of such impairment.  Being regarded as having such an impairment. © 2010 South-Western, a part of Cengage Learning. All rights reserved

11. What Is a “Disability”? (cont’d) The ADA does not cover:The ADA does not cover: 1. Homosexuality or bisexuality 2. Gender-identity disorders not resulting from physical impairment or other sexual-behavior disorders 3. Compulsive gambling, kleptomania, or pyromania 4. Psychoactive substance-use disorders resulting from current illegal use of drugs 5. Current illegal use of drugs 6. Infectious or communicable diseases of public health significance (applied to food-handling jobs only and excluding AIDS) © 2010 South-Western, a part of Cengage Learning. All rights reserved

12. Sexual Harassment Sexual Harassment (under Title VII)Sexual Harassment (under Title VII)  Unwelcome advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in the working environment  An employer is considered guilty of sexual harassment when:  The employer knew or should have known about the unlawful conduct and failed to remedy it or to take corrective action.  The employer allows nonemployees (customers or salespeople) to sexually harass employees. © 2010 South-Western, a part of Cengage Learning. All rights reserved

13. Hostile Environment Quid Pro Quo Types of Sexual Harassment Submission Rejection Uncomfortable Subjective Response © 2010 South-Western, a part of Cengage Learning. All rights reserved

14. Sexual Harassment Quid Pro Quo HarassmentQuid Pro Quo Harassment  Occurs when “submission to or rejection of sexual conduct is used as a basis for employment decisions.”  Involves a tangible or economic consequence, such as a demotion or loss of pay.  Oncale v Sundowner Offshore Services (1998)  Same-sex sexual harassment (male-to-male, female-to- female) is covered under Title VII. © 2010 South-Western, a part of Cengage Learning. All rights reserved

15. Sexual Harassment (cont’d) Hostile EnvironmentHostile Environment  Occurs when unwelcome sexual conduct “has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.”  Dirty jokes, vulgar slang, nude pictures, swearing, and personal ridicule and insult constitute sexual harassment when an employee finds them offensive.  Courts use a “reasonable person” test for hostile environment. © 2010 South-Western, a part of Cengage Learning. All rights reserved

16. Forms of Discrimination Adverse ImpactAdverse Impact  The rejection of a significantly higher percentage of a protected class for employment, placement, or promotion when compared with a nonprotected class.  Possibly the unintentional result of an innocent act, yet the outcome is still discriminatory. Restricted Policy (Disparate Treatment)Restricted Policy (Disparate Treatment)  An employer’s intentional unequal treatment or evaluation by different standards of protected-class members. © 2010 South-Western, a part of Cengage Learning. All rights reserved

17. Workforce Utilization Analysis Workforce Utilization AnalysisWorkforce Utilization Analysis  The process of comparing the composition by race and sex for jobs within an organization against composition of the employer’s relevant labor market.  The workforce is at parity when its composition matches the relevant labor market.  If the workforce composition is below external figures, the affected protected classes are underutilized and the employer should take affirmative steps to correct the imbalance. © 2010 South-Western, a part of Cengage Learning. All rights reserved

18. How to Achieve Fairness in EEO 1.Correct stereotyped thinking. 2.Eliminate irrelevant job requirements. 3.Open job and promotion opportunities to all protected classes. 4.Promote on the basis of merit rather than seniority. 5.Provide equal pay for equal work. 6.Modify employee benefits to needs of women, minorities, and working families. 7.Management training in EEO requirements. © 2010 South-Western, a part of Cengage Learning. All rights reserved

19. Preventing Discrimination Charges A comprehensive EEO training program for managers and supervisors will include:A comprehensive EEO training program for managers and supervisors will include:  The prohibitions covered in the various EEO statutes  Guidance on how to respond to complaints of discrimination  Procedures for investigating complaints  Suggestions for remedying inappropriate behavior © 2010 South-Western, a part of Cengage Learning. All rights reserved

20. Diversity Management: Affirmative Action Issues Affirmative ActionAffirmative Action  Policy that goes beyond equal employment opportunity by requiring organizations to comply with the law and correct past discriminatory practices by increasing the numbers of minorities and women in specific positions Reverse DiscriminationReverse Discrimination  The act of giving preference to members of protected classes to the extent that unprotected individuals believe they are suffering discrimination © 2010 South-Western, a part of Cengage Learning. All rights reserved

21. Managing Diversity: Affirmative Action Challenges to Affirmative Action (AA):Challenges to Affirmative Action (AA):  AA has not improved protected groups employment.  Individuals hired under AA feel prejudged as inferior performers, and are often viewed as “tokens.”  AA programs have failed in assimilating protected classes into the workforce.  Preferences shown toward one protected class may create conflicts between other minority groups. © 2010 South-Western, a part of Cengage Learning. All rights reserved

22. Employers can determine adverse impact by using the method outlined in the interpretive manual for the Uniform Guidelines on Employee Selection Procedures. A.Calculate the rate of selection for each group (divide the number of people selected from a group by the number of total applicants from that group). B.Observe which group has the highest selection. C.Calculate the impact ratios by comparing the selection rate for each group with that of the highest group (divide the selection rate for a group by the selection rate for the highest group). D.Observe whether the selection rate for any group is substantially less (usually less than four-fifths, or 80 percent) than the selection rate for the highest group. If it is, adverse impact is indicated in most circumstances. © 2010 South-Western, a part of Cengage Learning. All rights reserved