1. Chapter 5 Managing Diverse Employees In a Multicultural Environment

2. MGMT 321 - Chapter 5 Sources of Diversity

3. MGMT 321 - Chapter 5 Diversity Concerns Ethical imperative for equal opportunity Effectively managing diversity can improve organizational effectiveness There is substantial evidence that diverse individuals continue to experience unfair treatment Glass ceiling

4. MGMT 321 - Chapter 5 Major EEO Laws Insert Table 5.1

5. MGMT 321 - Chapter 5 Age and Women Aging U.S. Population –Median age in the United States is 36.2 years –By 2030 20 % of the population will be over 65 Women in the Workplace –U.S. workforce is 46% percent female –Women’s median weekly earnings are $572 compared to $714 for men –Women hold 16% of corporate officer positions

6. MGMT 321 - Chapter 5 Race and Ethnicity Census Bureau distinguishes between the following races –American Indian, Asian, African-American, Native Hawaiian and White Ethnicity refers to whether a person is Hispanic or not Hispanic Most Hispanics prefer to be identified by their country of origin The racial and ethnic diversity of the U.S. population is increasing exponentially

7. MGMT 321 - Chapter 5 Capabilities and Disabilities Providing reasonable accommodations for individuals with disabilities Promoting a nondiscriminatory workplace environment Educating the organization about disabilities and AIDS

8. MGMT 321 - Chapter 5 Other Forms of Diversity 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 Socioeconomic background –Being sensitive and responsive to those who might not be as well off as others Sexual Orientation

9. MGMT 321 - Chapter 5 Critical Managerial Roles When managers commit to diversity, it legitimizes diversity efforts of others Top-management commitment and rewards are critical for success Effective management of diversity hinges on: –Minorities start out at a slight disadvantage due to the perception of others in the organization –Slight differences in treatment can accumulate and result in major disparities over time

10. MGMT 321 - Chapter 5 Justice Distributive Justice –The distribution of organizational resources based on meaningful contribution Procedural Justice –The use of fair procedures to determine how to distribute organizational resources –Exists when managers: Carefully appraise a subordinate’s performance Take into account any environmental obstacles Ignore irrelevant personal characteristics

11. MGMT 321 - Chapter 5 What Diversity Provides A variety of points of view and approaches to problems and opportunities A wider range of creative ideas More attention to the needs of diverse customers Increased retention of valued organizational members Expected/required by other firms

12. MGMT 321 - Chapter 5 Perception The process through which people select, organize, and interpret what they experience Inaccurate perceptions are likely to lead to bad decisions and inappropriate actions Bad managerial decisions include: –Not hiring qualified people –Failing to promote top-performing subordinates –Promoting poorly performing managers because they have the same “diversity profile”

13. MGMT 321 - Chapter 5 Perception Schema –Abstract knowledge structure that allows people to organize and interpret information Stereotype –Simplistic beliefs about the typical characteristics of particular groups of people Bias –Systematic tendency of using information in ways that result in inaccurate perceptions

14. MGMT 321 - Chapter 5 Biases Similar-to-me effect –Perceive others who are similar to ourselves more positively than we perceive people who are different Social status effect –Perceive individuals with high social status more positively than those with low social status Salience effect –Focus attention on individuals who are conspicuously different

15. MGMT 321 - Chapter 5 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

16. MGMT 321 - Chapter 5 Managing Diversity Secure top management commitment Strive to increase the accuracy of perceptions Increase diversity awareness and skills Pay close attention to evaluations Consider the numbers Reward employees Provide training Encourage mentoring

17. MGMT 321 - Chapter 5 Diversity Awareness Programs Provide members with accurate information about diversity Uncover personal biases and stereotypes Assess personal beliefs, attitudes, and values and learning about other points of view Develop an atmosphere in which people feel free to share their differing perspectives Improve understanding of others who are different

18. MGMT 321 - Chapter 5 Sexual Harassment Types of Sexual Harassment –Quid pro quo –Hostile work environment Eliminating Sexual Harassment –Develop and clearly communicate a policy –Use a fair complaint procedure –Take corrective action as soon as possible –Provide sexual harassment education and training

19. MGMT 321 - Chapter 5 Sexual Harassment Every charge should be taken seriously Those who go along with it can be victims Employees sometimes wait before filing a complaints Alternate ways to report incidents should be provided Employees who report sexual harassment must have their rights protected Allegations should be kept confidential

20. MGMT 321 - Chapter 5 Sexual Harassment Investigations of charges and disciplinary action should proceed in a timely manner Managers must protect employees from third- party employees as well Sexual Harassment Policy –Should be communicated to each new employee and reviewed with current employees –Suppliers and customers need to be familiar with the policy