Managing Employee Diversity Chapter 11 Managing Employee Diversity

Learning Objectives After reading this chapter, you should be able to: Explain the meaning and benefits of employee diversity. Develop an awareness of the unique perspectives, problems, and issues of diverse employee groups. Understand demographic trends in the labor force and their managerial implications. Describe the challenges firms may face in the management of diversity. Describe various approaches that managers may use to enjoy the benefits of employee diversity and meet the challenges associated with diversity.

If effectively managed, diversity can provide: A powerful competitive edge The ability to foster creativity Improve problem solving Provide greater flexibility Make the firm more attractive to a broad labor market

Diversity It describes a wide spectrum differences between people. Groups of individuals share characteristics that distinguish them from other groups. The differences between groups are smaller than the differences within groups. Classifying people into group types often leads to false stereotypes because it incorrectly assumes that group averages apply to all individuals in the group.

Advantages of Employee Diversity Improved International Competition Better Market Access Better Team Performance Multiplicity of Points of View 3

The Challenges of Diversity Pressures Toward Homogenization Lower Cohesiveness Confusing Diversity With Affirmative Action Interpersonal Conflict and Tension 3

The U.S. workforce is a mosaic of diverse cultures and groups African Americans Older Workers Asian Americans Women Disabled Americans Homosexuals Hispanic Americans Foreign-Born Americans

Diversity Today African Americans 11.3 percent of U.S. population 11.8 percent of workforce Asian Americans 3.6 percent of population Wide variety of races ethnic groups and nationalities including Japanese, Chinese, Korean, Indian and Pakistani. Disabled Americans 50 million Americans suffer from some form of disability Between ages 16-64 55.8% are employed Accommodating disabled employees is less expensive than people think

Diversity Today (Cont) Foreign-born Americans About 10 percent of U.S. population About 820,000 immigrants enter the U.S. legally every year At least 11 million undocumented immigrants Hispanic Americans About 28 million people (10 percent of U.S. population) Actual number is around 40 million people People with roots in Mexico, Puerto Rico, and Cuba Homosexuals Estimated to be between 1 to 10 percent of the population No federal laws to protect homosexuals

Diversity Today (Cont) Older Workers The average age of the U.S. workforce is expected to reach 42 by 2010. Negative stereotypes: inflexible, resisting to learning new skills, and coasting until retirement Religious Diversity Primarily Christian faith A growing non-Christian minority Women Half of the labor force is female Glass ceiling and sexual harassment issues at work

Building on Diversity Top management commitment Linking diversity initiatives to business strategies and objectives Management responsibility and accountability Diversity audits Developmental activities Encouraging diversity networks Accommodating family needs

Top Management Commitment Question to improve diversity: How can we develop all employees so that they are ready for opportunities that arise in the company? How can we be sure that minorities and women gain access to better jobs, as they become available? How can we make sure that we give minorities and women opportunities without discriminating against white men? How can we show all employees that we value their contributions? How can we change attitudes of both employees and customers? Will the same approach work for new employees and those with many years of service?

Linking Diversity to Strategies and Objectives It should be key components of corporate mission statements Inclusion in corporate handbooks Examples: Diversity briefing for senior management Networking groups Linking diversity performance to other corporate objectives Benchmarking with other companies

Management Responsibility and Accountability “Diversity is not likely to become part of management and employee priorities without real accountability for specific objectives.” 360-degree feedback – multirater feedback from peers, suppliers, other levels of management, and internal and external customers Employee surveys Performance appraisals Self-evaluation

Diversity Audits Can help reveal possible sources of bias Indicators or factors used in the audit can also be used to measure whether corrective actions have the desired effects

Issues to Consider in Diversity Training Diversity is about each person coming to terms with attitudes, beliefs, and expectations It is big enough to include everyone No is the target to blame Human beings are ethnocentric The human species resists change Human beings find comfort and trust in likeness It is difficult for people to share power

Developmental Activities Diversity Training Senior Mentoring Diversity Learning Labs Apprenticeships 3

Encouraging diversity networks Offers a nurturing environment to people Company leaders may encourage employees to become part of international teams

Accommodating Family Needs Day-care assistance Flexible work schedules and arrangements Compressed work weeks Job sharing Telecommuting Care assistance for elderly dependents

Accommodating Family Needs (Continued) Paid time off to care for family members who are ill Paid parental leave Keeping relocations to a minimum Giving a high priority to finding a position for spouse within the firm Job search assistance to relocated spouses