© 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Diversity: Releasing Every Employee’s Potential Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 2 Learning Objectives 1.Define diversity and review the four layers of diversity. 2.Explain the difference between affirmative action and managing diversity. 3.Explain why Alice Eagly and Linda Arlie believe that a women’s career is best viewed as traveling through a labyrinth. 4.Review the demographic trends pertaining to racial groups, educational mismatches, and an aging workforce. 2-2

Ch. 2 Learning Objectives (con’t) 5.Highlight the managerial implications of increasing diversity in the workforce. 6.Describe the positive and negative effects of diversity by using social categorization theory and information/decision-making theory. 7.Identify the barriers and challenges to managing diversity. 8.Discuss the organizational practices used to effectively manage diversity as identified by R. Roosevelt Thomas, Jr. 2-3

Understanding Diversity Diversity: Host of individual differences that make us similar and different from each other Please stand up….. If the statement made doesn’t pertain to you have a seat! If a statement does describe you, stand up again! 2-4

The Four Layers of Diversity Personality Functional Level/ Classification Geographic Location Age Work Location Seniority Division/ Dept./ Unit/ Group Work Content/ Field Union Affiliation Mgmt. Status Marital Status Parental Status Appearance Educational Background Work Experience Race Income Personal Habits Religion Recreational Habits Ethnicity Physical Ability Sexual Orientation Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p

Test Your Knowledge Sam is a 55 year-old, male Sales Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam? A.Personality B.Internal C.External D.Organizational 2-6

Affirmative Action Goal: Prevent discrimination Never required to hire unqualified people Your Opinion Have affirmative action programs been good for society? A=Yes, B=No Are affirmative action programs still necessary? A=Yes, B=No 2-7

Managing Diversity Enables all people to perform up to their maximum potential. How can managing diversity be a competitive advantage? 2-8

Increased Workforce Diversity - Women Glass Ceiling Invisible barrier blocking women and minorities from top management positions Women CEO’s (as of 2008): 12 of Fortune of Fortune

Navigating a Labyrinth Women have made great strides in organizational power and influence Labyrinth – maze, difficult to find one’s way Women’s careers have similar twists, turns and obstructions 2-10

Increased Workforce Diversity - Race Racial minorities are growing 2007 – 998 race- based charges of discrimination to EEOC 2-11

Education and Personal Income 2-12

Does the US have the skills to compete? World’s population of college students 30% 30 years ago – now 14% American students place in the middle to bottom of the pack in comparison to international counterparts in achievement in Math Science General literacy 2-13

Increased Workforce Diversity - Age 2-14

Generational Differences 2-15

Your Experience For school group projects, it has been easier to work with groups we could choose rather than one’s the professor chose. 1= Strongly Disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly Agree 2-16

Managerial Implications - Gender Provide developmental assignments to women Facilitate the labyrinth-like path to career success Women should: Be exceptionally competent & seek out mentors Build social capital Assist work/life balance by delegating housework Improve negotiating skills Take credit for accomplishments Create a partnership with spouse to be mutually supportive Balance need to be assertive and communal 2-17

Managerial Implications – Race & Education Race Provide meaningful mentoring relationships to people of color Education-based Encourage students to become educated in technical fields Provide remedial skills training 2-18

Managerial Implications – Age Provide challenging work assignments that make a difference to the firm Give the employee considerable autonomy and latitude in completing a task. Provide equal access to training and learning opportunities when it comes to new technology. Provide frequent recognition for skills, experience, and wisdom gained over the years. Provide mentoring opportunities whereby older workers can pass on accumulated knowledge to younger employees. Ensure that older workers receive sensitive, high-quality supervision Design a work environment that is both stimulating and fun. 2-19

Pros and Cons of Diversity Social categorization theory Similarity leads to liking and attraction Information/Decision-Making Theory Diversity leads to better task-relevant processes and decision-making 2-20

A Process Model of Diversity 2-21

Effects of Diverse Work Environments Gender and racial diversity in a work group fosters more interpersonal conflict which leads to lower job satisfaction, higher turnover, and lower productivity 2-22

Effects of Diverse Work Environments Hypothetical dividing lines that may split a group into subgroups based on one or more attributes Demographic faultline members were open-minded, discussed and shared information, and displayed integrative behavior Diverse groups had positive outcomes when…. 2-23

Managing Diversity What can organizations do to facilitate the POSITIVE outcomes of diversity? 2-24

Challenges to Managing Diversity What barriers exist for organizations trying to manage diversity? 2-25

Thomas’s Generic Action Options Responses to handling diversity issues: Option 1: Include/Exclude Option 2: Deny Option 3: Assimilate Option 4: Suppress Option 5: Isolate Option 6: Tolerate Option 7: Build Relationships Option 8: Foster Mutual Adaptation Which ones are most effective for managing diversity? 2-26