Managing Diverse Employees In a Multicultural Environment

Overview The workforce and the marketplace are becoming increasingly diverse. Diversity has become both an ethical (right) and a business (smart) imperative. Managers play a central role in effectively managing diversity. Personal perception (your internal “filters”) can warp your decisions, resulting in unfair treatment.

The Increasing Diversity of the Workforce and the Environment Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities

Exercise In constructing your circle of friends, which single one of these characteristics is most important in your decision process? Age Race Gender Religion Sexual orientation Socioeconomic status Five minutes

Workforce Diversity: Age Aging U.S. Population Median age in the United States is about 36 years; by 2030, 20 percent of the population will be over 65 Federal Age Discrimination Laws 1964 Title VII of the Civil Rights Act of 1964 1967 Age Discrimination in Employment Act

Workforce Diversity: Gender Women in the Workplace Women are 46% of the U.S. workforce and 57% of college attendees. Women’s median weekly earnings are about two-thirds of men’s. Women hold only 16% of corporate officer positions. Discrimination? Likely some. But correlation is not necessarily causation.

Glass Ceiling Glass Ceiling: Alludes to the invisible barriers that prevent women and minorities from reaching top corporate positions.

Workforce Diversity: Capabilities and Disabilities Disability Issues Provide reasonable accommodations for individuals with disabilities Promote a nondiscriminatory workplace environment Educate the organization about disabilities and AIDS

Workforce Diversity: Religion 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

Workforce Diversity: Socioeconomic Background Socioeconomic Background Issues Widening diversity in income levels Single mothers and the “working poor” Child and elder care for working parents Managers should be “aware” and “care” about the needs and concerns of their employees

Workforce Diversity: Sexual Orientation Sexual orientation issues Employment/workplace discrimination Domestic-partner benefits Find out company policies before hiring on. Is the company sensitive to these issues? Do you agree with the company’s policies?

Critical Managerial Roles To successfully manage diversity, you must lead by example in order to define the accepted practice and make it easier for others to follow.

Roles… Minorities may start out at a slight disadvantage due to the ways in which they are perceived by others. Research suggests that slight differences in treatment can accumulate and result in major disparities over time. Examine yourself before making decisions that can affect someone’s career!

The Ethical Imperative to Manage Diversity Effectively Distributive Justice The distribution of raises, promotions, titles, job assignments, office space, and other organizational resources and “perks” should be based on each person’s contributions not characteristics over which they have no control.

The Ethical Imperative to Manage Diversity Effectively Procedural Justice Use fair procedures to determine how to distribute outcomes to organizational members.

Procedural Justice Exists when managers: 1) carefully appraise a subordinate’s performance 2) take into account environmental obstacles to high performance 3) ignore irrelevant personal characteristics

Business Benefits of Diversity A variety of points of view and experience can improve planning, decision-making and creativity A diverse workforce can assure ethnic sensitivity in today’s diverse marketplace Promotion of diversity can increase retention of valued employees Diversity is expected by stakeholders

Perception Perception The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them. Affected by your internal “filters.”

Perception’s Role in Fair Treatment STEREOTYPE Simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people BIAS The systematic tendency to use information about others in ways that result in inaccurate perceptions; a built-in perceptual “warp.”

Bias Similar-to-me effect – we are more likely to positively perceive others if they are similar to us rather than different Social status effect – perceive individuals with high social status more positively than those with low social status Salience effect – react negatively to conspicuously different individuals (judging the book by its cover)

Share Project Implicit experience.

Useful Technique Focus on what you share, not how you differ; what unites you, not what divides you

Perception Overt Discrimination Knowingly and willingly denying diverse individuals access to positive opportunities and outcomes Violates distributive and procedural justice Unethical, short-sighted, unproductive Will get you and the company sued!

How to Manage Diversity Steps in Managing Diversity Effectively Secure conspicuous top-management commitment Increase diversity awareness and coping skills with training Establish and communicate “zero-tolerance” policies Pay close attention to employee evaluation process (“what gets measured gets done”) Look at the numbers! (Before hiring on, find out how the company measures and enforces diversity compliance) Commit, communicate, train, motivate, enforce, monitor

How to Manage Diversity Steps in Managing Diversity Effectively – Educate, Encourage and Reward Empower employees to challenge discriminatory behaviors, actions and remarks. Reward employees for effectively managing diversity. Provide training using a multi-pronged, continuous approach. Encourage mentoring of diverse employees.

Diversity Awareness Programs Provide employees with accurate information about diversity Uncover personal biases and stereotypes Assess personal beliefs, attitudes, and values and learn about other points of view Develop an atmosphere in which people feel free to share their differing perspectives Improve understanding of others and create respect for “difference”

Sexual Harassment Forms of Sexual Harassment Quid pro quo Forcing an employee to perform sexual favors to gain a reward or avoid negative consequences.

Sexual Harassment Forms of Sexual Harassment Hostile work environment Telling lewd jokes, displaying pornography, making sexually oriented remarks about someone’s personal appearance, and other sex-related actions that make the work environment unpleasant. Example: Mitsubishi versus Toyota

Steps to Eradicate Sexual Harassment Develop and clearly communicate a sexual harassment policy endorsed by top management. Use an efficient and fair procedure to investigate sexual harassment complaints

Steps to Eradicate Sexual Harassment When you determine sexual harassment has taken place, take rapid and strong corrective action Provide anti-sexual harassment education and training to all organizational members, including managers and company officers.

Sexual Harassment There should be quiet and confidential ways to report sexual harassment incidents

Prime Rule Management must vigorously enforce zero-tolerance policies against any form of discrimination or harassment by anyone and work to build respect and support for diversity!

Toyota Tip One of the most difficult situations you can face in managing diversity is facing down a subordinate with a victim complex who threatens to use the company’s diversity policies against you and the company

DISCUSSION You are the top American in charge of all staff operations (including Human Resources) for the North American operations of a foreign-owned company. Your foreign boss (the regional President) sexually harasses his female executive assistant (also a foreign national), violating the company’s official “zero-tolerance” policy toward sexual harassment. She comes to you, closes the door, complains, and asks that you do something. What do you do?

Homework #3 In the continuing debate over employment policies and ethics, what is the significance of comparable worth? Could it be a practical way to make men’s and women’s median earnings more equal? Please research the issue, take a “yes” or “no” position, and give me no more than two double-spaced pages of thoughtful and supported conclusions -- which you are prepared to discuss – no later than Thursday, September 15.