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.

Examples of Diversity  All stand  Born and raised in the US, please sit.  Parents born and raised in the US, please sit.  At least one set of grand parents born and raised in the US, please sit.  We are a nation of immigrants!

Another example of diversity  Raise your hand if you are descended from someone who came to the US from  Southern Europe - Italy, Spain  Northern Europe – Germany, Scandinavia, UK  Eastern Europe including Russia  South Asia  East Asia  Africa

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

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

Pressures for Homogenization  Natural tendency for groups or organizations to become demographically homogenous  Ethnocentrism – “the sun always shine on the (British) empire”  Glass ceilings affect women and minorities  Segmented communication – communication flows far greater within than between groups

Confusing diversity with affirmative action  Affirmative action is a government mandate  Diversity is fact of work life. Note... Management Is Everyone’s Business 11.3 Management Close-up 11.1 on the Hispanic market Issues to Consider in Diversity Training Figure 11.6

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

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 % are employed  Accommodating disabled employees is less expensive than people think

 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  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 Diversity Today (Cont)

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 Apprenticeships Diversity Learning Labs

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

 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 Accommodating Family Needs (Continued)

Individual/Collaborative Learning Case P. 461  Write down your thoughts individually on the challenge posed by the Exercise. Label these as INITIAL THOUGHTS.  Verbally present your thoughts to your group and discuss.  Individually, write down your ADDITIONAL INSIGHTS.

Blackgold Case A