Managing the Diverse Workforce Chapter Eleven Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives LO 1 Describe how changes in the U.S. workforce make diversity a critical organizational and managerial issue LO 2 Distinguish between affirmative action and managing diversity LO 3 Explain how diversity, if well managed, can give organizations a competitive edge LO 4 Identify challenges associated with managing a diverse workforce LO 5 Define monolithic, pluralistic, and multicultural organizations LO 6 List steps managers and their organizations can take to cultivate diversity 11-2

Managing Diversity  Managing diversity  Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage. 11-3

Diversity: A Brief History  Most immigrants to the U.S. from late 1800s to early 1900s were non-English speaking from Italy, Poland, Ireland, and Russia  It was considered poor business practice for white Protestant-dominated insurance companies to hire Irish, Italians, Catholics, or Jews  It was not until the 1960s that the struggle for acceptance by various ethnic and religious groups had on the whole succeeded 11-4

Diversity: A Brief History  When the Women’s Rights Movement was launched in Seneca Falls in 1848, most occupations, colleges, and professional schools were off limits to women  Women could not vote and lost all property rights once they were married  Until the Civil Rights Act of 1964, women:  Were excluded from certain jobs  Needed a male cosigner for a bank loan  Were not issued credit cards if they were married 11-5

Diversity: A Brief History  The most difficult struggle faced America’s nonwhite minorities  Racial segregation remained for 100 years after the end of the Civil War  Blacks suffered voting right suppression and discrimination in education, employment, and housing  Brown v. Board of Education (1954) declared segregation unconstitutional setting the stage for the Civil Rights Act of

Components of a Diversified Workforce 11-7 Figure 11.1

Diversity Today  Diversity  Differences that include religious affiliation, age, disability status, military experience, sexual orientation, economic class, educational level, lifestyle, gender, race, ethnicity, and nationality 11-8

Diversity Today  Managing diversity means not just tolerating or accommodating all sorts of differences, but supporting, nurturing, and utilizing these differences to the organization’s advantage 11-9

Examples of Diversity Programs in S&P 100 Companies Figure 11.2

Gender Issues  Women make up about 47 percent of the workforce.  The overall labor force participation rate of women rose throughout the 1970s  Almost 60 percent of marriages are dual-earner marriages.  One of every four married women in two-income households earns more than her husband does 11-11

Question A(n) ___________ is an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy. A. Organization chart B. Glass ceiling C. Glass limit D. Personnel limit 11-12

Gender Issues  Glass ceiling  an invisible barrier that makes it difficult for women and minorities to move beyond a certain level in the corporate hierarchy 11-13

The A-List: Top Women Executives Table 11.1

Gender Issues  Sexual harassment  Conduct of a sexual nature that has negative consequences for employment 11-15

Sexual Harassment  Quid pro quo harassment  Submission to or rejection of sexual conduct is used as a basis for employment decisions  Hostile environment  Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment 11-16

Top 10 Companies for Executive Women Table 11.2

Basic Components of an Effective Sexual Harassment Policy Table 11.3

Minorities and Immigrants  Black, Asian, and Hispanic workers are about one- fifth of the labor force in the United States.  Asian and Hispanic workforces are growing the fastest in the United States, followed by the African American workforce.  By 2020, more than 18 percent of the workforce is expected to be people of Hispanic origin.  In 2012, the census bureau estimated that a majority of children under age 1 in the United States were members of racial or ethnic minority groups 11-19

Minorities and Immigrants  Four states (California, Hawaii, New Mexico, and Texas) and the District of Columbia have become majority minority, meaning a majority of the population consists of members of racial and ethnic minorities.  Foreign-born workers make up more than 16 percent of the U.S. civilian labor force.  Close to half of these workers are Hispanic, and nearly one-fourth are Asian 11-20

Executives of Color: Selected Examples Table 11.4

Mentally and Physically Disabled People  The largest unemployed minority in the U.S.  The share of the population with a disability is growing  Assistive technologies make it easier for companies to comply with the Americans with Disabilities Act 11-22

The Age of the Workforce  The median age of workers is rising substantially while the number of young workers is growing only slightly  The Bureau of Labor Statistics projects that entry-level workers will be in short supply in the future  70% of workers between intend to work in retirement  To prevent an exodus of talent, employers need strategies to help retain and attract skilled older workers  Employers must also compete for talented young workers 11-23

Utilizing Older Employees Table 11.6

Managing Diversity versus Affirmative Action  Affirmative action  Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past

Competitive Advantage through Diversity and Inclusion Ability to Attract and Retain Motivated Employees Better Perspective on a Differentiated Market Ability to Leverage Creativity and Innovation in Problem Solving Enhancement of Organizational Flexibility

Challenges of Diversity and Inclusion Unexamined Assumptions Lower Cohesiveness Communication Problems Mistrust and Tension Stereotyping

Beyond Affirmative Action: Key Practices to Leverage Employee Differences Table 11.7

Multicultural Organizations  Monolithic organization  An organization that has a low degree of structural integration—employing few women, minorities, or other groups that differ from the majority—and thus has a highly homogeneous employee population

Diversity Assumptions and Their Implications for Management Table 11.8

Multicultural Organizations  Pluralistic organization  An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds

Question A ___________ organization is an organization that values cultural diversity and seeks to utilize and encourage it. A. Multi-spatial B. Multidimensional C. Multicultural D. Multi-temporal 11-32

Multicultural Organizations  Multicultural organization  An organization that values cultural diversity and seeks to utilize and encourage it

How Organizations Can Cultivate a Diverse Workforce 1. Securing top management’s leadership and commitment 2. Assessing the organization’s progress toward goals 3. Attracting employees 4. Training employees in diversity 5. Retaining employees 11-34

Attracting Employees Recruitment Accommodating Work and Family Needs Alternative Work Arrangements

Guidelines for Diversity Training Table 11.9

Retaining Employees Support Groups Mentoring Career Development and Promotions Systems Accommodation Accountability

Question ___________ are higher-level managers who help ensure that high-potential people socialized into the norms and values of the organization. A. Trainers B. Mentors C. HR specialists D. Employee coaches 11-38

Retaining Employees  Mentors  Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization

Video: Dream Dinners  How would you describe the diversity of Dream Dinners’ management team? 11-40