Managing Diversity and Inclusion Chapter Nine © 2013 by McGraw-Hill Education.  This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.  This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 

Learning Objectives LO 1 Describe how changes in the U.S. workforce make diversity a critical organizational and managerial issue LO 2 Explain how diversity, if well managed, can give organizations a competitive edge LO 3 Identify challenges associated with managing a diverse workforce LO 4 Define monolithic, pluralistic, and multicultural organizations LO 5 List steps managers and their organizations can take to cultivate diversity LO 6 Summarize the skills and knowledge about cultural differences needed to manage globally

Managing Diversity Affirmative action Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past. Legislation has not completely solved the problem of discrimination - women and minorities still face challenges in upward mobility.

Affirmative Action Programs The purpose of affirmative action programs is to… compensate for past discrimination prevent ongoing discrimination provide equal opportunities to all, regardless of race, color, religion, gender, or national origin The purpose of affirmative action programs is to compensate for past discrimination, which was widespread when legislation was introduced in the 1960s. Its purpose was to prevent ongoing discrimination and to provide equal opportunities to all, regardless of race, color, religion, gender, or national origin. 1.1

Diversity a variety of demographic, cultural, and personal differences among an organization’s employees and customers

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.

General Purpose of Diversity Programs To create a positive work environment where… no one is advantaged or disadvantaged “we” is everyone. everyone can do his or her best work. differences are respected and not ignored. everyone feels comfortable. 1.1

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

Women and non-white minorities faced particularly difficult challenges, which lasted throughout the 1960s. Today more than half of the U.S. workforce consists of people other than white, U.S. born males. Two-thirds of all global migration is into the U.S. Today’s immigrants are willing to be part of an integrated team, but they no longer are willing to sacrifice cultural identities to get ahead.

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

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 1964

Components of Workforce Diversity Figure 9.1

Components of Workforce Diversity The Size of the Workforce – expected to reach 158 million by 2010. The expansion of diversity programs in U.S. companies The Workers of the Future white, American-born males still constitute 38 percent of the workforce but account for 15 percent of the net growth. Eighty-five percent of workforce growth is by U.S. born white females, immigrants, and minorities.

Question A(n) ___________ is an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy. Organization chart Glass ceiling Glass limit Personnel limit The correct answer is b – glass ceiling. See next slide.

Gender Issues Women make up 47 percent of the workforce 99 out of 100 women will work for pay at some point in their lives About 60% of all marriages are dual-earner marriages. 1 out of every 5 married women who work outside the home earns more than her husband.

Gender Issues Glass ceiling an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy

Gender Issues Sexual harassment Conduct of a sexual nature that has negative consequences for employment.

Sexual Harassment Quid pro quo harassment Hostile environment 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

Common Managerial Mistakes in Sexual Harassment Laws Assuming: That the victim and harasser must be of the opposite sex That harassment can only occur between coworkers or supervisors and subordinates That only victims can file complaints What common mistakes do managers make when it comes to sexual harassment laws? First, many assume that the victim and harasser must be of the opposite sex. According to the courts, they do not. Sexual harassment can also occur between people of the same sex. Second, it is assumed that sexual harassment can occur only between co-workers or between supervisors and subordinates. Not so. Sexual harassers can also include agents of employers, such as consultants, and can even include nonemployees. The key is not employee status but whether the harassment takes place while conducting company business. Third, it is often assumed that only people who have themselves been harassed can file complaints or lawsuits. In fact, especially in hostile work environments, anyone affected by offensive conduct can file a complaint or lawsuit. 1.3

Company Responsibilities Respond immediately to make sure sexual harassment laws are followed Write a clear, understandable sexual harassment policy Establish clear reporting procedures Be in compliance with federal, state, and local sexual harassment laws The above list describes what companies should do to make sure that sexual harassment laws are followed and not violated. 1.3

Top 10 Companies for Executive Women Abbott Labs Aetna American Express Fleishman-Hillard General Mills IBM Johnson & Johnson Marriott International Office Depot Wellpoint

Basic Components of an Effective Sexual Harassment Policy

Minorities and Immigrants Black, Asian, and Hispanic workers hold more than one of every four jobs Asian and Hispanic workforces are growing the fastest, followed by the African-American workforce Three in 10 college enrollees are people of color. By 2020, most of California’s entry-level workers will be Hispanic

Minorities and Immigrants English has become the second language for much of the population in California, Texas, and Florida. The younger Americans are, the more likely they are to be persons of color Foreign-born workers make up more than 16 percent of the U.S. civilian labor force One in 66 people in the United States identifies himself or herself as multiracial Banks and other service organizations find that by hiring a diverse mix of employees, and teaching them to collaborate with each other, they are better able to serve all of their potential customers.

Percentage of the projected U. S Percentage of the projected U.S. labor force by race and Hispanic origin (2010 to 2050) Exhibit 9.3

Successful immigrant entrepreneurs in the United States Exhibit 9.2

Mentally and Physically Disabled People The largest unemployed minority in the U.S. The share of the population with a disability is growing Number of people with disabilities increased by 25% in the last decade, but only 32% of Americans with disabilities, ages 18-64 are working. 66% of people with disabilities who are unemployed would rather be working Assistive technologies make it easier for companies to comply with the Americans with Disabilities Act

Mentally and Physically Disabled People Employers find that disabled employees are: more dependable than typical employees miss fewer days of work exhibit lower turnover. Tax credits are available to companies that hire disabled workers.

The Age of the Workforce One in three workers today is over age 45 By 2006, the median age of America’s workforce will rise up to 40.6, up from 30 in the early 1960s 68% of workers between the ages of 50 and 70 plan to work in retirement or never retire. Some companies are offering special programs to attract and retain older workers.

Tomorrow’s Workers will be More Varied than Ever By 2018, it is estimated that one out of three workers will be aged 55 or older Entry-level workers for some positions will be in short supply 70% of workers between 45-74 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

Well-Managed Diversity and Inclusion: A Competitive Advantage 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

A Diverse and Inclusive Workforce: Challenging to Manage Unexamined Assumptions Lower Cohesiveness Communication Problems Stereotyping Mistrust and Tension

Misleading and More Accurate Assumptions about Diversity Exhibit 9.5

Multicultural organizations There are three basic types of organizations with regard to diversity: Monolithic organization is 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. Pluralistic organization is an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds. Multicultural organization is an organization that values cultural diversity and seeks to utilize and encourage it.

How Organizations Can Cultivate a Diverse Workforce Secure top managers’ commitment Incorporate the organization’s attitude toward diversity into the corporate mission statement and into strategic plans and objectives. Allocate adequate funding to ensure the success of diversity efforts. Set an example for organization members by participating in diversity programs and making participation mandatory for all managers. Conduct an organizational assessment Improves diversity by evaluating workforce, culture, policies, and practices in areas such as recruitment, promotions, benefits, and compensation.

Attract a Diverse Group of Qualified Employees Recruitment Accommodating Work and Family Needs Alternative Work Arrangements

Train Employees to Understand and Work with Diversity Awareness building is designed to increase awareness of the meaning and importance of valuing diversity. Skill building is designed to allow all employees and managers to develop the skills they need to deal effectively with one another and with customers in a diverse environment.

Train Employees to Understand and Work with Diversity Guidelines for diversity training Position training in your broad diversity strategy. Do thorough needs analysis. Distinguish between education and training. Use a participative design process. Test the training thoroughly before rollout. Incorporate diversity programs into the core-training curriculum.

Retain Talented Employees Support Groups Mentoring Career Development and Promotions System Accommodation Accountability

Retain Talented 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.

Managing Across Borders When establishing operations overseas, headquarter executives have a choice between sending: Expatriate Parent-company nationals who are sent to work at a foreign subsidiary cost personal security Stress Host-country nationals availability familiarity with language and culture cost less Third-country nationals can soften political tensions ‘compromise solution’ between expatriate and host country national

Ways to Prevent Failed Global Assignments Exhibit 9.6

Global Managers need Cross-Cultural Skills Skills and knowledge include: a. multidimensional perspective b. proficiency in line management and decision making c. having resourcefulness d. cultural adaptability e. sensitivity f. team-building skills g. mental maturity

How to Land an International Assignment Let them know Study a foreign language Volunteer to be an “ambassador”

Managing Across Borders Inpatriate a foreign national brought in to work at the parent company Ethnocentrism the tendency to judge others by the standards of one’s group or culture, which are seen as superior

Managing Across Borders Culture shock the disorientation and stress associated with being in a foreign environment Geert Hoftede’s dimensions of cultural differences: power distance individualism/collectivism uncertainty avoidance masculinity/femininity

When working with foreign nationals, it is important to explain U. S When working with foreign nationals, it is important to explain U.S. cultural norms with regard to: Holding meetings Work schedules E-mail Fast-trackers Feedback

International Management introduces Complex Ethical Challenges General Dynamics and United Technologies have established codes of conduct for international business. Four steps for establishing and reinforcing these codes might include the following: Vigorously oversee the corporate ethics and culture Ensure that the company has articulated its values. Let business partners know the standards Include character, integrity, decision-making, and other values information in performance reviews and succession-management processes. Most people embrace five core values, regardless of religion or nationality: compassion fairness honesty responsibility respect for others.

Develop a list of stereotypes that they have heard about Americans Answer the following questions: How do you think these stereotypes developed? How do there stereotypes influence communication between employees in the U.S.and their counterparts in other countries?

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Video: BMW What is the “silver tsunami”? What changes did BMW make to its assembly line to help older workers? What impact did these changes have on production?