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Chapter Managing the Diverse Workforce 11 McGraw-Hill/Irwin Management, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

11-3 Learning Objectives  After Studying Chapter 11, You will know  How changes in the U.S. workforce make diversity a critical organizational and managerial issue.  The distinction between affirmative action and managing diversity.  How managers can gain a competitive edge by managing diversity effectively.  What challenges a manager is likely to encounter with a diverse workforce.  How managers and their organizations can take steps to cultivate diversity

11-4 Diversity: A Brief history  Few societies have access to the range of talents available in the US, with its immigrant tradition and racially and ethnically diverse population  Managing diversity is one of America’s biggest challenges – and opportunities  Managing diversity is a term used to describe the process of 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

11-5 Diversity: A Brief history  The traditional American image of diversity has been one of assimilation  Employees often abandoned most of their ethnic and cultural distinctions at work to keep their jobs and get ahead

11-6 Diversity Today  Diversity refers to far more than skin color and gender  Differences include religious affiliation, age, disability status, military experience, sexual orientation, economic class, educational level and lifestyle  This is in addition to gender, race, ethnicity, and nationality

11-7 Diversity Today

11-8 Diversity Today  Managing diversity may seem a contradiction within itself because it requires  Being acutely aware of characteristics common to a group of employees while  Managing these employees as individuals  Managing diversity means that management does not just tolerate or accommodate differences they also support, nurture, and utilize these differences to the organization’s advantage

11-9 Diversity Today

11-10 The Size of the Workforce  Historically the United States has experienced a surplus of workers  Lower birthrates in the US, as well as other developed countries, are resulting in a smaller labor force  Projections for period suggest that there will be an even greater slowdown in the pace of labor force growth due to the retiring of the baby-boom generation

11-11 The Workers of the Future  White American-born males dominated the US workforce until recently  Currently this group constitutes 38% of the workforce  It accounts for only 15% of the net growth  The Census Bureau predicts that between 2000 and 2020 the number of African- American, Hispanics, Asians, and Native Americans will grow by 42 million while the number of Caucasians will grow by only 10 million

11-12 Gender Issues  47% of the workforce is women  99 of 100 women will work for pay at some point  The participation rate of women in the workforce continues to rise while men’s declines  60% of all marriages are dual-earner marriages  One of every five married women earns more then her husband

11-13 Gender Issues  The average full-time working woman earns only about 77% s much as men in the same job  As women, and minorities, move up the corporate ladder they may encounter a glass ceiling  The glass ceiling is an invisible barrier that makes it difficult for women and minorities to move beyond a certain level  One persistent concern for both men and women is the problem of sexual harassment

11-14 Minorities and Immigrants  Minorities and immigrants hold approximately one of every four jobs in the  United States  Asian and Hispanic workforces are growing the fastest in the Unite States, followed by the African-American workforce  Three in ten college enrollees are people of color  By 2020, most of California’s entry-level workers will be Hispanic  English has become the second language for much of the population in California, Texas, and Florida  Foreign-born workers make up 14 percent of the U.S. civilian labor force  The younger Americans are, the more likely they are to be persons of color  One in 40 people in the United States identifies himself or herself as multiracial, and the number could soar to 1 in 5 by 2050

11-15 Mentally and Physically Disabled  The largest unemployed minority population in the US is people with disabilities  During the last decade the number of Americans with disabilities increased 25 %  Mentally and Physically disabled people represent an unexplored but fruitful labor market for most businesses

11-16 The Age of the Workforce  One and three workers is over age 45 and by 2006 the median age of America’s workforce will be 40.6  In the early 1960’s the median age was 30  Industries such as nursing and manufacturing are already facing a tremendous loss of expertise as a result of downsizing and a rapidly aging workforce  The Bureau of Labor Statistics projects that entry-level workers will be in short supply

11-17 The Age of the Workforce  68% of workers between the ages of 50 and 70 plan to work in retirement or never retire  Employers will need strategies to help retain and attract the talent older workers have to offer

11-18 Managing Diversity versus Affirmative Action  To correct the past exclusion of women and minorities, companies introduced affirmative action  Affirmative Action is a special effort to recruit and hire qualified members of groups that have been discriminated against in the past  Legal remedies to end discrimination have had a powerful impact in transforming our society and organizations in positive ways  However the legislative approach tends to result in fragmented efforts that have not achieved fully the integrative goals of diversity

11-19 Managing Diversity versus Affirmative Action  Affirmative action and diversity are complementary, not the same  Managing diversity means moving beyond legislated mandates to embrace a proactive business philosophy that sees differences as a positive value  Managing diversity means people are treated as individuals equally but not necessarily the same

11-20 Competitive Advantage through Diversity  Diversity can be a powerful tool for building competitive advantage by  Attracting and retaining motivated employees in a competitive labor market  Gaining better perspectives on differentiated markets  Promoting creativity and innovation in problem solving  Enhancing organizational flexibility through varied styles and approaches

11-21 Challenges of a Diverse Workforce  To become effective managers of diverse organizations challenges must be identified and overcome  Unexamined Assumptions  Lower Cohesiveness  Communication Problems  Mistrust and tensions  Stereotyping

11-22 Multicultural Organizations  To capitalize on the benefits and minimize the costs of a diverse workforce, management needs to examine their organization’s prevailing assumptions about people and cultures  Based on the assumptions organizations can be classified as  Monolithic is an organization with a low degree of structural integration  Pluralistic organizations are more diverse and take steps to involve persons from different backgrounds  Multicultural organizations

11-23 Multicultural Organizations

11-24 Top Management Leadership and Commitment  Obtaining top management leadership and commitment is critical for diversity programs to succeed  Ways to communicate this commitment include  Incorporating the organization’s attitudes toward diversity into the mission statement and strategic plans  Allocating funding to diversity efforts  Setting the example for organizational members by participating in diversity programs value cultural diversity and seek to utilize and encourage it

11-25 Organizational Assessment  The objective of organizational assessment is to identify problem areas and make recommendations where changes are needed  Management should establish an ongoing assessment of the organization’s workforce, culture, policies, and practices

11-26 Attracting Employees  Recruitment – companies with reputations for hiring and promoting all types of people have a competitive advantage  Accommodating work and family needs  Alternative work arrangements

11-27 Training Employees  Traditionally most management training has been based on the unstated assumption that managing means managing a homogeneous, often white male, full-time workforce  Diversity training programs attempt to identify and reduce hidden biases and develop the skills need to manage a diversified workforce

11-28 Training Employees  Diversity training has two components  Awareness building is designed to increase the 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

11-29 Training Employees

11-30 Retaining Employees  Replacing qualified experienced workers is difficult and costly  Aetna estimates its annual turnover expense at more then $100 million  A number of policies and strategies can be used to retain good workers  Support groups  Mentoring  Career Development and Promotions  Systems Accommodation  Accountability

11-31 Looking Ahead  Chapter 12 Leadership  What it means to be a leader.  What people want and organizations from leaders.  How a good vision helps you be a better leader.  How to understand and use power.  The personal traits and skills of effective leaders.  The behaviors that will make you a better leader.  What it means to be a charismatic and transformational leader.  The many types of opportunities to be a leader in an organization.  How to further your own leadership development.

11-32 Sexual Harassment  Conduct of a sexual nature that has negative consequences for employment  Sexual harassment falls into two different categories  Quid Pro Quo Harassment occurs when submission or rejection of sexual conduct is used as a basis for employment decisions  Hostile Environment occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment Return