The changing face of the workforce Diversity Refers to variation in the important human characteristics that distinguish people from one another. Workforce diversity trends: More women are working than ever before. Immigration has profoundly reshaped the workplace. Ethnic and racial diversity is increasing. The workforce will continue to get older.

Figure 19.2 The Gender and Race Pay Gap

Figure 19.3 Extent of Diversity in Selected Management Occupations

Equal employment opportunity Discrimination based on race, color, religion, sex, national origin, physical or mental disability, or age is prohibited in all employment practices. Government contractors must have written affirmative action plans detailing how they are working positively to overcome past and present effects of discrimination in their workforce. Women and men must receive equal pay for performing equal work, and employers may not discriminate on the basis of pregnancy.

Major federal laws and executive orders prohibiting job discrimination Equal Pay Act (1963)—Mandates equal pay for substantially equal work by men and women. Civil Rights Act (1964; amended 1972, 1991)—Prohibits discrimination in employment based on race, color, religion, sex, or national origin. Executive Order (1965)—Mandates affirmative action for all federal contractors and subcontractors. Age Discrimination in Employment Act (1967)—Protects individuals who are 40 years of age or older. Figure 19.4a

Major federal laws and executive orders prohibiting job discrimination Equal Employment Opportunity Act (1972)—Increases power of the Equal Employment Opportunity Commission to combat discrimination. Pregnancy Discrimination Act (1978)—Forbids employers to discharge, fail to hire, or otherwise discriminate against pregnant women. Americans with Disabilities Act (1990)—Prohibits discrimination against individuals with disabilities Family and Medical Leave Act (1993)—Requires companies with 50 or more employees to provide up to 12 weeks unpaid leave for illness, care of a sick family member, or the birth or adoption of a child. Figure 19.4b

Affirmative action Since the mid-1960s, major government contractors have been required by presidential executive order to adopt written affirmative action plans specifying goals, actions, and timetables for promoting greater on-the-job equality. Their purpose is to reduce job discrimination by encouraging companies to take positive steps to overcome past employment practices and traditions that may have been discriminatory. Critics argue that affirmative action is inconsistent with the principles of fairness and equality. In 1995, the Supreme Court ruled that affirmative action laws were legal but only if they were temporary and flexible.

Affirmative Action Plans Supreme Court’s decision in the two cases involving the University of Michigan Many large Cos filed briefs supporting UM Polls show Americans overwhelmingly opposed to preferences, but also overwhelmingly in favor of diversity Court ruled undergraduate admission policy unconstitutional – granting points to minority applicants too close to quota had also awarded points for athletic ability and “legacy” status, but not as many Court ruled law school admission policy constitutional, in that it involved individual consideration rather than mechanistic formula Racial diversity found to be a public interest Only highly selective universities (~20%) really impacted In 2001, 64% of whites, 55% of African-Americans, 52% of Latinos went to college Some argue real problem is not access but low test scores, which impacts admission to highly selective universities absent affirmative action Source: The Economist, 6/28/03

Hostile Work Environment and the “Assumption of Risk” You are a restaurant manager and patrons are making arguably offensive comments to female waitstaff. What do you do? Does it matter whether it’s Hacienda or Hooters? Hooters staff must sign Co SH policy, which includes acknowledgement that “female sexual appeal is an essential ingredient of the Hooters concept” Also must sign Ee handbook containing waiver: “Work environment is one in which joking and innuendo based on female sex appeal is commonplace….I do not find my job duties, uniform requirements, or work environment to be offensive.” Uniform requirements include orange shorts, Hooters t-shirt, half-shirt, tank top, and “prom-like appearance” (hair, makeup, nails done neatly) In Washington D.C. area, mngr filed SH case based in part on boss taking her to lunch at Hooters Settled hiring discrimination lawsuit in 1997, after EEOC dropped action in 1996

Diversity practices Actions taken by companies to manage diversity effectively: 1. They articulate a clear diversity mission, set objectives, and hold managers accountable. 2. They spread a wide net in recruitment, to find the most diverse possible pool of qualified candidates. 3. They identify promising women and persons of color, and provide them with mentors and other kinds of support. 4. They set up diversity councils to monitor the company’s goals and progress toward them.

Power: Do Women Really Want It? Between one-quarter and one-third of professional women are out of work force Number of children being cared for by stay-at-home moms has increased by nearly 13% in less than a decade Percentage of new mothers who go back to work fell to 55% in 2000, from 59% in 1998 Two-thirds of mothers work fewer than 40 hrs/wk Only 5% work 50+ hrs White male MBAs: 95% working full-time; white female MBAs: 67% (African-American female MBAs more similar to white men than women)

Power: Do Women Really Want It? Significant organizational challenge in redesigning organizations to take advantage of mothers ready to re-enter work force Attract, retain, motivate, plus now re-integrate? Many professional women who quit their jobs to raise children now trying to go back – and they’re finding it harder than they ever imagined Two-thirds of highly-educated women who left jobs mainly for family reasons want to return to work Deloitte & Touche planning to launch “Personal Pursuits” program, which will allow ees to take unpaid leave for as long as five years Training sessions for those on leave, mentors to stay in touch “There’s a part of every woman who has had what it takes to succeed on Wall Street that yearns for that type of overachieving applause that you got, and that motherhood does not allow you to have. There’s just no applause. And I miss that.” Source: Wall Street Journal, 5/6/04

Power: Do Women Really Want It? Some evidence of growing dissatisfaction on part of men w/ price required to advance in corporate America, desire for same flexibility and balance that women want Belkin suggests that instead of women being forced to act like men, men are being freed to act like women Number of married men who are full-time caregivers to their children has increased 18% (to what and from when?) Working men born between 1965 and 1979 now spend ~3.5 hrs/day with their children – same amount as working women Among all working men, ~2.7 hrs, up from 1.8 hrs in % of men report they would take a pay cut to spend more time at home w/ family, almost half would turn down promotion if it meant less family time Biggest change is new unwillingness to relocate (Business Week, 11/8/04) Family-friendly organization? Better opportunities to work flexible hours, share jobs, not relocate

Get a Life! Men and women far more alike in desires than had been assumed 84% of senior Fortune 500 male execs say they’d like job options that let them realize professional aspirations while having more time for things outside work 55% say they’re willing to sacrifice income 80-hr week had become norm in consulting, law, investment banking Jeff Immelt, GE CEO, boasts of working 100 hrs/wk for 25 years “Businesses need to be 24/7 – individuals don’t” (Anne Mulcahy, CEO Xerox) Nearly half believe that for exec to bring this up w/ boss will hurt career The younger the exec is, the more likely to care about this Fortune, 11/28/05