1. Michael A. Hitt C. Chet Miller Adrienne Colella organizational diversity

2. K NOWLEDGE O BJECTIVES  Define organizational diversity and distinguish between affirmative action and diversity management.  Distinguish among multicultural, plural, and monolithic organizations.  Describe the demographic characteristics of the U.S. population and explain their implications for the composition of the workplace.  Discuss general changes occurring in the United States that are increasing the importance of managing diversity effectively.  Understand why successfully managing diversity is extremely important for high-involvement work organizations.  Discuss the various roadblocks to effectively managing a diverse workforce.  Describe how organizations can successfully manage diversity. ?

3. D IVERSITY A characteristic of a group of people where differences exist on one or more relevant dimensions.

4. M ULTICULTURAL O RGANIZATION The organizational culture values differences.

5. P LURAL O RGANIZATION Has a diverse workforce and takes steps to be inclusive and respectful of differences, but where diversity is tolerated rather than valued.

6. M ONOLITHIC O RGANIZATION Homogeneous

7. A FFIRMATIVE A CTION VERSUS D IVERSITY M ANAGEMENT Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity Management Programs Ongoing, permanent changesTemporary, until representation of disadvantaged groups Time Frame Attempts to uncover the root causes of diversity problems Does not address the cause of problems Cause of Problems Allows all associates to reach their full potential Recruitment, mobility, and retention Focus Assumes that managers and the organizations will change Assumes individuals will assimilate and adapt Assimilation Create an inclusive, empowered work environment Prevent and remedy discrimination Purpose Diversity ManagementAffirmative Action

8. F ORCES OF C HANGE  Changing Population Demographics  Increase in the Service Economy  Global Economy  Requirements for Teamwork

9. H IGH -I NVOLVEMENT O RGANIZATIONS Commitment to the organization Job involvement Satisfaction Individual Outcomes Decision-making Creativity Complex tasks Productivity Return on equity Market performance Group Outcomes Organizational Outcomes

10. S OCIETAL AND M ORAL O UTCOMES $10.5M & $8M $192.5M $176M $132.5M $250M $47M $508M

11. R OADBLOCKS TO D IVERSITY  Prejudice and Discrimination  Stereotyping  Differences in Social Identity  Power Differentials  Poor Structural Integration  Communication Problems

12. Prejudice Unfair negative attitudes about people who belong to social or cultural groups outside our own. Discrimination Behavior resulting in unequal treatment of individuals based on group membership. Modern Racism Subtle discrimination despite people knowing it is wrong to be racially prejudice and thinking they are not. P REJUDICE AND D ISCRIMINATION STOP

13. S TEREOTYPING  Generalized beliefs about the characteristics of a group of individuals.

14. W HAT A RE Y OUR B ELIEFS A BOUT T HESE P EOPLE ? Women People with Disabilities White Men Black People Japanese Men Jewish People AthletesAccountantsArab People Adapted from Exhibit 2-4: Common Stereotypes Applied to Various Groups of People

15. S OCIAL I DENTITY Person’s knowledge that he/she belongs to certain social groups, where belonging has emotional significance. Adapted from Exhibit 2-5: Sample Self-Identity Structures Sample Social-Identity Structures

16. P OWER D IFFERENTIALS  Sources of Power  Expert knowledge  Formal position  Control rewards/resources  Being irreplaceable Ascribed Status Status and power that is assigned by cultural norms and depends on group membership.

17. S TRUCTURAL I NTEGRATION Degree to which minorities and women are represented in all occupations within an organization.

18. P OOR S TRUCTURAL I NTEGRATION Middle Management 0% 2%0% 1%10%2% 0%5%15%5% 25% 40%26% 60%65%80%75% 0.5% 3.25% 6.25% 29% 70% Finance Marketing HR Sales Average All Functions Top Management Supervisor Staff Line Worker Percentage of people who are female and/or racial and ethnic minority group members Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations

19. G OOD S TRUCTURAL I NTEGRATION 35% Top Management Supervisor Staff Middle Management Line Worker Finance Marketing HR Sales Average All Functions Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations Percentage of people who are female and/or racial and ethnic minority group members

20. C OMMUNICATION P ROBLEMS  Willingness to openly disagree  Importance of maintaining ‘face,’ or dignity  Way agreement is defined  Time devoted to establishing personal relationships  Willingness to speak assertively  Mode of communication  Personal space and nonverbal communication

21. C RITERIA FOR C REATING AND M ANAGING D IVERSITY  Commitment from upper-level management  Diversity linked to strategic plan  Involve associates

22. S TRATEGIC LENS Check out http://wileymanagementupdates.com/http://wileymanagementupdates.com/ for daily articles related to management in the news.  How does organizational diversity contribute to an organization’s competitive advantage?  What actions are required to create diversity in an organization, particularly in one that has homogeneous membership at present?  How does diversity in an organization affect its strategy?