1. Chapter 11
Managing the
Diverse
Workforce

2. The Organization and Culture
Organizational Culture
Values, beliefs, behaviors, customs, and attitudes that help the members of the organization understand what it stands for, how it does things, and what it considers important.
Multiculturalism
The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.
Diversity
When members of a group differ from one another along dimensions such as age, gender, or ethnicity.

3. The Organization’s Culture
The Importance of Organization Culture
Culture determines the overall “feel” of the organization, although it may vary across different segments of the organization.
Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success.
Determinants of Organizational Culture
Organization’s founder (personal values and beliefs).
Symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of the organization.
Corporate success that strengthens the culture.
Shared experiences that bond organizational members together.

4. Organizational Culture
Managing Organizational Culture
Understand the current culture to understand whether to maintain or change it.
Articulate the culture through slogans, ceremonies, and shared experiences.
Reward and promote people whose behaviors are consistent with desired cultural values.
Changing Organizational Culture
Develop a clear idea of what kind of culture you want to create.
Bring in outsiders to important managerial positions.
Adopt new slogans, stories, ceremonies, and purposely break with tradition.

5. Trends in Diversity and Multiculturalism
Reasons for Increasing Diversity and Multiculturalism
Increasing diversity and multiculturalism in organizations
Increased aware-
ness that diversity
improves the quality
of the workforce
The globalization
movement
Legislation and
legal action
Changing
demographics in
the labor force
Figure 6.1

6. Dimensions of Diversity and Multiculturalism
Age Distributions
Average age of the U.S. workforce is gradually increasing and will continue to do so for the next several years.
Gender
Females were 46% of the workforce in The gender gap in the number of women in upper-management positions can be partially attributed to the discriminatory effect of the “glass ceiling” on female managers.
Ethnicity
The ethnic composition of the U.S. workforce will change most with the increasing number of Hispanic workers and the decline in white workers.

7. Age Distributions By 2025, more than one-third of the
1999
2025
Under 15
15 to 24
25 to 34
35 to 49
50 to 64
65 or
older
21.4%
20.1%
13.9%
13.1%
14%
12.9%
23.5%
18.2%
14.6%
17.2%
12.7%
18.5%
By 2025, more than one-third of the
population will be over age 50:
1999
2005
2010
2015 40
The median age will climb to 38: 39 38 37 36 35
35.5
Figure 6.2

8. Components Of A Diversified Workforce
Gender
Age
Racial and ethnic
minorities in the
United States
Other
Religious affiliation
Veteran status
Sexual orientation
Expectations and values
Lifestyle
Skill level
Educational level
Economic class
Workstyle
Function and/or position
within the company
Workforce
Diversity
Immigrants
Physically and
mentally disabled

9. How Effective Is Your Diversity Program?
Ineffective 2%
Very
Effective 8%
Undecided
13%
Somewhat
ineffective
Effective
22% 8%
Somewhat
effective
49%

10. Diversity Today (cont.)
Size of the workforce
U.S. civilian labor force is expected to reach 158 million by 2010
slowing in both the number of people joining the labor force and the rate of labor force growth
U.S. traditionally had a surplus of labor
number of jobs created expected to exceed the growth of the labor force
employers likely to outsource some work

11. Women In The Workforce Women make up about 47 percent of the workforce
99 percent of women will work for pay at some point in their lives
Overall labor force participation rate of women continues increasing while the participation rate of men declines
The long-term increase in the female labor force largely reflects the greater frequency of paid work by mothers
Today, 40 percent of multiple job holders are women
One of every five married women who works outside the home earns more than her husband

12. Diversity Today (cont.)
Workers of the future (cont.)
gender issues - a growing number of women working outside the home
balancing work life with family responsibilities and parenting presents an enormous challenge
employers offer benefits such as on-site child care and physical therapy, in-home care for disabled and elderly family members
average full-time working female earns about 75% of the average full-time working male
disparities greatest at the executive level
glass ceiling - invisible barrier hindering women and minorities from moving beyond a certain level in the corporate hierarchy
women often faced with the choice between career and family

13. Diversity Today (cont.)
Workers of the future (cont.)
gender issues (cont.)
sexual harassment - conduct of a sexual nature that has negative consequences for employment
quid pro quo harassment - submission to or rejection of sexual conduct is used as a basis for employment decisions
hostile environment - unwelcome sexual conduct has the purpose or effect of reasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment
the changing status of women has given men the opportunity to redefine their roles, expectations, and lifestyles

14. Minorities And Immigrants
Nonwhites make up about one-third of the growth rate in the workforce
Ethnic Americans now comprise nearly 25 percent of the total population
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
The number of foreign-born U.S. residents is at its highest level in U.S. history (one in ten residents)
The younger Americans are, the more likely they are to be persons of color
6.8 million people in the U.S. identify themselves as multiracial

15. Ethnicity Distribution Trends in the U.S.2 5 1 9 W h i t e O r a c l o n g u p
37.6%
62.4%
28%
72%
Racial or ethnic breakdown
Hispanics
17.6%
Blacks
13%
Asians
6.2%
Native Americans
0.8%
11.5%
12.1%
3.7%
0.7%
By 2025, Hispanics will be the largest minority group in the United States. The share of the population of each group now and projected in 2025
Figure 6.3

16. Diversity Today (cont.)
Workers of the future (cont.)
minorities and immigrants - growing percentage of the workforce
term “minority” as typically used may quickly be outdated
troubling disparities
unemployment rates are higher for minorities
weekly earning are lower for minorities
fewer executive, administrative, and managerial people of color
organizations are trying to provide more opportunities for minorities

17. Percentage Of Minority Managers
1995
1992
Senior
Front-line
Middle
19.30%
15.10%
10.60%
14.50%
11.20%
7.40%

18. Diversity Today (cont.)
Workers of the future (cont.)
mentally and physically disabled - largest unemployed minority population is the U.S.
Americans with Disabilities Act (ADA)
disability - a physical or mental impairment that substantially limits one or more major life activities
caused a dramatic increase in accessibility to public facilities
unemployment rate for disabled persons remains virtually unchanged
disabled lack access to educational and workplace environments
attitudes of employers an important barrier to employment

19. Diversity Today (cont.)
Age of the workforce
average age is increasing
people of ages 50 to 65 will increase
people of ages 16 to 24 is expected to drop
entry-level workers will be in short supply
retirement-age workers can be encouraged to remain or reenter the workforce on a flexible or part-time basis
results in cost savings on turnover and training
capitalizes on the experience of older workers

20. Diversity Today (cont.)
Future jobs and workforce qualifications
the U.S. is becoming a predominantly service-oriented economy
people without high school diplomas are at a distinct disadvantage
gap is growing between the knowledge and skills jobs require and those many employees and applicants possess
illiteracy is often the underlying problem
companies do not hire skills-deficient applicants
employers are combating this basic-skills gap
offer in-house basic-skills training program
partnerships with various educational institutions

21. Managing Diversity Versus Affirmative Action
Affirmative action (AA)
instituted to curb discrimination and correct the past exclusion of women and minorities from U.S. organizations
nonetheless, employment discrimination still persists
equal employment opportunity and AA have not adequately improved the upward mobility of women and minorities
reverse discrimination exists when qualified white males are passed over for employment opportunities
Managing diversity
means moving beyond legislated mandates to embrace a proactive business philosophy that values differences
eliminates barriers that hinder attainment of full potential

22. Managing Diversity Versus Affirmative Action (cont.)
Competitive advantage through diversity
original impetus to diversity workforces was social responsibility and legal necessity
today, many organizations are also approaching diversity from a more practical, business-oriented perspective
diversity viewed as a tool for building a competitive advantage
ability to attract and retain motivated employees
companies with reputation for diversity have competitive advantage in the labor market
companies will be sought out by most qualified employees
employees who believe that their differences are valued may become more loyal, productive, and committed

23. Managing Diversity Versus Affirmative Action (cont.)
Competitive advantage through diversity (cont.)
better perspective of a differentiated market
as the composition of the American workforce changes, so does the customer base of these companies
diverse customers may prefer to patronize such organizations
a multicultural workforce can provide a company with greater knowledge of the preferences and consuming habits of this diversified marketplace
ability to leverage creativity and innovation in problem solving
people from different backgrounds hold different perspectives
diverse work groups are freer to deviate from traditional approaches

24. Managing Diversity Versus Affirmative Action (cont.)
Competitive advantage through diversity (cont.)
enhancement of organizational flexibility
managing diversity requires a corporate culture that tolerates different styles and approaches
less restrictive policies and procedures and less standardized operating methods enable organizations to become more flexible

25. How Diversity and Multiculturalism Promote Competitive Advantage
Resource
acquisition
argument
Systems
flexibility
Creativity
Competitive
Advantage
Cost
Problem-
solving
Marketing
Figure 6.4

26. Managing Diversity Versus Affirmative Action (cont.)
Challenges of a diverse workforce
lower cohesiveness - lack of similarity in culture causes diverse groups to be less cohesive than homogeneous groups
communication problems - most common negative effect
diversity increases errors and misunderstandings
mistrust and tension - mistrust and misunderstanding of those who are different due to a lack of contact and low familiarity
stereotyping - inappropriately stereotype their “different” colleagues rather than accurately perceiving and evaluating those individuals’ contributions, capabilities, aspirations, and motivations
stereotypes affect how people are treated

27. Multicultural Organizations
Monolithic organizations
an organization that has a low degree of cultural integration
employs few women, minorities, or other groups that differ from the majority
minority employees hold low status jobs
minority employees must adopt the norms of the majority
has a highly homogeneous employee population
Plural organizations
have a more diverse employee population
use an affirmative action approach to managing diversity
some acceptance of minorities into the informal network
much less discrimination and less prejudice

28. Multicultural Organizations (cont.)
values cultural diversity and seeks to utilize and encourage it
fully integrate gender, racial, and minority group members both formally and informally
absence of prejudice and discrimination
low levels of intergroup conflict
synergistic environment
all members contribute to their maximum potential and the advantages of diversity can be fully realized

29. How Organizations Can Cultivate A Diverse Workforce
Top management leadership and commitment
top management support for diversity programs is critical
incorporate the organization’s attitudes toward diversity into the corporate mission statement, strategic plans, and objectives
establish corporate offices or committees to coordinate the companywide diversity effort that provides feedback to top management
minority advisory groups or task forces to monitor organizational policies, practices, and attitudes
assess program impact on diverse groups
provide feedback and suggestions to top management

30. How Organizations Can Cultivate A Diverse Workforce (cont.)
Organizational assessment
establish an ongoing assessment of the organization’s workforce, culture, policies, and practices
evaluate the demographics of the labor pool and customer base
identify problem areas
make recommendations where changes are needed
corporate values and norms should be identified and critically evaluated regarding their necessity and their impact on the diverse workforce

31. How Organizations Can Cultivate A Diverse Workforce (cont.)
Attracting employees
recruitment - a company’s image can be a strong recruiting tool
a reputation for hiring and promoting all types of people can be a competitive advantage
many minorities and economically disadvantaged people are physically isolated from job opportunities
companies can bring information about job opportunities to the source of labor
companies can transport labor to the jobs

32. Steps In Diversity Planning
Set numerical
standards
Calculate
percentages
Identify
qualified
workers
Match positions
to U.S. census
categories
Set general
qualifications

33. How Organizations Can Cultivate A Diverse Workforce (cont.)
Attracting employees (cont.)
accommodating work and family needs
corporate work and family policies are now one of the most important recruiting tools
providing child care leads to:
decreased turnover and absenteeism
improved morale
assist with care for elderly parents
offer time off to care for sick family members
concerns for dual-career couples expressed by:
limiting relocation requirements
providing job search assistance to relocated spouses

34. How Organizations Can Cultivate A Diverse Workforce (cont.)
Attracting employees (cont.)
alternative work arrangements
offer flexible work schedules and arrangements
compressed workweeks
job sharing - two part-time workers share one full-time job
teleworking - working from home
telecommuting - working from home via computer hookup to the main worksite

35. How Organizations Can Cultivate A Diverse Workforce (cont.)
Diversity training
attempt to identify and reduce hidden biases and develop skills needed to effectively manage a diversified workforce
awareness building - designed to increase awareness of the meaning and importance of valuing diversity
sensitize employees to assumptions they make about others
become familiar with myths, stereotypes, and cultural differences
become familiar with organizational barriers that inhibit the full contributions of all employees
teach the unwritten “rules” or cultural values to those who need to know them

36. How Organizations Can Cultivate A Diverse Workforce (cont.)
Diversity training (cont.)
skill building - designed to allow all employees and managers to develop the skills they need to deal effectively with one another and customers in a diverse environment
most of the skills taught are interpersonal
develop personal action plans before they leave the program
experiential exercises and videotapes often are used

37. How Organizations Can Cultivate A Diverse Workforce (cont.)
Retaining employees
support groups - form minority networks to promote information exchange and social support
provide emotional and career support
help diverse employees understand work norms and cultures
mentoring - higher-level managers help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization
help diverse employees enter the informal network
career development and promotion - establish teams to evaluate the career progress of diverse employees
devise ways to move them up through the ranks

38. How Organizations Can Cultivate A Diverse Workforce (cont.)
Retaining employees (cont.)
systems accommodation - recognize:
cultural and religious holidays
differing modes of dress
dietary restrictions
needs of individuals with disabilities
accountability - managers held accountable for workforce development
performance appraisal and reward systems reinforce the importance of effective diversity management

39. Toward The Multicultural Organization
Basic Characteristics
Pluralism in which every organizational group works to understand every other group.
Full structural integration such that the makeup of the organization reflects the external labor market.
Full integration of the informal network that removes barriers to entry and participation in the organization.
Absence of prejudice and discrimination.
No gap in organizational identification based on cultural identity group.
Low levels of intergroup conflict.