Diversity in OrganizationsBUS 107Dr. Raj K. Singh

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Agenda2

Explain the pervasive demographic changes occurring in the domestic and global marketplace and how corporations are responding.

Explain how the definition of diversity has grown to recognize a broad spectrum of differences among employees, and appreciate the dividends of a diverse workforce.

Explain the complex attitudes, opinions, and issues that employees bring to the workplace, including prejudice, discrimination, stereotypes, and ethnocentrism.

Agenda (Continued)

Explain the factors that affect women’s opportunities, including the glass ceiling, the opt-out trend, and the female advantage.

Explain the five steps in developing cultural competence in the workplace.

Describe how diversity initiatives and training programs help create a climate that values diversity.

Explain how multicultural teams and employee network groups help organizations respond to the rapidly changing and complex workplace.

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Do You Know Your Biases?4

As a manager, your day-to-day behavior will send signals about your biases and values.

What is Diversity?

Diversity represents all the ways we are different

Laws provide the first basis for diversity: equal employment opportunity

Laws based on historical discrimination against certain groups in our society: race, sex, color, religion, national origin, disability, etc.

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Why Value Diversity?

Future workforce will have huge demographic variations

Companies report competitive advantage as the key driver of diversity efforts

Diverse markets require diverse operatives; organizations must know the markets they seek to serve

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The Changing Workplace7

Diversity in the United States

Aging Workforce

Growth in Hispanic and Asian Workers

Minority Purchasing Power

Growth in Foreign-born Population

Global Diversity

The aging population is a global phenomenon

Social and cultural differences are creating challenges

The meaning of diversity differs around the world

Global businesses have global customers, employees, suppliers, and stockholders

Biographical Characteristics and How They Are Relevant to OB

AgeThe U.S. workforce is aging. Does job performance decline with increasing age?Studies show that turnover and absenteeism rates are lower among older workers, and age is not associated with lower productivity.

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The Village Earth

If we could shrink the earth's population to a village of precisely 100 people, with all the existing human ratios remaining the same, it would look something like the following. There would be:

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The Village Earth 57 Asians

21 Europeans; 14 from the Western Hemisphere, both north and south8 Africans

52 would be female48 would be male

70 would be non-white30 would be white

70 would be non-Christian30 would be Christian

89 would be heterosexual11 would be homosexual

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The Village Earth

80 would live in substandard housing 70 would be unable to read 50 would suffer from malnutrition 1 would be near death; 1 would be near birth 1 (yes, only 1) would have a college education Less than 2 would own a computer

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The Challenge of Workplace Diversity?

The challenge lies in the continuous improvement of the integration and social acceptance of people from different backgrounds.

Our differing human characteristics influence the way we think, act, interact, and make choices.

Often, these differences interfere with our ability to support, trust, and respect each other, and thus to effectively function together.

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Leaders in Corporate Diversity

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Growth in Employment from 2006 to 2016 by Group

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Managing Diversity15

Diversity is all of the ways in which people are different

Companies are embracing a more inclusive definition of diversity Spectrum of differences: how employees

approach work, interact, approach work, derive satisfaction and define who they are…

Traditional vs. Inclusive Models of Diversity

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Dividends of Workplace Diversity17

Better use of employee talent

Increased understanding of the marketplace

Increased quality of team problem solving

Reduced costs associated with high turnover, absenteeism, and lawsuits

Factors Shaping Personal Bias

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Stereotypes are often based on folklore, media portrayals, and other unreliable sources of information

Stereotypes contain negative connotations

Stereotypes assume that all members of a group have the same characteristics

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Title VII of the Civil Rights Act of 1964

The Equal Pay Act of 1963

The American with Disabilities Act

The Age Discrimination in Employment Act

Federal and State Laws Regarding Diversity

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Factors Affecting Women’s Careers

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Glass Ceiling. An invisible barrier that separates women from top management positions.

Opt-Out Trend. Many women are deciding to get off the fast track to top management before hitting the glass ceiling.

The Wage Gap21

Biographical Characteristics and How They Are Relevant to OB

SexThere are no consistent male-female differences in problem solving ability, analytical skills, competitive drive, motivation, sociability, or learning drive. But women earn less than men for the same positions and have fewer professional opportunities. Lilly Ledbetter

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Diversity Initiatives and Programs

Changing Structures and Policies

Expanding Recruitment Efforts

Establishing Mentor Relationships

Accommodating Special Needs

Providing Diversity Skills Training

Attracting, selecting, developing, and retaining diverse employees Target recruiting messages to specific

demographic groups. Ensure that hiring is bias free. Create a positive diversity climate.

How OrganizationsManage Diversity Effectively

Diversity in groups Most people in groups need a common way

of looking at and accomplishing major tasks, and they need to communicate well with each other. Emphasize higher-level similarities among

people. Use transformational leadership.

How OrganizationsManage Diversity Effectively

Effective diversity programs Teach managers about the legal framework

for equal employment opportunity and encourage fair treatment of all people.

Teach managers how a diverse workforce will be more effective at serving a diverse customer base.

Foster personal development practices that bring out the skills and abilities of everyone.

How OrganizationsManage Diversity Effectively

Increasing Awareness of Sexual Harassment

Sexual harassment creates an unhealthy and unproductive work environment

Sexual Harassment is illegal, violation of Civil Rights Act

150% increase in sexual harassment filings in US

Companies are creating awareness programs

Why Value Diversity?

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The Business Case for Diversity

Improved Organizational Performance

Companies rated on Fortune’s “50 Best Companies for Minorities” outperformed the S&P 500 over three- and five-year periods

Academy of Management Journal: Organizations with diverse management teams correlate with superior corporate performance

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The Business Case for Diversity

Reduced Turnover, Improved Retention

Society for Human Resource Management (SHRM) study: diversity initiatives positively affect the bottom line Ability to recruit Ability to retain Improved client relations Improved productivity Improved corporate culture

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The Business Case for Diversity

Increased Innovation

Diversity provides a richer variety of approaches to work and problem solving

Diversity strengthens an organization's resilience in changing environmental conditions

Diversity allows challenges to long-accepted views

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The Business Case for DiversityIncreased Effectiveness in Minority Markets

Helps organizations understand how to effectively interact with all of its client base

Informs organizational practices that create community support in all populations

Helps manage perceptions of historically underserved markets

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The Business Case for Diversity

Positive Impact on Group Performance

SHRM and Fortune survey concluded that diversity:

Improves corporate culture – 83% Improves employee morale – 70% Increases creativity – 59% Decreases interpersonal conflict – 58% Enables movement into emerging

markets – 57% Improves productivity – 52%

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Class Discussion Question

What can we do as managers to show our employees that diversity is valued? Please explain with examples.

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