Managing a Diverse WorkforceManaging a Diverse Workforce

The Changing Face of the Workforce Gender and Race in the Workplace Government’s Role in Securing Equal Employment

Opportunity What Business Can Do: Diversity Policies and Practices Balancing Work and Life

Chapter

19

The changing face of the workforceThe changing face of the workforce

DiversityRefers 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.

Proportion of women in the labor forceProportion of women in the labor forceFigure 19.1

0

10

20

30

40

50

60

70

1950 1960 1970 1980 1990 2001Year

Perc

ent

The gender and race pay gapThe gender and race pay gapFigure 19.2

Where women and minorities manageWhere women and minorities manage

Percentage of Total, 2001 Female Black Hispanic

All occupations 46.6% 11.3% 10.9%Managerial and professional 50.0 8.3 5.1 Executive, administrative, and managerial 46.0 7.9 5.6Public officials and administrators 51.5 14.5 7.0Financial managers 52.1 6.6 4.2Personnel and labor relations managers 68.2 11.4 7.3Purchasing managers 42.6 8.9 4.3Marketing, advertising, & public relations mgrs. 39.3 3.7 4.3Educational administrators 64.1 11.5 5.7Health care managers 77.3 7.5 5.6Property and real estate managers 48.8 8.2 7.7Management—related occupations 58.6 9.7 5.7

Figure 19.3

Breaking the glass ceilingBreaking the glass ceiling

Although women and minorities are as competent as white men in managing people and organizations, they rarely attain the highest positions in corporations.

In 2002, only 16% of executives were women. Only 12% of board members of Fortune 500 firms were women

in 2001. Persons of color (men and women) now make up 19% of

corporate directors.

Equal employment opportunityEqual 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 Major federal laws and executive orders prohibiting job discriminationprohibiting 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 11246 (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 Major federal laws and executive orders prohibiting job discriminationprohibiting 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 actionAffirmative 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.

Benefits of managing diversityBenefits of managing diversity

Companies that promote equal employment opportunity generally do better at attracting and retaining workers from all backgrounds.

Businesses with employees from varied backgrounds can often more effectively serve customers who are themselves diverse.

The global marketplace demands a workforce with language skills, cultural sensitivity, and awareness of national and other differences across markets.

Companies with effective diversity programs can avoid costly lawsuits and damage to their corporate reputations from charges of discrimination or cultural insensitivity.

Diversity practicesDiversity 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.

Family-friendly programs at General MillsFamily-friendly programs at General Mills

An on-site infant care center. Flexible work arrangements. On-site health care services, including mammograms for busy

working mothers. Emergency child care for parents whose regular arrangements fall

through. Exercise classes offered at the company’s health and fitness

center.

Exhibit 19.B