Chapter 5

1. Chapter 5 Managing Diverse Employees In a Multicultural Environment

2. Sources of Diversity MGMT 321 - Chapter 5

3. Diversity Concerns • Ethical imperative for equal opportunity • Effectively managing diversity can improve organizational effectiveness • There is substantial evidence that diverse individuals continue to experience unfair treatment • Glass ceiling MGMT 321 - Chapter 5

4. Major EEO Laws Insert Table 5.1 MGMT 321 - Chapter 5

5. Age and Women • Aging U.S. Population • Median age in the United States is 36.2 years • By 2030 20 % of the population will be over 65 • Women in the Workplace • U.S. workforce is 46% percent female • Women’s median weekly earnings are $572 compared to $714 for men • Women hold 16% of corporate officer positions MGMT 321 - Chapter 5

6. Race and Ethnicity • Census Bureau distinguishes between the following races • American Indian, Asian, African-American, Native Hawaiian and White • Ethnicity refers to whether a person is Hispanic or not Hispanic • Most Hispanics prefer to be identified by their country of origin • The racial and ethnic diversity of the U.S. population is increasing exponentially MGMT 321 - Chapter 5

7. Capabilities and Disabilities • Providing reasonable accommodations for individuals with disabilities • Promoting a nondiscriminatory workplace environment • Educating the organization about disabilities and AIDS MGMT 321 - Chapter 5

8. Other Forms of Diversity • Accommodation for Religious Beliefs • Scheduling of critical meetings • Providing flexible time off for holy days • Posting holy days for different religions on the company calendar • Socioeconomic background • Being sensitive and responsive to those who might not be as well off as others • Sexual Orientation MGMT 321 - Chapter 5

9. Critical Managerial Roles • When managers commit to diversity, it legitimizes diversity efforts of others • Top-management commitment and rewards are critical for success • Effective management of diversity hinges on: • Minorities start out at a slight disadvantage due to the perception of others in the organization • Slight differences in treatment can accumulate and result in major disparities over time MGMT 321 - Chapter 5

10. Justice • Distributive Justice • The distribution of organizational resources based on meaningful contribution • Procedural Justice • The use of fair procedures to determine how to distribute organizational resources • Exists when managers: • Carefully appraise a subordinate’s performance • Take into account any environmental obstacles • Ignore irrelevant personal characteristics MGMT 321 - Chapter 5

11. What Diversity Provides • A variety of points of view and approaches to problems and opportunities • A wider range of creative ideas • More attention to the needs of diverse customers • Increased retention of valued organizational members • Expected/required by other firms MGMT 321 - Chapter 5

12. Perception • The process through which people select, organize, and interpret what they experience • Inaccurate perceptions are likely to lead to bad decisions and inappropriate actions • Bad managerial decisions include: • Not hiring qualified people • Failing to promote top-performing subordinates • Promoting poorly performing managers because they have the same “diversity profile” MGMT 321 - Chapter 5

13. Perception • Schema • Abstract knowledge structure that allows people to organize and interpret information • Stereotype • Simplistic beliefs about the typical characteristics of particular groups of people • Bias • Systematic tendency of using information in ways that result in inaccurate perceptions MGMT 321 - Chapter 5

14. Biases • Similar-to-me effect • Perceive others who are similar to ourselves more positively than we perceive people who are different • Social status effect • Perceive individuals with high social status more positively than those with low social status • Salience effect • Focus attention on individuals who are conspicuously different MGMT 321 - Chapter 5

15. Overt Discrimination • Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization • Unethical and illegal • Violation of the principles of distributive and procedural justice • Subjects firm to lawsuits MGMT 321 - Chapter 5

16. Managing Diversity • Secure top management commitment • Strive to increase the accuracy of perceptions • Increase diversity awareness and skills • Pay close attention to evaluations • Consider the numbers • Reward employees • Provide training • Encourage mentoring MGMT 321 - Chapter 5

17. Diversity Awareness Programs • Provide members with accurate information about diversity • Uncover personal biases and stereotypes • Assess personal beliefs, attitudes, and values and learning about other points of view • Develop an atmosphere in which people feel free to share their differing perspectives • Improve understanding of others who are different MGMT 321 - Chapter 5

18. Sexual Harassment • Types of Sexual Harassment • Quid pro quo • Hostile work environment • Eliminating Sexual Harassment • Develop and clearly communicate a policy • Use a fair complaint procedure • Take corrective action as soon as possible • Provide sexual harassment education and training MGMT 321 - Chapter 5

19. Sexual Harassment • Every charge should be taken seriously • Those who go along with it can be victims • Employees sometimes wait before filing a complaints • Alternate ways to report incidents should be provided • Employees who report sexual harassment must have their rights protected • Allegations should be kept confidential MGMT 321 - Chapter 5

20. Sexual Harassment • Investigations of charges and disciplinary action should proceed in a timely manner • Managers must protect employees from third-party employees as well • Sexual Harassment Policy • Should be communicated to each new employee and reviewed with current employees • Suppliers and customers need to be familiar with the policy MGMT 321 - Chapter 5