Chapter 8

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives L01: Describe how changes in the U.S. workforce make diversity a critical organizational and managerial issue. L02: Distinguish between affirmative action and managing diversity. L03: Explain how diversity, if well managed, can give organizations a competitive edge. L04: Identify challenges associated with managing a diverse workforce. Learning Objectives L05: Define monolithic, pluralistic, and multicultural organizations. L06: List steps managers and their organizations can take to cultivate diversity. L07: Summarize the skills and knowledge managers need to manage globally. L08: Identify ways in which cultural differences across countries influence management. Managing Diversity Involves recruiting, training, promoting, and utilizing to full advantage individuals with different backgrounds, beliefs, capabilities, and cultures. Understanding and deeply valuing employee differences to build a more effective and profitable organization. Valuing the connections that arise and develop between diverse employees. Components of a Diversified Workforce What is diversity? Gender Age Religious affiliation Disability status Military experience Sexual orientation Educational level Who needs diversity training? Gender Demographics Women make up about 465 of the workforce Women in the workforce climbed from 1970s and 1990s and is now holding steady as rate of men declines About 60% of all marriages are dual-earner marriages One of every four married women in two-income households earns more than her husband does Gender Issues Women still carry the bulk of family responsibility Some companies expect employees to put in long hours and sacrifice personal lives Organizations are becoming more flexible in balancing organizational and employee needs Pay disparities still exist between men and women ?Glass ceiling? barrier is a reality for many women Sexual harassment in the workplace has increased Glass Ceiling Invisible barrier that makes it difficult for women and minorities to rise above a certain level in the organization Currently 12 women are chief executives of Fortune 500 companies Some companies are offering activities to help female employees break through the glass ceiling Sexual Harassment Conduct of a sexual nature that has negative consequences for employment Two categories Quid pro quo: submission to or rejection of sexual conduct is used as a basis for employment decision. Hostile environment: when unwelcome sexual conduct ?has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.? Components of a Sexual Harassment Policy Develop a comprehensive organization-wide policy on sexual harassment and present it to all current and new employees. Hold training sessions with supervisors to explain Title VII requirements, their role in providing an environment free of sexual harassment, and proper investigative procedures when charges occur. Components of a Sexual Harassment Policy Establish a formal complaint procedure in which employees can discuss problems without fear of retaliation. Act immediately when employees complain of sexual harassment. When an investigation supports employee charges, discipline the offender at once. Follow up on all cases to ensure a satisfactory resolution of the problem. Minorities and Immigrants Black, Asian, and Hispanic workers hold more than one of every four U.S. jobs Asian and Hispanic workforces are growing the fastest in the U.S., followed by African American workforce Three in ten college enrollees are people of color. Foreign-born workers make up more than 15% of the U.S. civilian labor force. About half of these workers are Hispanic, and 22% are Asian. The younger Americans are, the more likely they are to be persons of color. One in 66 people in the U.S. identifies himself or herself as multiracial, and the number could soar to 1 in 5 by 2050. What?s going on with minorities? White males are no longer dominating the workforce in urban areas Managing diversity is becoming more than eliminating discrimination Capitalizing on the wide variety of skills available in the labor market There are still disparities in employment and earnings Unemployment rates are higher for Hispanics and African Americans Median earnings for white workers is higher than those for Hispanics and African Americans Overcoming disparities Organizations have policies and programs to increase minority representation, including compensation systems that reward managers for increasing the diversity of their operations. Companies are focusing on developing, hiring and retaining minority executives based on their ability to manage an ever-more-diverse workforce and to serve an increasing number of clients and customers with varied backgrounds Mentally and Physically Disabled People Largest unemployed minority population in the U.S. is people with disabilities. New assistive technologies are making it easier for companies to comply with ADA and for people with disabilities to be productive on the job. People with disabilities are an unexplored but fruitful labor force. Tomorrow?s workers The number of women, Asian Americans, African Americans, and Hispanic workers are growing faster than the number of white male workers Lower birth rates in the U.S. will result in a smaller labor force leading to outsourcing to firms in developing nations Median age of America?s workforce is increasing 70% of workers between the ages of 45 and 74 intend to work in retirement Utilizing Older Employees Walgreens Employs the ?Unemployable? Read the story on page 180 What competitive advantage might Walgreens gain with its proactive stance toward hiring workers with disabilities? What challenges might Walgreens face in managing this workforce? Managing Diversity vs. Affirmative Action Managing Diversity: moving beyond legislated mandates to embrace a proactive business philosophy that sees differences as positive Affirmative Action: Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past Diversity as a competitive advantage Ability to attract and retain motivated employees Better perspective on a differentiated market Ability to leverage creativity and innovation in problem solving Enhancement of organizational flexibility How companies use diversity? The challenges of managing a diverse workforce Seeing the world from another?s perspective can be difficult Diversity can create a lack of cohesiveness Communication problems such as misunderstandings, inaccuracies, inefficiencies, and slowness People prefer to associate with others who are like themselves We learn to interpret the world in a certain way based on our backgrounds and experiences Diversity Assumptions that influence Organizations Multicultural Organizations Monolithic Organization ? one that has a low degree of structural integration-employing few women, minorities, or other groups that differ from the majority-and thus has a highly homogeneous employee population Pluralistic Organization ? An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial or cultural backgrounds Multicultural Organizations (cont?d) Multicultural Organization ? one that values cultural diversity and seeks to utilize and encourage it. Five Components of Cultivating a Diverse Workforce Securing top management?s leadership and commitment Assessing the organization?s progress toward goals Attracting employees Training employees in diversity Retaining employees Attract Qualified Diverse Employees Recruitment Accommodating work and family needs Alternative work arrangements Train employees to understand and work with diversity Awareness building: designed to increase recognition of the meaning and importance of valuing diversity Skill building: aims to develop the skills that employees and managers need to deal effectively with one another and with customers in a diverse environment Retain talented employees Support groups ? provide emotional and career support for those excluded from the majority?s informal groups Mentoring ? when higher-level employees help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization. Retain Talented Employees Career development and promotions Systems accommodation Accountability Managing Across Borders Expatriates Host-country nationals Third-country nationals Successful Global Managers have? Sensitivity to cultural differences Business knowledge Courage to take a stand Ability to bring out the best in people Integrity Insightfulness Commitment to success Risk taking Use of feedback Cultural adventurousness Desire for opportunities to learn Openness to criticism Desire for feedback Flexibility Successful global assignments Structure assignments clearly Create clear job objectives Develop performance measurements based on objectives Use effective, validated selection and screening criteria Prepare expatriates and families for assignments Successful Global Assignments (cont?d) Create a vehicle for ongoing communication with expatriates Anticipate repatriation to facilitate reentry when they come back home Consider developing a mentor program that will help monitor and intervene in case of trouble Cultural Differences Power distance ? the extent to which a society accepts the fact that power in organizations is distributed unequally Individualism/collectivism ? the extent to which people act on their own or as a part of a group Uncertainty avoidance ? the extent to which people in a society feel threatened by uncertain and ambiguous situations Masculinity/Femininity ? the extent to which a society values quantity of life over quality of life Five core values Compassion Fairness Honesty Responsibility Respect for other