Chapter _ 2 Diversity in Organizations
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Transcript of Chapter _ 2 Diversity in Organizations
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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.
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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.
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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
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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…
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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
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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.
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The Wage Gap21
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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
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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
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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
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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
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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
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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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