Diversity in the Workplace

OverviewHow Diverse Are We and Why Is Diversity Important? Types of Diversity Laws and Executive Orders Prohibiting DiscriminationChallenges of DiversityStrategies for Managing Diversity Programs for Managing Diversity

US Workforce is More Diverse than Ever Before

More women are working than ever beforeThe workforce will continue to get olderThe number of immigrants has increasedEthnic and racial diversity is increasing

Why is Diversity Important?The service economy

Interactions between people are keyCustomer base is more diverseSimilarities between people ease process

Globalization of businessDoing business with people from around world

The changing labor marketCompany mergers and buy-outs

Types of DiversityGender DiversityAge DiversityCultural DiversitySexual OrientationFamily SituationsPhysical and Psychological DisabilitiesPolitical ViewsPersonal Idiosyncrasies

Proportion of Women in the Workforce 1950-2000

Source: U..S. Bureau of Labor Statistics

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10

20

30

40

50

60

70

Year

Perc

en

t

Gender Diversity: Nonstandard work

More women in workforce today than everBetter educated than ever

Most “nonstandard” workers (those who do not hold regular, full-time jobs) are women

55% of workers paid by temporary agencies are women70% of part-time workers are women

Stereotypes still remainGlass ceiling, etc.

Gender Diversity: Wages and Income

In 2000, women who worked full-time, year round earned 74.3 cents for each dollar earned by menOver a lifetime of work, the average 25-year-old woman who works full-time, year round until she retires at 65 will earn $523,000 less than the average working man58% of the workers who benefited from the last minimum wage increase were women

Age Diversity

As population ages, more older workers are availableRe-entry of middle-aged women to workRetirees returning to supplement pensionInternships bring in more younger employees

Cultural DiversityAffects values, view of the worldMore than 40% of new entrants into U.S. workforce from non-“majority” groups

About 22% new immigrantsAbout 20% African-American or Hispanic

Growing international businessEmployees maintain ties to national and cultural heritage

Cultural Diversity (Hofstede)Managers and employees vary on 5 dimensions of national culture:

1. Individualism vs. collectivism

2. Power distance: extent to which a society accepts the fact that power in institutions and organizations is distributed unequally

3. Uncertainty Avoidance: The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them

4. Quantity vs. Quality of Life (also masc/fem)

5. Long term orientation

Comparison of US vs. World Average on Hofstede’s Dimensions

Power Distance

Masculine

Long term

Individualism Uncertainty Avoidance

Power Distance

Masculine

Long term

Individualism Uncertainty Avoidance

Sexual Orientation Diversity

Approximately 10-14% of the US workforce is lesbian, gay, or bisexual (LGB; Powers, 1996)

Disclosure of sexual orientation is a critical and complex decision that is affected by many factors (Ragins et al., 2001)

Sexual Orientation Diversity

Most discrimination laws (e.g., CRA of 1964) do not protect sexual identityDiscrimination against employees who are or who are perceived to be LGB is legal in most workplaces (Button et al., 1997; van der Meide, 2000)

25-66% of LGB employees report discrimination. This number is likely much higher due to low disclosure rates (Badgett, 1996; Driscoll et al., 1996; Schneider, 1987)

Other Types of Diversity

Family situationsSingle employees (mothers and others)

Physical and psychological disabilities

Americans with Disabilities ActPolitical viewsPersonal idiosyncrasies

The pay gap, 1985-2000 median weekly earnings of full-time workers, as a percentage of those of white men

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20

40

60

80

100

120

1985 1990 1995 1999

White men

Black men

White women

Hispanic men

Hispanicwomen

Source: U.S. Census Bureau, Statistical Abstract of the United States, 2000, Table 696, p. 437.

Where Women and Minorities ManageFemale Black HispanicPercentage of total, 1999

All occupations 46.5%11.3% 10.3%Managerial and professional 49.5 8.0 5.0Executive, administrative and managerial 45.1 7.6 5.6Public officials and administrators 51.1 14.0 4.9Financial managers 51.1 7.0 5.4Personnel and labor relations managers 60.4 10.9

6.3Purchasing managers 47.4 8.9

5.6Marketing, advertising, and PR 37.6 4.8 2.7 Educational administrators 62.5 15.0 4.8Health care managers 77.4 8.9

6.6Property and real estate managers 49.4 6.6 8.9Management-related occupations 57.8 9.8 5.3

Source: U.S. Census Bureau, Statistical Abstract of the United States, 2000, table 669, pp. 416-418.

Federal Laws and Executive Orders Prohibiting Job Discrimination

Equal Pay Act (1963)Civil Rights Act (1964; amended 1972, 1991)Executive Order 11246 (1965)Age Discrimination in Employment Act (1967)

Equal Employment Opportunity Act (1972)Pregnancy Discrimination Act (1972)Americans with Disabilities Act (1978)Family and Medical Leave Act (1993)

Challenges of DiversityAvailability Challenge

In past employers could control diversity•More people than jobs

Qualified employees have become scarce•Employers must become more flexible•Realize “Different does not mean deficient”

Fairness challengeIn past, typically viewed as equal treatment•Equal Employment Opportunity

Now employers must embrace new diversity•Essentially focus on “differences”

Challenges of DiversitySynergy challenge

More and more group-based workDiversity can create positive and negative conflict•Can facilitate creative problem-solving•Can close down communication•Can derail group processes

Group leaders must minimize destructive conflict and maximize diversity of input

Strategies for Managing Diversity

Articulate a clear diversity mission, set objectives, and hold managers accountable.Spread a wide net in recruitment to find the most diverse possible pool of qualified candidates.Identify promising women and minorities and provide them with mentors and other kinds of support.Set up diversity councils to monitor the company’s goals and progress toward them.

Programs for Managing Diversity: Diversity Training

Providing managers with trainingHow to recruit/hire diverse employeesHow to orient/integrate new employees

Providing all employees with trainingRealizing the differences that existLearning how differences affect working environmentHow to maximize productivity without ignoring employee differences